Research Insights

Design
Thinking
isn’t enough
How Business Design can
shape your impact on people,
profits, and the planet
How IBM can help
IBM iX® works at the intersection of strategy, design
and technology to digitally reinvent our clients’
businesses. As the Customer Transformation group
within IBM Consulting, IBM iX is one of the largest digital
and design consultancies in the world. We maintain nearly
60 studios and a global network of strategists, designers,
developers and data architects, deep industry and ISV
expertise, and an unrivaled ecosystem of partners. With
our human-centered, outcomes-led approach, we define
digital strategies and help our clients deliver exceptional
customer experiences to create value and differentiation,
by design. For more information, go to:
https://www.ibm.com/consulting or
https://www.ibm.com/services/ibmix
 By Matt Candy,
Billy Seabrook, and
Carolyn Heller Baird

Key takeaways Pivotal questions

for a pivotal time
1.
Business Design helps organizations Claiming to be customer-centric is easy, but the pandemic
quickly laid bare the customer experience (CX)
translate intentional design into measurable weaknesses of many companies. Some stumbled as
business results while also benefiting they rushed to pivot to virtual engagement and digital
customers, employees, and society. commerce. Transformations that had been on companies’
to-do lists forever were urgently elevated to imperatives.
Businesses that have fully adopted Business
Design prize design as a revenue generator No wonder, then, that in our 2021 CEO study, 60% of CEOs
who lead the most financially successful organizations cite
more so than other organizations —82% more. “delivering better customer experiences” among their
highest priorities in the next 2 to 3 years.1

2. And it will need to continue to be a priority. As organizations

emerge from the pandemic, stabilization is still a long
Organizations that have fully embraced way off — COVID-19’s impact continues to be felt across
Business Design are significantly better communities, the workplace, and the marketplace.
positioned to respond to shifting marketplace Meanwhile, as climate change manifests itself in floods,
fires, and heat waves, customer demand for sustainability
demands and thrive even during uncertainty continues to increase, along with a rising consciousness
and disruption: their estimated increase in of racial, social, and economic injustices.
revenue growth in the first half of 2021 To adapt to such seismic shifts, companies need to absorb
was 58% higher than others. lessons learned from the last 18 months and ask some
tough questions:

3.
—How customer-centric are we, really?
—Are our products, services, and experiences
Despite organizations’ urgency to digitally all that differentiating?
transform their business, 40% still cling —Are our models and operations meeting the needs of
to the notion of design as “craft” versus our business, as well as the needs of our customers?

a mindset and practice that applies to any —How are our products and services affecting
the environment?
business challenge.
Business Design, a discipline that applies a design mindset
and principles to solve business problems, may be a critical
part of the answer. Our research shows it can not only add
structure to this soul searching, but also add significant
value to organizations that embrace it. By combining
creativity with strategic and technological expertise— and
the practices of Design Thinking— Business Design enables
organizations to enhance customer and employee
experiences and reinvent business models that can create
new revenue streams.

1
To better understand how organizations are using Business The Design Vanguard’s advantage
Design to architect transformations, the IBM Institute for
We looked for organizations in our sample that prize the
Business Value (IBV) conducted a global survey of 2,000
broad, value-based cultural, technical, and operational
executives and design practitioners across multiple
implications of Business Design. Our data reveals a small
industries (see “Research methodology” on page 19).
subgroup—20% of those surveyed—whom we call “the
Our data shows that despite the urgency to transform Design Vanguard.” They are defined by their full embrace of
their businesses to meet a changing marketplace, few key Business Design principles. Few of the other surveyed
organizations are boldly taking advantage of Business organizations espouse these practices with the same vigor
Design, or reaping the potential value it offers. (see Figure 1).

On the surface, it sounds good: more than two-thirds of

organizations surveyed say a commitment to CX is among
Figure 1
their most important corporate values. But when we probe
deeper to see how they are prioritizing CX improvements What characterizes
and the particular role design plays, we find discrepancies
between aspiration and action. Some startling examples:
the Design Vanguard?
Design Vanguard organizations champion 3
— Just 38% say customer obsession is core
core beliefs and practices of Business Design
to their corporate DNA
—Only 33% of organizations are committed to
“great design” as a core corporate value
Design principles form
— Up to 40% still characterize design primarily as the basis of our
“craft,” not as a mindset and practice that can organizational culture
apply to any business challenge
—As many as 61% say design is, essentially,
a “nice-to-have”
22% 100%
And in an era when much is made of corporate
introspection, social awareness, and mission statements,
we see disconnects. Close to half say the design of their CX We effectively invest in
only moderately mirrors their businesses’ most important and modernize technical/
digital capabilities
principles. And when asked if products and services are
designed to reflect their corporate values, more than 40%
of respondents are uncertain.
63% 100%
Concerns over sustainability are increasing. 80% of a
product’s environmental impact is locked in at the design
phase, so aligning design methodologies and outcomes to We effectively scale
sustainability targets is critical.2 Designing digital services solutions to meet
that support physical product lifecycles can also play an business demands
important role in mitigating impact.

