{"id":9432,"date":"2019-07-29T16:14:29","date_gmt":"2019-07-29T20:14:29","guid":{"rendered":"https:\/\/blog.brainstation.io\/?p=9432"},"modified":"2020-05-19T12:05:54","modified_gmt":"2020-05-19T16:05:54","slug":"five-industries-that-have-been-lifted-by-design-thinking","status":"publish","type":"post","link":"https:\/\/brainstation.io\/blog\/five-industries-that-have-been-lifted-by-design-thinking","title":{"rendered":"Five Industries That Have Been Lifted by Design Thinking"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In the 45-plus-years since IBM CEO Thomas John Watson Jr. presciently said \u201cgood design is good business,\u201d design thinking has become a pillar principle of most successful companies around the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Design Management Institute\u2019s Design Value Index, design-driven companies have maintained a significant stock-market advantage, outperforming the S&amp;P 500 by 211 percent between 2005 and 2015.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ve covered <\/span><a href=\"https:\/\/brainstation.io\/blog\/3-ways-design-thinking-can-become-part-of-your-business\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">how to incorporate design thinking into your business<\/span><\/a><span style=\"font-weight: 400;\">. Here are some examples of how design thinking has lifted companies across a diverse array of industries.<\/span><\/p>\n<div class=\"lead-grid-container\">\n<div class=\"lead__card\">\n<div class=\"lead__image\"><img decoding=\"async\" class=\"hide--mobile\" src=\"https:\/\/brainstation.io\/blog\/wp-content\/uploads\/2020\/03\/Design3.jpg\" alt=\"Icon\"><\/div>\n<div class=\"lead__content\">\n<p id=\"lead__heading\" class=\"heading--4\">Become a UX Designer in just 12 weeks!<\/p>\n<p class=\"lead__description\">BrainStation&#8217;s <a href=\"https:\/\/brainstation.io\/course\/online\/user-experience-design?utm_source=Blog&amp;utm_medium=BlogPost&amp;utm_campaign=blogLead\" target=\"_blank\" rel=\"noopener noreferrer\">User Experience Diploma Program<\/a> is a full-time, 12-week program that equips professionals with the skills and experience to start a new career in design.<\/p>\n<p id=\"lead__button--margin\"><a id=\"lead__button--hover\" class=\"lead__button\" href=\"https:\/\/brainstation.io\/book-call\/user-experience-immersive?utm_source=Blog&amp;utm_medium=BlogPost&amp;utm_campaign=blogLead\" target=\"_blank\" rel=\"noopener noreferrer\">Speak to a Learning Advisor<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><b>The Hospitality Industry<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">You could travel the globe and still be hard-pressed to find a company with a deeper commitment to design thinking than Airbnb.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two of the startup\u2019s three Co-Founders are Rhode Island School of Design alumni, and the company\u2019s experimental product development team, Samara, has even seen Airbnb branch beyond hospitality into the realm of urban planning.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company empowers its employees to get creative by testing out small new changes that can sometimes lead to the development of major new features. In fact, during the onboarding process, Airbnb suggests new employees ship new features on their very first day to encourage creativity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The results can be surprisingly profound; once, a new designer was asked to reevaluate the \u201cstar\u201d function that allowed users to earmark properties on a wishlist. The designer suggested changing the star to a heart \u2013 and that simple switch <\/span><a href=\"https:\/\/firstround.com\/review\/How-design-thinking-transformed-Airbnb-from-failing-startup-to-billion-dollar-business\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">increased engagement by over 30 percent<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, Co-Founder Joe Gebbia \u2013 who serves as Head of Samara \u2013 says that it was design thinking that helped the company grow from a struggling startup to a $38 billion company (that is also one of the most-anticipated IPOs on the horizon).&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe good news is that there has been an incredible shift in investors\u2019 mindset on the value of design,\u201d he <\/span><a href=\"https:\/\/fortune.com\/2017\/12\/22\/airbnb-joe-gebbia\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\">. \u201cAnd so even the people that leaders are sometimes beholden to, they are now getting it in a way that 10 years ago, trust me, they didn\u2019t. Because we met with them and they rejected us, because they didn\u2019t understand the value of design.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cBut I feel like we, along with many of our contemporaries, have proven that design is a differentiator, that design can help you expand your business, that design is a critical component.