Innovation, Design, Consumer Experience--Call it a Banana But do it Because The Stock Market Will Reward You.

Posted by: Bruce Nussbaum on July 27, 2006

Dan Pink has a great column on Yahoo showing that companies using design to improve their customers’ experience have higher stock prices than those that don’t.

This is precisely what Jeneanne Rae of PeerInsight found months ago in her work. We ran a graph from PeerInsight in IN—the first issue of Inside Innovation in the INshort section of Tools and Trends. It received a great deal of attention and for the same reason that Dan’s column is getting traffic today. Innovation/design thinking/consumer experience can clearly be shown to pay off for companies. Jeneanne has a column up right now that goes into deep detail on why designing for the consumer experience pays off for companies.

Everyone is trying to find the right combination of innovation metrics to boost their innovation hit rates. It’s a very hard process. Yet we do have a metric that shows that innovation and design count. It’s called the stock price.

Back in 2005, we ran a piece off research from the British Design Council that showed British companies using design did better on the “footsie,” the FT 100 stock index, than those that didn’t.

If you had to pick five financial companies that should be on any list of what Dan calls DADI—Design as Differentiator Index—which would they be?

 

About

Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.

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