Is there evidence companies are stepping up to this

challenge? Yes, but our findings also suggest these 55% 100%
organizations are in the minority.

Other organizations | Design Vanguard

2
The Design Vanguard’s
commitment and approach
to design, technology and
business results sets them
apart from other organizations.

All industries and countries surveyed are represented in — Restlessness alone isn’t enough.
the Vanguard, as well as a mix of B2C and B2B companies. Those among the Design Vanguard whose corporate
It’s the Vanguard’s commitment and approach to design, culture tilts heavily toward a restless embrace of change
technology, and business results that sets them apart from see a revenue growth rate premium of 121% compared
the other organizations. Critically, this strategy is highly with others that appear just as restless.
correlated with improved performance. Indeed, many
more Vanguard businesses than other organizations— 82% — Design culture gets more out of tech.
more— count design as a revenue-generating capability. The Design Vanguard is better at converting the use of
technology into business performance. For example,
When asked how their CX has fared compared to their Vanguard organizations that invest in cloud to improve
competition over the last 3 years, 19% more Design customer and employee experiences see a 71% revenue
Vanguard companies report outperforming their peers. growth rate premium compared to others making these
And when so many businesses are stressed today, same investments.
Vanguard companies express confidence in their ability
— Making employee experiences count.
to thrive despite market uncertainties. The Design
Those Vanguard businesses that continuously iterate
Vanguard’s estimated increase in revenue growth in the
and improve employee experience see a 64% revenue
first half of 2021 (compared to 2020) is 58% higher than
growth rate premium compared to other organizations
other organizations’ estimates.
that do the same.
Based on these revenue growth estimates, our research
In this report, we examine the components of Business
uncovered additional commonalities shared by the Design
Design, noting where some organizations may struggle,
Vanguard. We found that even when other organizations
and what the Design Vanguard does differently. And we
follow some of the same practices, the Design Vanguard
offer actions for adopting a comprehensive Business
enjoys significant performance advantages over those
Design approach—one that can enhance both customer
other companies. Why?
satisfaction and potential value to the organization.
Our research suggests it’s not just a select set of activities
that dial up growth. Rather, it’s the full adoption of a
Business Design approach that correlates with improved
performance. For example:

— Design dominates.
The Design Vanguard is better at converting strategy into
business outcomes. Among the organizations that say
design is essential to their business strategies, Vanguard
organizations see a staggering revenue growth rate
premium of 175% compared to others.

3
Perspective: Business Design and
How good ideas fail3 Design Thinking:
A large North American retailer wanted to introduce The critical differences
new product categories to attract a broader customer
base. But the company didn’t have space for the People often think Business Design and Design Thinking are
products in their physical stores. Their solution: sell interchangeable, but the two are distinct entities. Business
these categories online only. Design is indeed rooted in a Design Thinking approach, with
Design Thinking remaining a foundational practice for
The company developed a well-designed digital business designers.
experience, but that alone wasn’t sufficient.
Customers were soon frustrated when they couldn’t Design Thinking originated as an antidote to traditional
find online items in stores, or conveniently return software development practices that too often resulted
online purchases there. Instead of enhancing their in applications that weren’t intuitive for end users. Design
CX, the retailer had created new customer pain points. Thinking reframes problems from the end user perspective,
using an experimental, iterative approach to excavate
Fixing this wasn’t easy. Because the online solution fresh, creative points of view. This approach helps teams
had been designed as an isolated initiative, dodge biases that stunt their imagination, moving beyond
organizational silos between the stores and the “the way we’ve always done things.”4
e-commerce venture became deeply entrenched.
The stores and e-commerce experience operated Business leaders soon realized that Design Thinking’s
almost as separate entities, with their own data, human-centric exercises could apply to virtually any
financials, KPIs, and incentives. challenge. But, as an isolated effort, Design Thinking had
a key shortcoming. When designing solutions, addressing
The online effort sputtered and underperformed, quantifiable value to the business was often a lower
until the business assessed and redesigned the priority—or even overlooked altogether.
strategic, operational, and technical barriers that
were impeding success. Business Design: Balancing customer
satisfaction with business value
Even though the output of a Design Thinking session is
often truly innovative, business practicalities such as
budgets, competing strategies, revenue targets, resource
allocations, and business model impact can quickly derail
a great idea. At best, there are compromises. In extreme
cases, business requirements can subvert the solution—
sometimes beyond recognition (see Perspective, “How
good ideas fail”).

4
 Business Design far outpaces
Design Thinking as a standalone
practice to benefit business
functions, physical products,
services, and experiences across
the enterprise.

This is where Business Design far outpaces Design Thinking Our research indicates the application of Business Design
as a standalone practice. By combining Design Thinking extends beyond digital projects to benefit business
creativity with the strategic, operational, and technological functions, as well as physical products, services, and
expertise of Business Design, organizations can re-imagine experiences across the enterprise. Furthermore, the latest
business models, reinvigorate value streams, and enhance evolution of these practices incorporates a societal lens
return on investment (ROI) potential. that can help cross-functional teams better understand—
and manage—the broader impact of their solutions (see
Figure 2).5

Figure 2

Broadening empathy by design

Business Design employs empathy for user,
business, and societal needs, combining these
different perspectives to create value for all.

