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Brandwave-logo-6.png |DESIGNING THE FUTURE | OCT 21
28.10.2021
​It’s been said that “the best way to predict the future is to create it.” As global forces like the rise of emerging economies and rapid digitization change how we live and work, creating a future where everyone can thrive requires radical new ways of looking at the world.
“This kind of thinking is centered around humans. It works to deeply understand our needs and motivations, and then creates solutions that improve lives,” says Hugo Sarrazin, a McKinsey senior partner and global leader of our Design Practice. “That is what design is all about.”

More than 100 chief design officers and senior design leaders from a range of industries around the world gathered last month in Stockholm’s Nobel Prize hall for McKinsey’s inaugural Global Design Leader Summit. The meeting was the first gathering of a new community of top design talent, who shared how their craft might help tackle some of the most pressing challenges facing their organizations, their communities, and in turn society at large.

Here they celebrated the history and impact of design, tied to the 50th anniversary of Veryday, now part of McKinsey Design, and discussed where they see the future of design and its leadership.

“It’s no longer about making things pretty,” said Logitech president and CEO, Bracken Darrell. “That was the first wave of design. Then came the second where design focused on experiences and human needs. Building on these is the third wave, where we’re designing for everything—every single problem you look at.”

According to Tera Allas, McKinsey’s director of research and economics, design plays a critical and perhaps surprising role in shaping today’s global forces, like poverty and climate change. “When it comes to the adoption of tech for good, it has to come from a user perspective,” she says. “That kind of human centricity is something so ingrained in designers.”

Some examples include buildings’ uses of IoT-enabled predictive systems that have lowered electricity consumption and costs by 30 percent, or remote health monitoring through wearables that has led to a 40 percent reduction in hospital readmission rates.

Attendees agreed that while design is well-suited to address social and environmental issues, few understand the scope of what might be considered design. “Objects, artifacts, services, of course,” says Jennifer Kilian, a McKinsey partner and leader in our Digital and Design Practices, “but it’s also redesigning how companies, governments, and public sector organizations work.”

Take, for example, the power and importance of trust for institutions, such as government. People are nine times more likely to trust an agency if they’ve had positive experiences with their services. How easy are they to access, how smooth is the process? These are design questions.

Such questions arose as attendees broke out into groups to develop prototypes for each of the UN’s 17 Sustainable Development Goals. Some of the ideas that emerged during this session included creating a generosity index for organizations and helping companies see the benefit of disrupting their own businesses.

“Business values and societal and environmental values are inseparable,” said Andrew Morlet, CEO of the Ellen MacArthur Foundation. And when it comes to measuring the value of design, our research shows the positive effects it has on financial, societal, and environmental performance.

But in order for such value to be realized, design needs to be fully embedded throughout every part of an organization. While our research shows that design is more than a department, many attendees shared the struggles they face in feeling siloed within their own companies.

Many in the room agreed that it can be lonely being the chief design officer inside a company. Unlike designers in an agency, in-house design leaders may find themselves without peers and constantly trying to motivate and protect their teams. Without a C-suite that has bought into the value of design, the day-to-day can be challenging.

Hugo emphasized the importance of building partnerships both within and between organizations and institutions. Open communication and shared experiences can help dismantle preconceptions and foster a common language and understanding of design’s value among all executives.

“Designers are bridge builders,” adds Hugo “and so too was this summit: a place to build bridges.” Through this community, new bonds could firm that cross industries, where lessons from great successes and failures and insights into radical transformations can be translated and built on. “Hopefully we will see more of these types of connections to really create a better future for all.”
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28.10.2021
The Coronavirus pandemic has changed everything. Its impact on global wellness and the economy has forced organizations in every industry to flex and evolve, both in real-time and in the long-term. In this collection of ideas, tips, thoughts, and strategies, we explore how design can play a role in making the world a healthier place.
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28.10.2021
How large Organizations are on top of their game disrupting other industries? The answer is simple: design thinking is what has enabled them to outperform others.

