Why corporate America broke up with design
Design thinking alone doesn't determine market success, nor does it always transform business as expected.
There are a multitude of viable culprits behind this revenue drop. Robson himself pointed to the pandemic and tightened global budgets while arguing that “the widespread adoption of design thinking . . . has reduced demand for our services.” (Ideo was, in part, its own competition here since for years, it sold courses on design thinking.) It’s perhaps worth noting that, while design thinking was a buzzword from the ’90s to the early 2010s, it’s commonly met with all sorts of criticism today.
“People were like, ‘We did the process, why doesn’t our business transform?'” says Cliff Kuang, a UX designer and coauthor of User Friendly (and a former Fast Company editor). He points to PepsiCo, which in 2012 hired its first chief design officer and opened an in-house design studio. The investment has not yielded a string of blockbusters (and certainly no iPhone for soda). One widely promoted product, Drinkfinity, attempted to respond to diminishing soft-drink sales with K-Cup-style pods and a reusable water bottle. The design process was meticulous, with extensive prototyping and testing. But Drinkfinity had a short shelf life, discontinued within two years of its 2018 release.
“Design is rarely the thing that determines whether something succeeds in the market,” Kuang says. Take Amazon’s Kindle e-reader. “Jeff Bezos henpecked the original Kindle design to death. Because he didn’t believe in capacitive touch, he put a keyboard on it, and all this other stuff,” Kuang says. “Then the designer of the original Kindle walked and gave [the model] to Barnes & Noble.” Barnes & Noble released a product with a superior physical design, the Nook. But design was no match for distribution. According to the most recent data, Amazon owns approximately 80% of the e-book market share.
The rise of mobile computing has forced companies to create effortless user experiences—or risk getting left behind. When you hail an Uber or order toilet paper in a single click, you are reaping the benefits of carefully considered design. A 2018 McKinsey study found that companies with the strongest commitment to design and the best execution of design principles had revenue that was 32 percentage points higher—and shareholder returns that were 56 percentage points higher—than other companies.