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Airbnb\u2019s more traditional rivals in the hospitality industry might not have been quite as fast to incorporate design thinking into their core philosophies, but they\u2019re making progress now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2011, Hyatt Hotels connected with the Design School at Stanford University to explore how human-centered innovation concepts could improve the organization. They sent senior company leadership to Stanford\u2019s three-day course, \u201cHuman Centered Design,\u201d and, as the company\u2019s vice-president of global innovation Jonathan Frolich <\/span><a href=\"https:\/\/www.greatplacetowork.com\/resources\/blog\/design-thinking-and-the-transformation-of-hyatt-s-culture\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">explained<\/span><\/a><span style=\"font-weight: 400;\">, out of that came a new focus on creating caring experiences for guests and employees alike. They also turned 10 of their properties into innovation labs, where they experimented with lighting, furniture, and rooms.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And Crowne Plaza teamed with the design firm IDEO to improve the experience of its business travelers. The outcome? Ignition, a free-to-use new meeting and working experience housed in Crowne Plaza lobbies that includes meeting spaces, food, and beverage options, full service, and digital features. Also included are single-person \u201cPods,\u201d \u201cNooks,\u201d and \u201cHuddles\u201d that seat four, or a 10-person \u201cApartment\u201d bookable by the hour. The spaces even offer food that is specifically intended to be eaten in meetings \u2013 in other words, non-messy meals that can be eaten with one hand that arrive on square plates meant to fit neatly next to laptops.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, NH Hotel Group \u2013 which operates more than 350 hotels in 28 countries \u2013 recently conducted a 24-hour \u201cdesign thinking hackathon\u201d as part of its management development program, another example of a company ensuring that all levels of leaders can learn the importance of design thinking.<\/span><\/p>\n<h2><b>The Automotive Industry<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When it comes to an openness and flair for big, bold, and even sometimes bizarre ideas, few can match the audacity of Elon Musk and Tesla Motors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So it\u2019s not surprising that the company that made electric cars cool has been a longtime champion of the importance of design. Its industry-shifting innovations are many: showrooms in malls that resemble Apple stores rather than traditional dealerships; cars that function almost like software, with system updates beamed aloud for drivers; and, of course, sleekly designed vehicles that look like they were dropped from the future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Much of that magic owes to Franz von Holzhausen, a graduate of the Art Center College of Design\u2019s transportation design program. When he joined Tesla in 2008, the company\u2019s future didn\u2019t look particularly promising. His mission was to create a \u201c<\/span><a href=\"https:\/\/www.businessinsider.com\/how-tesla-designs-cars-to-look-so-good-2017-11\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">world-class design competency<\/span><\/a><span style=\"font-weight: 400;\">\u201d for Tesla, starting from scratch to replace the single vehicle the company sold at the time \u2013 the Roadster \u2013 with an all-new design.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The sleek and luxurious-looking Model S was revealed in 2011 and went on sale the following year. Since then, its design has barely changed. Meanwhile, the Model 3 was widely hailed upon its 2017 unveiling as another triumph, with its minimalist interior \u2013 featuring only an LCD touchscreen \u2013 gorgeous exterior, and high safety scores. In February 2019, the Model 3 passed the Chevrolet Volt to become the all-time best-selling electric car in the U.S.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&nbsp;<\/span><span style=\"font-weight: 400;\">And to von Holzhausen, the car\u2019s design is crucial to its appeal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c(The car had to be) beautiful and alluring, like a moth attracted to a flame,\u201d he <\/span><a href=\"https:\/\/www.latimes.com\/business\/autos\/la-fi-hy-tesla-design-chief-20180502-story.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\">. \u201cYou\u2019re drawn to it although you don\u2019t know anything about it.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even so-called \u201ctraditional\u201d car companies are prioritizing design thinking.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Look no further than Ford, which hired Designer Jim Hackett as CEO. He made headlines by <\/span><a href=\"https:\/\/www.businessinsider.com\/how-ford-ceo-jim-hackett-is-changing-company-2018-6\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">announcing<\/span><\/a><span style=\"font-weight: 400;\"> his intention to use design thinking to keep the 100-plus-year-old automaker relevant. Among their plans, the company announced a billion-dollar-plus project to transform the dilapidated Michigan Central Station and make it the centerpiece of a local revitalization.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cDesign thinking is about addressing a number of layers in a problem,\u201d he said. \u201cWe can improve the environment and get vehicles to orchestrate and harmonize.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, Audi and Hyundai are among the automakers to recently open spiffy new design studios.