We are witnessing a fascinating phenomenon in recent years. Fewer and fewer companies are getting the biggest piece of the earnings pie while spreading their influence worldwide. Their visionary ideas and innovative solutions are winning the hearts of customers across borders and gaining billions of dollars annually. In the USA alone about 50% of all profit generated by public companies now goes to only 30 organizations. In comparison, it took 109 companies to accomplish the same feat back in 1975. 
So, how is it that large organizations like Apple, Microsoft, Samsung, PepsiCo, Nike, Toyota are on the top of their game, disrupting entire industries? How can a financial institution, like Bank of America, be ranked the 9th most profitable organization in the world while there is a withdrawal of using banking services? The answer is simple - design thinking is what has enabled them to outperform other companies. More and more organizations are seeing the value of implementing the iterative method into their production process and service creation. 
These companies put their clients and their needs and desires in the center of the creative process. They have realized that the traditional model of making business where you design for, and not with the customer, is failing. Across industries around the world, attention is shifting to design thinking as an approach for unleashing creativity and innovation in organizations. 
Nowadays the future of a company is in the hands of its users. If the customers’ needs are unmet, those organizations are doomed. That is why forward-thinking companies are now minimizing the risk of launching a product that people won’t like by rapidly creating prototypes via the design thinking process. Afterward, they get feedback from their customers to make the products better before they even enters the market. This saves a lot of effort, time and money in the long run. 
Here are some of the most profitable organizations that use design thinking for creating innovative solutions:

1. Toyota
Toyota’s revenue for the 4th quarter of 2019 was $71.047 billion with a 7.97% increase year-over-year, according to microtrends. The company completely redesigned the customer contact center using design thinking. It also brought multidisciplinary teams to work on its various projects. Looking to the future, Toyota invested $500 million in Uber in August 2018. The two companies announced their intention to bring pilot-scale deployments of automated ridesharing vehicles to the Uber network in 2021. A year later Toyota, DENSO and the SoftBank Vision Fund (SVF) shook their hands-on investing $1 billion more in Uber which now has a global market value of $72 billion and is available in 80 countries worldwide.
Recently Toyota announced it will transform a 175-acre site in Japan into a “prototype city of the future”. The company has the intention to test autonomous vehicles, innovative street design, smart home technology, and new mobility products on a full-time population of 2,000 people, including Toyota employees and their families. The residencies would be equipped with smart home technology, such as in-home robotics to assist with daily living. The homes will use sensor-based AI to check occupants’ health, take care of basic needs and enhance daily life, creating an opportunity to deploy connected technology with integrity and trust, securely and positively. 

2. Apple
At the end of October last year some rankings considered Apple to be the second most profitable company worldwide, after the oil giant Saudi Aramco. The organization announced its financial results for the 4th quarter of 2019 - its revenue was $64 billion. According to an analysis published in the Investor’s Business Daily, it will be the most profitable tech company in 2020 with an expected growth of 11.6% or $58.1 billion net income. 
It’s not a secret that what drives the processes in the company is the end-users and possibility to give people the opportunity to do things they were not able to do before. In order to dig deep into what people desire and developing products that meet those needs, Apple uses design thinking. Building prototypes and testing them with the end-users is of grave importance to the company. For instance, Apple's operating system was built by focusing on what consumers wanted and then figuring out how to achieve it on the technical side. From the smallest detail of Apple packaging to what the company calls its “largest product”, the user experience is what the company focuses on most. 

3. Microsoft 
Microsoft is one of the leading giants in the technology market, which ended the 4th quarter of 2019 with a revenue of $33.055 billion - 13.65% increase year-over-year. It is expected to be the second most profitable tech company in the world in 2020 with 7.6% growth or $42.9 billion net income, according to Investor’s Business Daily. In time Microsoft was able to transform itself from a technology-centric to a user-centric company. Design thinking entirely reshaped Microsoft’s products. The method now plays an essential role in solving the users’ problems and addressing their needs in the production process. 
Nowadays the tech giant hopes that by researching the needs of underserved communities it can improve the user experience for everyone. The company uses disability as an engine for innovation, because “no matter what their limitations, humans have such a relentless drive to communicate that they’ll invent new ways to do so, in spite of everything”. Their mission is to empower every person on the planet. Delivering new value and new solutions with radical empathy at the core of their creative process. “It’s our responsibility as designers to account for the impact each feature release has on our customers’ lives. The world is fundamentally shifting, and for us, leading the industry means “leading with empathy,'' says Microsoft designer Albert Shum. 