Focus on business
Focus on  Problem scoping problems and societal/
user problems  environmental concerns 

Market potential,
User interviews,  competitor analysis,
empathy mapping, User research Market research benchmarking,
insight generation societal/environmental
developments

User-centric 
Business model design,
scenarios, Creating
target operating model
proof o
 f concept

Business value
Experience 
evaluation, hypothesis
prototypes,  Prototyping Validating
testing, business case,
user co-creation
KPIs

User acceptance
Go-to-market strategy,
testing, user interviews, Implementing
solution activation
design planning

5
Perspective: Business Design integrates the Design Thinking mindset
and principles to solve business problems. But what’s
The driving questions unique about Business Design is its empathy for end users,
business needs, and broader cultural concerns. And as
behind Business Design our Design Vanguard findings illustrate, Business Design
combines these perspectives in a way that can help
Successful business approaches tend to have create significant value to the business, while benefiting
underlying principles—not rigid rules— that, if customers, employees, and society (see Perspective,
adhered to, help ensure the approaches work in “The driving questions behind Business Design”).
practice. Business Design relies on a set of questions
to guide thinking, innovating, and acting in a way that
never loses sight of the need for customer-centric
solutions to also create value for the business. Business Design basics:
How does this solution: insights, ideas, impacts
To enable business leaders to act boldly with greater
confidence, flexibility, and speed, Business Design
Support our top and requires deep observation, ideation, and evaluation.
bottom lines?
To put this into practice, Business Design comprises
3 central elements. While many organizations address
some of these, our research suggests that, to realize
Support our growth the potential value enjoyed by the Design Vanguard,
strategies? organizations need to focus on all 3. They include:

—Insights
gleaned from multiple sources that
Impact current and
reflect needs, goals, and trends
future business models?
—Ideas
that integrate insights with underpinning
enablers such as workflows and technologies
Differentiate us from
our competition? —Impacts
on people, profits, and the planet — evaluated
with meticulous measurements and metrics
Align to our brand
promise and reflect
our corporate values,
such as a commitment
to sustainability or
employee wellbeing?

6
 The vast majority of the Design
Vanguard (86%) routinely
conduct/review end user
research—over a third of other
organizations do this minimally
or not at all.

Insights: analyzing data for User needs

informed design decisions For a solution to be successful, business designers need to
fully understand the desires, needs, and concerns of end
Business Design relies on data assembled from a variety
users—including customers, employees, and ecosystem
of sources. Business designers analyze and synthesize
partners. But trying to predict human response is not an
this input, transforming it into intelligence that fuels
exact science. That’s why business designers research far
purposefully designed solutions. Typically, this analysis
more than surface-level user needs. They also delve into
covers users (both internal and external), business goals and
complex end user emotions. Classic ethnographic
metrics, and societal and cultural trends (see Figure 3). In a
techniques are valuable here, as well as qualitative
very real sense, insights are the bedrock of Business Design.
research practices such as conducting interviews, focus
groups, and virtual jams.

Business designers also tap quantifiable sources such

Figure 3
as marketing, sales, customer support, and customer
Foundational insights relationship management (CRM) system data. As well,
A broad, thorough understanding they can use customer surveys, input from Voice of the
leads to better solutions Customer (VoC) programs, journey-mapping results,
and data output from AI-driven workflows.

User needs It’s difficult to be customer-centric if you don’t understand

your customers’ motivations and behaviors. Yet our data
reveals a distinct gap between companies that claim to be
customer-driven and those actually doing the legwork to
design customer-friendly solutions.

When we asked respondents if their designers routinely

conduct or review end user research to inform design
decisions, the vast majority of the Design Vanguard (86%)
Insights report this is part of their process—34% more than other
organizations. Indeed, over a third of other organizations
do this minimally or not at all.

Importantly, organizations also need to avoid injecting

unconscious biases into the analysis that drives solutions.
To steer clear of this trap, organizations need diverse
Societal/ Business perspectives, voices, and talent that better reflect the
cultural/trends goals wide range of users and cohorts they serve.6