<\/span><\/p>\n<h2><b>The World of Retail&nbsp;<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">At Swedish furniture giant Ikea, design is obviously integral to the appeal of the company\u2019s products and stores \u2013 but it\u2019s also deeply intertwined with their ethical and environmental mission statement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As outlined in their annual <\/span><a href=\"https:\/\/preview.thenewsmarket.com\/Previews\/IKEA\/DocumentAssets\/535135.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">sustainability report<\/span><\/a><span style=\"font-weight: 400;\">, all of Ikea\u2019s products are designed according to the five dimensions of their \u201cDemocratic Design\u201d principle: form, function, quality, sustainability, and affordability. The company even defines its nine principles of \u201ccircular design,\u201d where goals include designing for an emotional connection, designing for an expected lifespan, and designing for adaptability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, the company clearly understands a core feature of design thinking: storytelling.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s like with people, the more you know each other the more attached you are. It\u2019s the same with design,\u201d <\/span><a href=\"https:\/\/ikea.today\/maria-on-weaving-stories-with-design\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> creative leader Maria O\u2019Brian. \u201cThe story behind a product can be fundamental in the decision in keeping something or letting go.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Design thinking is also assuming a more prominent role in fashion. Take Nike, whose CEO Mark Parker began with the company in 1979 as a footwear designer and product tester.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, the company has a team of more than 1,000 Designers. They also remain innovative and experimental with design. The company partnered with DreamWorks to build a 3D digital design system and its <\/span><a href=\"https:\/\/www.nike.com\/nike-by-you\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Nike By You Studio<\/span><\/a><span style=\"font-weight: 400;\">, which uses augmented reality, object tracking, and projection systems to allow users to make custom shoes they can then pick up just an hour later, has won over customers with its \u201clive-design experience.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe intention of the project is to bring to life the collaborative design experience that we offer our athletes,\u201d <\/span><a href=\"https:\/\/news.nike.com\/news\/nike-makers-studio\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> Mark Smith, VP of Innovation Special Projects. \u201cThey love products that tell their story, so we wanted to combine that idea with a new process of live design and manufacturing that allows our guests to come into the space, work collaboratively with us, and leave with a special product in less time than ever before.\u201d<\/span><\/p>\n<div class=\"lead-grid-container\">\n<div class=\"lead__card\">\n<div class=\"lead__image\"><img decoding=\"async\" class=\"hide--mobile\" src=\"https:\/\/brainstation.io\/blog\/wp-content\/uploads\/2020\/03\/Design3.jpg\" alt=\"Icon\"><\/div>\n<div class=\"lead__content\">\n<p id=\"lead__heading\" class=\"heading--4\">Learn design skills to boost your career \u2013 from home!<\/p>\n<p class=\"lead__description\">BrainStation offers <a href=\"https:\/\/brainstation.io\/online-live?utm_source=Blog&amp;utm_medium=BlogPost&amp;utm_campaign=blogLead\" target=\"_blank\" rel=\"noopener noreferrer\">Online Live Certificate Courses<\/a> in UX design, UI design, and design thinking. Attend live classes and interact with peers and expert Instructors from anywhere in the world.<\/p>\n<p id=\"lead__button--margin\"><a id=\"lead__button--hover\" class=\"lead__button\" href=\"https:\/\/brainstation.io\/book-call?utm_source=Blog&amp;utm_medium=BlogPost&amp;utm_campaign=blogLead\" target=\"_blank\" rel=\"noopener noreferrer\">Speak to a Learning Advisor<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><b>The Banking Industry<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The financial sector isn\u2019t always associated with free-thinking problem-solving, but in fact several of the world\u2019s biggest banks have come to understand that design thinking makes sense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2004, Bank of America asked IDEO to look at how to inspire people to open bank accounts, and after their research, IDEO\u2019s team came up with a project that would meet the needs of people who were having trouble taking control of their finances.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The result was the Keep the Change Savings Program. Essentially, the program allows customers to round every purchase up to the nearest dollar and deposit the difference in a savings account.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The project was a hit \u2013 in fact, of all new customers, 60 percent enroll in the program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThere was an almost unexpected and very emotional effect from this new service\u2026 people who previously never had savings suddenly did,\u201d <\/span><a href=\"https:\/\/www.designbetter.co\/design-thinking\/empathize\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> Faith Tucker, Senior Vice-President and Product Developer at Bank of America during the project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt wasn\u2019t the account that mattered; even a small amount of money in their savings account gave them a sense of power and control over their finances.