4. Samsung Electronics
At the end of last year, Samsung electronics were considered to be the 4th most profitable company in the world, making $109.3 million a day or $1 265 per second. It has a shared history of collaboration with the design company IDEO since the early 1990s. The companies have worked together on 50+ projects, ranging from a series of conceptual multimedia devices to industry-changing monitors, TVs, laptops, mobile phones and interfaces, and mobile platform strategies. By putting users at the center of the process, and beginning to understand their needs and emerging behaviors, Samsung found it could not only satisfy existing customers but also begin to anticipate market and society shifts. 
Later on, Samsung’s leadership decided to build design competency in-house rather than import it. It chose to create a committed, resourceful corps of designers who figured out that they could manage the tensions and overcome internal resistance by deploying the same tools that they use in pursuing innovation - empathy, visualization, and experimentation in the marketplace, points out an article in Harvard Business Review.

5. PepsiCo
In the 4th quarter of 2019 PepsiCo's revenue was $17.188 Billion, with a 4.26% increase year-over-year. The company was struggling until Indra Nooyi came along as a CEO, and during her time the company’s sales grew by 80 percent. The reason is that design thinking was at the core of Nooyi’s tremendously successful run. She believed that the company needed to rethink its innovation process and postproduction experience for the customers. Nooyi appointed Pepsi’s first chief design officer, Mauro Porcini in 2012, and together they created a culture in which customer-centered design is the focus of every decision made at the company. 
She stepped down from the role of CEO in 2018, but her legacy of design thinking lives on. Design thinking is at the center of everything Pepsi does, from product creation and packaging, to how it looks on the shelf, and finally to how customers interact with the product. One example is the Pepsi Spire - the company’s new touch screen fountain machine that talks to consumers and invites them to interact with it. It tracks purchases and makes suggestions based on previous consumption. It’s a whole new way for customers to experience Pepsi, and it came about through design thinking.

6. Nike
What comes to mind when we think of Nike is innovation, top of the line products, and the possibility for personalization of every product. According to Forbes, Nike reported revenue of $10.2 billion in the 4th quarter of 2019, marking a growth of 4% over $9.8 billion in the 4th quarter of 2018. In over a decade since Mark Parker, who until recently served the company as a CEO, the organization's revenue has more than doubled. The main reason is that he was passionate about innovation in design and discovered the beauty of working with multidisciplinary teams. “We’re lifting up rocks to find new solutions to problems, and we’re looking in places that maybe many people aren’t looking,” Parker said in an interview.
Nike has always been at the top of their game thanks to its outstanding product design. They have realized that the center of innovation, inspiration, and design begins with their employees and customers. The company invites its employees to be a part of the process of building a better product and take a co-designer approach that ultimately leads to an unleashing of human potential. Nike also puts a huge emphasis on designing not only a product but an unforgettable and connection-building experience.

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FEATURED CASE STUDY: Introduction To Design Thinking & Service Design
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Design thinking is not just for designers. It’s a process for solving complex problems, innovating and developing strategy that puts an emphasis on understanding people, process and place. It draws upon logic, imagination, intuition, and systemic reasoning, to explore possibilities of what could be.
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by by Jeremy Gutsche
Everyone wants innovation to happen, but it’s much easier said than done. Drawing upon Jeremy Gutsche’s extensive work as a trusted advisor to Fortune 500 brands, billionaires and CEOs, Create the Future will help you break free from the traps that stand in the way of innovation and change.

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1. A Human-centered approach: understanding the person who will be using the thing you're trying to create

2. Creative and Playful Tools

3. Iterative Process

4. Collaborative Spirit

5. Prototype driven.



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