7
An Australian Business goals
Capturing insights about business goals early is a
energy company: distinctive hallmark of Business Design. For financial
results, business designers can review projected revenue
Calculating growth, profits, costs, and expectations for ROI. However,
speed to value7 numerous other types of KPIs and performance metrics,
such as those related to workflows, can be informative.
A leading Australian energy company needed to Determining which ones offer true signals of performance,
improve efficiencies and revenue and reduce costs. and which ones are less important (the noise), is a key
The company embedded the IBM Garage practice, feature of this analysis (see case study, “Calculating
using Business Design at its core, to accelerate and speed to value”).
scale its transformation and revamp critical business
operations.8 Brand implications, privacy and security considerations,
and legal concerns may be less quantifiable but are just
Executives participated in a 3-day virtual workshop to as important. They’re examples of input that goes beyond
explore where improvements could be made, creating the numbers to create a comprehensive view of the
a pipeline of initiatives. For each initiative, team investment. Secondary research can provide important
members now analyze the problem from numerous data points, perspectives, and opportunities to benchmark
angles and determine which people, technology, and expectations against competitors’ performance.
resources are available.
Marketplace analysis—which the lion’s share of the
To calculate an initiative’s speed to value and rate Design Vanguard conducts (80%)—is a necessary input
of transformation, the team uses the IBM Garage to establishing business goals. Unfortunately, far fewer
VOTE (Velocity, Outcomes, Technical debt, Employee other organizations do this analysis (62%), and as many
experience) framework. This is continually updated as 38% concede they don’t put much effort into it.
across initiatives and aggregated to assess the
investment potential of each.

The company’s investment board uses this information

to decide which initiatives to fund and in what
sequence. Currently, it has multiple in-flight squads
comprising researchers, designers, and developers
who are transforming, automating, and simplifying
intelligent workflows across the company’s value
and supply chains.

8
Insights about societal and
cultural needs are essential
components of a Business
Design strategy.

Cultural and societal trends Ideas: designing value-driven innovations

Heightened societal awareness about sustainability, that integrate insights and enablers
diversity and inclusion, social justice, and health and
well-being markedly influences customers’ opinions of Every action begins with the germination of an idea.
brands.9 For example, 93% of consumers globally say Business designers use insights to formulate ideas by
COVID-19 affected their views, not just of environmental focusing on 3 main areas: business platforms and
sustainability, but also social responsibility.10 Organizations experiences (the what), workflows (the process), and
are paying attention. Not only are they aligning their brand technology (the enabler) (see Figure 5).
purpose and corporate values to these societal trends, but
they are using their reinvigorated values to drive important Business platforms and experiences (the what)
investment decisions. The Design Vanguard is especially Increasingly, organizations are expanding their
taking this to heart (see Figure 4). ecosystems and value chains to create new platforms
for their businesses and to develop new markets. In fact,
Given the high stakes for customers, employees, and executives expect partner collaborations to grow more
corporate strategies, insights about societal and cultural than 300% within 2 years.11
needs are essential components of a Business Design
strategy. Research methods used here emulate those
addressing business and user needs. Marketplace and
competitive analysis, social listening, surveys, and
secondary research can reveal useful intelligence, as well
as findings sourced from organizations’ internal initiatives,
such as those focused on sustainability or diversity.

Figure 4 Figure 5

Putting their money Fertile soil for ideas

where their mouth is Exploring platforms, workflows, and
The Design Vanguard’s investments technology to cultivate better ideas
mirror their corporate values

Business platforms and experiences

Ideas

67% 45%
Design Vanguard Other organizations

Percentages represent the response: “Investment Technology Workflows

decisions reflect our corporate values to a large extent.”

9
Alarmingly, more than a third
of businesses outside the
Vanguard confess design isn’t
much of a consideration for
product development.

This strategy can accelerate access to new sources of Notably, more Design Vanguard organizations use design
product and service innovation. Organizations are analyzing practices in other areas as well. An overwhelming majority
the large data volumes now available to them and mining of the Design Vanguard (87%) value the role design plays in
that information to spark creativity.12 As they navigate this business strategy development. Fewer other organizations
ocean of data, incorporating a holistic Business Design profess the same (65%). And more Vanguard companies are
approach helps keep quantifiable business value as a deploying Design Thinking as a human-centric, problem-
central component of ideation. solving technique in operations (54% more), sales (55%
more) and finance (15% more).
Of course, user experience (UX) design has been a
core discipline of digital development for decades. Not Workflows (the process)
surprisingly, more than three-fourths of respondents Addressing the processes and operational aspects of a
say design plays an important role in the creation of potential solution is an essential feature of Business Design.
user interfaces. Workflows serve as a backbone, creating a consistency of
experience and quality for end users throughout the value
But our data reveals gaps in other areas where design chain: “Friction out. Intelligence in.”
practices could be inserted to a greater extent. For example,
while most respondents cite design as important to the The more extensive the scope of a workflow and the greater
development of customer-facing services, more Design its end-to-end connectivity between customers and
Vanguard organizations say it is essential. And alarmingly, contributing participants, the greater the business outcomes
more than a third of businesses outside the Vanguard can be. Broadening this scope across an organization’s
confess design isn’t much of a consideration for product ecosystem to include its customers, employees, suppliers,
development (see Figure 6). and other stakeholders can exponentially amplify the value
potential of the enterprise. In short, the extended workflow
becomes the delivery mechanism for new business
platforms and experiences.13
Figure 6

Design—the missing ingredient

More Design Vanguard organizations value integrating
design practices into services and product development

Role design plays in:

Service development Product development
Very important/essential Very important/essential
35% 24%
22% 17%

