Business Wire

McKinsey & Company Releases World-First Study Quantifying the Financial Value of Design to Business

Del

Today, McKinsey & Company, the trusted advisor to many of the world’s most influential businesses and institutions, released its first-ever study on the business value of design. After tracking the design practices of 300 publicly listed companies in multiple countries and industries over a five-year period, McKinsey’s study is one of the world’s most rigorous in linking the financial value of design to business.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181025005383/en/

McKinsey’s research found a correlation between design best practices and financial performance. Each company was given a single metric for its design performance: the McKinsey Design Index (MDI) score, which was based on hundreds of design actions they had taken. Those companies scoring in the top quarter of the MDI saw increased revenues and shareholder returns at nearly twice the rate of their industry peers on an annual basis. Over a five-year period, this resulted in 32 percentage points higher revenue growth and 56 percentage points higher shareholder return growth compared with industry peers.

Companies from a wide variety of industries consistently showed financial benefits from good design: from retail banking to medical devices to consumer goods. This suggests that companies that improve their design capability can improve their financial performance whether they are making physical products, digital apps, services, experiences or a combination of these things.

McKinsey’s research found that shareholder return and revenue growth differences between the fourth, third, and second quartile MDI scorers were marginal. The market disproportionately rewarded top quartile companies whose design performance truly stood out from the competition.

To better understand the design actions that unlock business value, McKinsey collected more than 2 million pieces of financial data and recorded over 110,000 design actions. Through their analysis, McKinsey uncovered the design actions that showed the strongest correlation with improved financial performance and clustered these into four sets of design actions.

“More than a feeling” embeds design analysis in the boardroom and C-Suite; “More than a product” puts the customer experience front and center; “More than a department” ensures design is every employee’s responsibility, not isolated to the design department; and “More than a phase” emphasizes design-driven iteration, testing, and learning. In order to see financial benefit, it is important for businesses to be successful in all four sets of actions.

“If you are the CEO of a company it's relatively easy to point out examples of individual products or services that have led to extraordinary value creation,” says Ben Sheppard, Partner, McKinsey & Company, London. “However it is notoriously difficult for companies to launch consistently great products and services time after time. The findings in this research show there are four sets of design actions that leaders can take to maximize their organization’s chances of designing products and services that delight customers, stand out from the crowd, and drive growth.”

The final results of the survey suggest that senior executives no longer have the option to treat design as a luxury. While design was once largely thought of as a way of making products more attractive, it is now a way of thinking: a creative process driven by the desire to better understand and meet consumer needs. The McKinsey Design Index reflects these beliefs while highlighting the power of great design—and the difficulty many companies have in achieving it.

In November, an online version of the McKinsey Design Index survey will be made available for organizations to self-assess and understand where their design strengths and opportunities lie, and the value at stake for further improvement.

To download the McKinsey Business Value of Design study, please visit www.mckinsey.com/valueofdesign

About McKinsey & Company

McKinsey & Company is a global management consulting firm, deeply committed to helping institutions in the private, public, and social sectors achieve lasting success. For 90 years, our primary objective has been to serve as our clients' most trusted external advisor. With consultants in over 120 cities in over 60 countries, across industries and functions, we bring unparalleled expertise to clients anywhere in the world. We work closely with teams at all levels of an organization to shape winning strategies, mobilize for change, build capabilities and drive successful execution.

About McKinsey Design

McKinsey Design drives client growth by delivering breakthrough products, services, customer experiences, and design-led innovation. Our approach is multi-disciplinary, combining breakthrough creativity with the analytical rigor of McKinsey to innovate at scale and speed across private, public and social sectors. McKinsey Design offers the breadth and experience of 350+ world-class designers from LUNAR Design, Veryday, and McKinsey’s homegrown digital labs. We are a diverse community of design thinkers and innovators passionate about elevating design insights and capabilities to the forefront of business decisions, impact and results.

Contact information

Camron PR
Max Tobias
max.tobias@camronpr.com
or
Amy Silver
amy.silver@camronpr.com
or
Doug Roche
doug.roche@camronpr.com
or
McKinsey & Company
Rob Mathis
Rob_W_Mathis@mckinsey.com

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Følg saker fra Business Wire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Business Wire

Visa Strengthens Commitment to Growing Digital Payments in India16.11.2018 14:33Pressemelding

Visa (NYSE: V) today announced a minority investment in BillDesk, a leading platform for online payments and bill payments in India. Visa’s investment and collaboration will help BillDesk develop new product lines for its payments and loyalty businesses and also expand its footprint into other geographies. The investment will be subject to necessary statutory approvals and is expected to have no direct bearing on Visa’s existing Indian business. “As a leading payments player in India, BillDesk has been a long time business partner to Visa. Having worked with BillDesk’s founders over the years, the Visa leadership has been consistently impressed with their vision, market knowledge and execution capabilities, as well as alignment on values. This investment further reinforces our long-term commitment to India’s digital payments growth story,” said Asia Pacific regional president, Chris Clark. “We are truly excited by this investment from the world's largest global payment network, Visa. W

