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

Bruce Nussbaum

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?