Important Important
59% 59%
64% 47%

Not considered Not considered

6% 17%
13% 36%

Design Vanguard Other organizations

10
Business designers can scrutinize internal workflows
through human-centered design research and process
Perspective:
mining, and execution-management tools.14 This exploration Future technology
can generate ideas for improvements and innovations that
use intelligent workflows, AI automation, enterprise investments to
mobility, platform optimization, and talent strategy. transform experiences
The majority of the Design Vanguard (68%) says design plays Among those respondents who report their
an important role in workflow and process development, organizations are dedicated to transforming
19% more than other organizations. Unfortunately, too many experiences for customers or employees, 77%
organizations outside the Vanguard (43%) risk creating are currently investing in cloud computing, far
flawed workflows by ignoring or minimizing the need for outpacing other technology investments.
design as part of their development efforts.
When asked about planned investments within
Technology (the enabler) the next 2 years, their focus shifts to a mix of
Enabling technologies are central to a Business Design CX-related technologies. This suggests that
approach. AI, IoT, application modernization, and digital architecting essential cloud solutions is well
experience platform (DXP) optimization are examples of underway. While cloud enhancements continue
technologies that can unlock efficiencies and help create to be needed, with this foundation organizations
truly differentiated experiences. Hybrid cloud is a can exploit other technologies to further improve
technology that’s inherently flexible and nimble, enabling and differentiate their CX.
an organization to access the full potential of leading open
technologies to drive innovation.15 Top technologies that organizations plan to
invest in within 2 years:
Business designers, by definition, are knowledgeable about
technology underpinnings. But they may also collaborate
with IT SMEs to design how to better use robust networks
1 Robotic process automation (RPA)

and a security-rich technology foundation to implement the

2 AI
right workloads within the right overarching architecture.16
This can create the adaptability and resilience needed for 3 Rules-based chatbots
exceptional products, services, and experiences.
4 Advanced analytics
Regrettably, many organizations’ innovations may be
limited due to a lack of investment. While more than half Virtual agent, natural
of the Design Vanguard reports prioritizing CX-related
5 language processing (NLP)
technology investments to a large extent, just a third of
other organizations have made the same commitment 6 Customer relationship management (CRM)
(see Perspective, “Future technology investments to
transform experiences ”).
7 ERP software and systems

Design also has a role to play in determining the

8 Digital Experience Platforms (DXPs)

composition of the enabling technologies a company

9 Internet of Things (IoT)
depends on to generate innovation. But for many
organizations outside the Design Vanguard, this is not part 10 Blockchain
of the ideation effort. For example, 67% of the Vanguard
says design plays an important role in the creation of AI
solutions. But only 58% of other companies claim the
same, and another 20% confess design isn’t a factor.

11
Business Design
anticipates, evaluates,
and designs outcomes
that can be measured.

Impacts: Assessing how solutions can People

affect people, profits, and the planet To determine the potential impact of its actions on people,
companies need to cast a broad net. Important stakeholders
Impact is Business Design’s primary purpose. It enables
can include far more than customers—from employees,
organizations to transcend design that merely pays homage
families of employees, shareholders, suppliers, and
to creativity and innovation. Instead, they can embrace a
ecosystem partners, to affected communities.17
process that genuinely anticipates, evaluates, and designs
outcomes affecting people, profits, and the planet— Measuring design’s effect on people can take many forms.
outcomes that can be measured (see Figure 7). Business designers engage in rapid prototyping and user
testing aligned with Design Thinking practices. They follow
an agile approach to iteration, monitoring and measuring
each release to determine needed enhancements in a
continuous feedback loop.

The methods used to capture people’s opinions about

impacts are similar to those used to capture insights. More
than half of survey respondents use Net Promotor Scores
(NPS) and nearly as many measure customer satisfaction.
But the Design Vanguard also mines other data sources,
such as customer journey analytics (52% compared to
just 27% of other organizations). Businesses can also tap
into performance data from a variety of systems such as
AI-driven workflows, CRM, and DXP applications. And
customer support or service desks can offer a wealth of
information, from hard data to personal insights from
Figure 7 frontline representatives.

Making a difference
A process that yields measurable outcomes
for people, business, and the planet

People

Impacts

Planet Profits

12
Profits The planet
Overall, launching solutions that deliver measurable value Today’s business designers are opening the aperture to
back to the business distinguishes Business Design from assess the impact of solutions on sustainability goals.
Design Thinking. Bringing innovations to market is deeply Consider this: more than 2 in 3 consumers now say
important—yet those innovations must also advance environmental issues are significantly important to them
enterprise goals. Not surprisingly, measuring the value of personally. Retail and consumer products industries are
design is another practice adopted by more of the Design responding in kind, with 9 out of 10 companies in those
Vanguard (see Figure 8). industries expecting to work on various enterprisewide
sustainability initiatives by the end of 2021.19
To validate a solution’s financial impact, organizations can
consider many metrics—revenue growth, retention rates, An organization needs to evaluate its carbon footprint,
cost to serve, share of wallet, up-sell, and cross-sell, just how it uses natural resources, and its handling of toxic
to name a few. Which ones to prioritize depends on the materials. It also needs to assess how it handles waste
industry, defined business goals, and project KPIs. Business removal, reforestation when needed, and other
designers focus on determining the proper balance to restorative measures.20
create a clear picture of value to the organization.