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Others in the industry are similarly shifting their emphasis to design. Capital One acquired design firms Adaptive Path and Monsoon, then rolled out a series of new digital features, including an emoji-enabled chatbot and GPS-tracked transaction histories, and in 2018 the company launched a 42,000-square-foot Innovation Center complete with an experience design research lab. And JPMorgan Chase hired former Yahoo design executive Tim Parsey then soon afterward updated its app with features meant to improve the mobile banking experience by weaving in local imagery.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c(We) wanted to create an experience that starts (with) emotion,\u201d Chase\u2019s Digital Chief Gavin Michael <\/span><a href=\"https:\/\/www.americanbanker.com\/news\/first-look-chase-app-adds-features-to-humanize-mobile-banking\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\">. \u201cWe\u2019re humanizing the user experience.\u201d<\/span><\/p>\n<h2><b>The Food and Beverage Industry<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When Indra Nooyi took over the role of PepsiCo\u2019s CEO, she saw a need to shake up the sagging soda company \u2013 whose top brands were losing market share \u2013 and she <\/span><a href=\"https:\/\/hbr.org\/2015\/09\/how-indra-nooyi-turned-design-thinking-into-strategy\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> design thinking was at the core of her strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One unorthodox method she employed was to give her direct reports a camera and an empty photo album she wanted them to fill with anything that represented good design. She was unimpressed by the results, and found that any time she tried to talk about design, her employees thought she was talking about packaging.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It was time to hire a Designer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s much more than packaging,\u201d she <\/span><a href=\"https:\/\/hbr.org\/2015\/09\/how-indra-nooyi-turned-design-thinking-into-strategy\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\">. \u201cWe had to rethink the entire experience, from conception to what\u2019s on the shelf to the postproduct experience.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cNow,\u201d she added, \u201cour teams are pushing design through the entire system, from product creation, to packaging and labelling, to how a product looks on the shelf, to how customers interact with it.\u201d&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s sales grew 80 percent during the 12 years she served as CEO. And PepsiCo continues to prioritize design. Consider the award-winning rollout of its LIFEWTR premium bottled water brand, which launches a new series every few months featuring the work of new artists. In just over a year, the brand was <\/span><a href=\"https:\/\/www.pepsico.com\/news\/stories\/lifewtr-is-truly-a-work-of-art\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">valued<\/span><\/a><span style=\"font-weight: 400;\"> at $200 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Design has always been an essential part of Starbucks\u2019 success as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although many of us probably think of the company\u2019s growth as being continuously upward, Starbucks had to close around 600 shops in 2008 after the economy dipped and the company changed senior leadership.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After polling their customers, they discovered that many now viewed the chain as being ubiquitous in a less-than-flattering way. The company realized they needed their stores to better reflect their local environments, which posed a problem considering their Designers were all based at their Seattle headquarters.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe couldn\u2019t design locally relevant stores, stores that would resonate with our customers, from Seattle,\u201d <\/span><a href=\"https:\/\/www.wired.com\/2014\/01\/starbucks-big-plan-to-be-your-cozy-neighborhood-coffee-shop\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> Bill Sleeth, the company\u2019s Vice-President of Design for the Americas.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company now has Designers stationed around the world. They\u2019ve also launched a series of impressive <\/span><a href=\"https:\/\/www.starbucks.com.cn\/design-studio\/en\/stores\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">design studios<\/span><\/a><span style=\"font-weight: 400;\"> to further show their commitment to design innovation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe push for innovation and design is just starting,\u201d Sleeth said. \u201cThis is the tip of the iceberg.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From banking to retail and everything in between, here are some examples of how design thinking has lifted companies across a diverse array of industries.<\/p>\n","protected":false},"author":7,"featured_media":9434,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[595,336],"tags":[632,111,260,1015,631,89],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Five Industries That Have Been Lifted by Design Thinking | BrainStation\u00ae Blog<\/title>\n<meta name=\"description\" content=\"Wondering if design thinking is relevant to you? 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