Guidewire Enhances PartnerConnect Consulting Program with Addition of Product and Regional Specializations16.11.2018 13:55Pressemelding

Guidewire Software, Inc. (NYSE: GWRE), provider of the industry platform Property and Casualty (P&C) insurers rely upon, today announced the addition of specializations to its PartnerConnect Consulting program. Specializations have been added to aid insurance companies in selecting the best partner to lead or staff their Guidewire projects. Guidewire unveiled new specializations, including two which have been successfully piloted earlier this year. “Our customers will now have more clarity and information as to which partners have the proven capabilities in their chosen product and region,” said Lisa Walsh, vice president, Alliances, Guidewire Software. “Adding these specializations will also allow us to have more insight into a partner’s performance and competencies.” To earn a specialization, partners need to demonstrate skills, knowledge, and competency in a specific Guidewire product or solution by certifying staff at multiple levels (specialist and professional) through Guidewire’

Janssen receives positive CHMP opinion for ERLEADA™ (apalutamide) for patients with non-metastatic castration-resistant prostate cancer who are at high risk of developing metastatic disease16.11.2018 13:15Pressemelding

The Janssen Pharmaceutical Companies of Johnson & Johnson today announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has issued a positive opinion for apalutamide, a next generation oral androgen receptor inhibitor for the treatment of adult patients with non-metastatic castration-resistant prostate cancer (nmCRPC) who are at high risk of developing metastatic disease.2 The CHMP’s positive opinion will now be reviewed by the European Commission (EC), which has the authority to grant approval for the use of apalutamide. The CHMP’s positive opinion is based on data from the pivotal SPARTAN Phase 3 clinical study which assessed the safety and efficacy of apalutamide versus placebo in patients with nmCRPC who have a rapidly rising prostate specific antigen (PSA) level despite receiving continuous androgen deprivation therapy (ADT). The SPARTAN clinical study showed that apalutamide, when added to ADT, significantly reduced the risk

Vertex Receives European CHMP Positive Opinion for ORKAMBI® (lumacaftor/ivacaftor) for Treatment of Children with Cystic Fibrosis Aged 2 to 5 Years Old with Most Common Form of the Disease16.11.2018 12:57Pressemelding

Vertex Pharmaceuticals (Europe) Limited today announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion for ORKAMBI® (lumacaftor/ivacaftor) for the treatment of people with cystic fibrosis (CF) aged 2 to 5 years old who have two copies of the F508del mutation, the most common form of the disease. If the European Commission issues a favorable adoption of the EMA CHMP opinion for the extension of indication, lumacaftor/ivacaftor will be the first and only medicine approved in Europe to treat the underlying cause of CF for patients aged 2 to 5 years old who have two copies of the F508del mutation. “Cystic fibrosis is a chronic, progressive disease and it is important to treat early to ensure the best possible outcomes for patients,” said Reshma Kewalramani, MD, Executive Vice President, Global Medicines Development and Medical Affairs and Chief Medical Officer at Vertex. “Today’s announcement brings us one step cl

Dimension Data Global Delivery Centre (GDC) in Prague wins the ABSL 2018 Diamond Award for Business Innovation16.11.2018 08:00Pressemelding

Dimension Data, the USD 8 billion global technology integrator and managed services provider, today announced that its Global Delivery Centre (GDC) in Prague has won the 2018 ABSL Diamond award for Business Innovation. The main purpose of this centre is to provide innovative, global service delivery capabilities and deep technical expertise to support our clients. The ABSL Diamond awards recognise companies that implement innovative projects, enhancing their business and strengthening the position of the business services sector. Every year, the aim is to identify successful activities in this sector and promote best practices, ultimately encouraging and inspiring others to follow suit. The ABSL celebrates initiatives that push business services forward and stand out as exemplary projects. Bill Padfield, Group Chief Operating Officer for Transformation and Services at Dimension Data, said: “Winning another award for our Support Services is a fantastic achievement. This time the ABSL Di

FCC Grants LeoSat U.S. Market Access16.11.2018 06:00Pressemelding

LeoSat Enterprises, the dynamic young company which is launching a unique new data network comprised of a constellation of up to 108 low-earth-orbit communications satellites, has been awarded the authority by the U.S. Federal Communications Commission (FCC) to provide NGSO (non-geostationary satellite orbit) services in the United States. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181115005890/en/ LeoSat's Global Business Backbone in Space (Graphic: Business Wire) The increasing demand for business connectivity and with it, the need to move large quantities of data quickly and securely around the world, is fast outpacing the infrastructure in place to carry it. Existing networks are already carrying more than 1 Zeta Byte of traffic globally and this is set to grow exponentially. The FCC market access grant will allow LeoSat to address currently unmet demand for high-bandwidth, low-latency, high-security data transmissio