Yet, when considering impact to the business, profit can

extend beyond an organizations’ financial ledger. Business
Design also incorporates analysis of value generated across
an organization’s ecosystem, as well as positive (or negative)
impact on local, national, or international economies.
How does the organization create employment, pay taxes,
generate innovation, and create wealth? What other
economic impact does an organization create—or disrupt?18
Figure 8

Determining design’s value

The Design Vanguard, more so than other
organizations, measures the value of design

Extent that organizations measure design

performance to determine its value

Significantly
50%
32%

Moderately
41%
35%

Minimally, if at all
9%
33%

Design Vanguard Other organizations

13
A Garage methodology It’s encouraging that 76% of executives report that
sustainable development goals help them align with
for sustainability their brand purpose. And 73% expect their sustainability
goals to help them drive business results that last.24
How do companies address the many elements that Evolving into an environmentally responsible corporate
go into Business Design and reach outcomes quickly? citizen can ultimately benefit people and profits—as well
A “Garage” approach integrates Business Design as the planet (see Perspective, “A Garage methodology
practices that are grounded in experience—from for sustainability”).
implementation at global scale through culture change—
into a single, seamless, end-to-end methodology.

Built on agile principles, it uses DevOps tools and

techniques for continued operations and delivery Business Design:
while promoting culture change and digital talent. From “nice-to-have”
An example of its output: workflows that describe
a set of activities needed to realize outcomes. For to C-suite strategy
example, a workflow that illustrates how to define
a minimum viable product (MVP) also describes While few organizations would claim that the design
activities and related practices to create an actual of experiences, products, or services doesn’t matter,
implementable MVP.21 we’ve discovered that design is indeed getting short
shrift. Even well-designed solutions can be undermined
Garage for Sustainability22 takes the process an by time, budget, and resources constraints. Add to that
important step further, helping clients weave the sustainability imperative, and the need for a more
sustainability into the very fabric of their businesses. balanced strategic approach becomes even more urgent.
At times, organizations can find it challenging to
analyze the largest sustainability-related opportunities Business designers are in effect multilingual. They can
and problems across the enterprise. Garage for speak the language of design stakeholders, as well as
Sustainability can help an organization swiftly identify the lingua franca of sustainability, technology, and
the right set of prioritized actions to take and measure business value. And, as our research indicates, the
impact against sustainability, social considerations, C-suite is listening.
and business goals. The process involves extensive
collaboration to evaluate, refine, and focus ideas to
help to bring about quantifiable results more quickly.23

14
Action guide Business Design activation
This is the level for progress. Organizations at this stage
How do you best introduce or scale Business Design? have codified goals and are incorporating business
Think of it as a maturity curve, where organizations designers, Design Thinking, and agile ways of working into
evolve from awareness to activation, then adoption, more areas of the business. It’s an exciting step, signaling
then advancement. Each level builds on the one before a commitment to change the culture and drive innovation.
it, enabling an organization to broaden and deepen If your organization is undertaking a digital transformation,
its Business Design culture and application across its and Business Design is not yet central to your approach,
enterprise. Below, we outline how to start, based on this may be a good starting point.
where your organization currently fits on this continuum.
1. Chart a course for change. Apply a human-centric,
Business Design-focused lens to how your organization
Business Design awareness
can accelerate successful change initiatives.
This is a place of intention. It can be the entry point for
organizations where design is underutilized, siloed, or 2. Practice what you preach. Intentionally develop
mostly applied at the end of a development cycle to weekly routines, traditions, and processes that nurture
enhance appeal or usability. This is where organizations a culture of innovation, collaboration, and positive
acknowledge that broadening the definition of design and intent. Invest in storytelling initiatives to socialize
embedding quality design talent in marketing, product, progress and drive advocacy.
and CX transformation could drive improved brand
differentiation and business results. To succeed at this 3. Expand your design talent. Accelerate deploying
level, businesses need to assess, define, and clearly designers in all domains of your enterprise to create
articulate goals and competitive advantages. consistent approaches to problem solving. Create
teams that are diverse and inclusive.
1. Look forward and look back. Engage in scenario-
mapping and back-casting exercises, critical for
identifying how to better use Business Design in
day-to-day operations.

2. Envision your North Star. Every business needs a

vision that attracts future generations of customers
and employees, discovers business models for growth,
and incorporates sustainability and social goals.
Evaluate how Business Design can help your organization
create its North Star.25

3. Imagine future-proofing your business. As you

plan for the next 3 to 5 years, do so with an invigorated
appreciation for the unknown. Consider how Business
Design can, conceptually, help you anticipate change
and be better positioned to respond.

15
Business Design adoption Business Design advancement
This is where organizations grow cultural endorsement and This is the road to excellence. It’s where an organization
socialization. This is for organizations that have worked to embraces the ongoing pursuit of consistent design
embed Business Design practices and now need to support eminence across operations, dimensions, and functions.
designers by introducing DesignOps (an approach inspired At this level, organizations are creating a thriving corporate
by DevOps). DesignOps can streamline workflows through culture of relentless optimization that serves as a brand
team enablement, craft development, collaboration and differentiator, attracting customers, employees, and
engagement, and business value measurement. business partners.

1. Firm up the foundation. Establish a comprehensive, 1. Create a continuous value loop. Decision makers and
formal approach to governing how teams work together, problem solvers across the enterprise need to look for
how work gets done, and how the work creates the improvement opportunities. They do this by evaluating
necessary infrastructure for sustainable growth and internal workflows through human-centered design
cultural transformation. research and process-mining tools. Then they introduce
new concepts for intelligent workflows, AI automation,
2. Create infrastructure and processes. To monitor platform optimization, and talent strategy, and reinvest
performance and funnel insights back to the teams for cost savings to further innovation.
continuous iteration, you need access, consistency,
dependability, and speed. 2. Keep asking how to make things better. Humbly
accept that improvements can always be made.
3. Modernize measurement. Develop metrics to create Demands are continually evolving and no product,
and track experiences that proactively meet the needs service, or experience—no matter how well-designed—
of customers and employees. This level of iterative will satisfy everyone.
design is enabled by sophisticated data science and
AI-assisted cloud platforms. 3. Design for trust. Intentional design that signals empathy
and understanding for virtually all cohorts—customers,
employees, stakeholders, partners, and society—can
help build trust. Elevate design to a priority across your
ecosystem. Share your design culture with others.

16
About the authors
Matt Candy Carolyn Heller Baird
Global Managing Partner, IBM iX Global Research Leader for Customer
Customer Transformation Service Experience and Design at the IBM
Line Leader, IBM iX, IBM Consulting Institute for Business Value
https://www.linkedin.com/in/mattcandy/ linkedin.com/in/carolyn-baird-0478083
[email protected] [email protected]

Matt has over 24 years of experience working on complex Carolyn leads research on topics impacting customer
multi-channel business transformation engagements for experience, marketing, and digital transformation. She also
clients across multiple industries around the world. Matt’s covers workplace issues, such as enterprise experience
iX team of creators and makers work at the intersection of and gender equity. Her work spans more than 20 years as
strategy, creativity, and technology to help clients an experience strategy consultant.
transform experiences for their customers, citizens,
employees, and partners.

Billy Seabrook
Global Chief Design Officer, IBM iX
IBM Consulting
linkedin.com/in billy-seabrook-7443273
[email protected]

Billy has over 25 years of experience creating omnichannel

customer experiences for leading brands across all
industries. He leads teams in over 50 studios to transform
client businesses through human-centered design and
innovative technology.

17
IBM Institute for Related reports
Business Value Ablett, Justin, Ed Forman, Scott Wellwood, Carolyn Heller
Baird, Anthony Marshall. “Optimize your DXP capabilities:
The IBM Institute for Business Value develops fact-based,
Experience Leaders are prioritizing digital transformation
strategic insights for senior business executives on critical
for CX.” IBM Institute for Business Value. July 2021.
public and private sector issues.
https://ibm.co/optimize-dxp

For more information Foster, Mark. “The Virtual Enterprise: The Cognitive
Enterprise in a virtual world.” IBM Institute for Business
To learn more about this study or the IBM Institute for Value. May 2021. http://ibm.co/virtual-enterprise
Business Value, please contact us at [email protected].
Follow @IBMIBV on Twitter, and, for a full catalog of Seabrook, Billy, Carolyn Heller Baird. “From customer
our research or to subscribe to our monthly newsletter, experience to enterprise experience: Six leading practices
visit: ibm.com/ibv. to activate your CX North Star.” IBM Institute for Business
Value. November 2019. https://ibm.co/cx-north-star

18
Research methodology Our goal was to assess the extent that organizations have
elevated design beyond the aesthetic to serve as a core
In 2021, the IBV, in cooperation with Oxford Economics, principle for doing business. Are organizations adopting
surveyed 2,000 executives, managers, and design Design Thinking enterprise wide? Are they weighing the
professionals who lead, or significantly influence, the business value of their design decisions and the impact on
creation of products, services and experiences for sustainability or other social issues? How do organizations
customers and/or employees. Survey participants came that have deeply embraced the tenets of Business Design
from the C-suite and a variety of business functions. differ from others in our sample?
11 industries were represented across 11 countries/
Data findings are based on classification analysis,
regions (see Figure 9). Annual revenues ranged from
maximum difference scaling (MaxDiff) analysis — a form
$500 million to $170 billion.
of choice modeling — as well as financial analyses based
on average revenue growth for the last two fiscal years.
All data is self-reported.
Figure 9

Our research’s reach

Industries and regions represented in the study survey

10% | Travel/Transportation Automotive | 10%

5% | Media/Entertainment
Banking/Financial Markets | 10%
5% | Telecommunications

10% | Retail 11 Consumer Products | 10%

Industries

10% | Insurance Energy/Utilities | 10%

10% | Healthcare/Life Sciences Government | 10%

Australia/New Zealand | 6%
Brazil | 5%
20% | US
Canada | 5%

12% | UK
11 China | 16%
Countries/Regions

4% | Nordics
Germany | 7%
4% | Middle East
India | 7%
14% | Japan

19
Notes and sources 14 For more information about process mining and execu-
tion-management tools, go to: https://www.ibm.com/ser-
1 “2021 CEO study: Find your essential—How to thrive in a vices/celonis
post-pandemic reality.” IBM Institute for Business Value.
15 Foster, Mark. “The Virtual Enterprise: The Cognitive Enter-
February 2021. https://www.ibm.com/thought-leadership/
prise in a virtual world.” IBM Institute for Business Value.
institute-business-value/c-suite-study/ceo
May 2021. http://ibm.co/virtual-enterprise
2 “Sustainable Product Policy.” EU Science Hub: The Euro-
16 Ibid.
pean Commission’s science and knowledge service. Last
updated June 23, 2021. https://ec.europa.eu/jrc/en/re- 17 Kraaijenbrink, Jeroen. “What The 3Ps Of The Triple
search-topic/sustainable-product-policy Bottom Line Really Mean.” Forbes. Dec 10, 2019. https://
www.forbes.com/sites/jeroenkraaijenbrink/2019/12/10/
3 Based on IBM client information
what-the-3ps-of-the-triple-bottom-line-really-
4 Liedtka, Jeanne. “Why Design Thinking Works.” mean/?sh=69b11f5f5143
Harvard Business Review. September-October 2018.
18 Ibid.
https://hbr.org/2018/09/why-design-thinking-works
19 Gupta, Sachin, Sashank Yaragudipati, Jane Cheung, and
5 Bartkowski, Kim. “80% of sustainability and environmental
Chris Wong. “The last call for sustainability: An urgent
impacts of a product are locked in at the design phase.”
growth agenda for consumer products and retail.” IBM In-
LinkedIn. August 3, 2021. https://www.linkedin.com/
stitute for Business Value. August 2021. https://www.ibm.
pulse/80-environmental-impacts-product-locked-de-
com/thought-leadership/institute-business-value/report/
sign-phase-kim-bartkowski/
sustainability-consumer-products-retail
6 “Advancing Racial Equity in Design: A Field Guide for Man-
20 Kraaijenbrink, Jeroen. “What The 3Ps Of The Triple
agers and Leaders.” ibm.com. 2021. https://www.ibm.com/
Bottom Line Really Mean.” Forbes. Dec 10, 2019. https://
design/racial-equity-in-design/files/Advancing-Racial-Eq-
www.forbes.com/sites/jeroenkraaijenbrink/2019/12/10/
uity-in-Design_Field-Guide-for-Managers-and-Leaders.pdf
what-the-3ps-of-the-triple-bottom-line-really-
7 Based on IBM client information mean/?sh=69b11f5f5143

8 To learn more about IBM Garage, go to: https://www.ibm. 21 “IBM Garage Methodology.” ibm.com. Accessed August 13,
com/garage 2021. https://www.ibm.com/garage/method/

9 Gupta, Sachin, Sashank Yaragudipati, Jane Cheung, and 22 For more information about IBM Garage for Sustainability
Chris Wong. “The last call for sustainability: An urgent go to: https://www.ibm.com/impact/sustainability
growth agenda for consumer products and retail.” IBM
23 Tugnait, Sanjay. “Sustainability: core of your business
Institute for Business Value. August 2021.
strategy” IBM Business Operations Blog. May 5, 2021.
10 Ibid. https://www.ibm.com/blogs/internet-of-things/sustain-
ability-core-business-strategy/
11 “COVID-19 and the future of business: Executive epipha-
nies reveal post-pandemic opportunities.” IBM Institute for 24 Gupta, Sachin, Sashank Yaragudipati, Jane Cheung, and
Business Value. September 2020. https://ibm.co/covid-19- Chris Wong. “The last call for sustainability: An urgent
future-business growth agenda for consumer products and retail.” IBM In-
stitute for Business Value. August 2021. https://www.ibm.
12 Foster, Mark. “The Virtual Enterprise: The Cognitive Enter- com/thought-leadership/institute-business-value/report/
prise in a virtual world.” IBM Institute for Business Value. sustainability-consumer-products-retail
May 2021. http://ibm.co/virtual-enterprise
25 Seabrook, Billy and Carolyn Heller Baird. “From customer
13 Ibid. experience to enterprise experience.” IBM Institute for
Business Value. November 2019. https://www.ibm.com/
thought-leadership/institute-business-value/report/cx-
north-star
20
About Research Insights © Copyright IBM Corporation 2021

IBM Corporation
Research Insights are fact-based strategic insights for New Orchard Road
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