Business people in corporations and SME struggle with the notions of ‘design thinking’ & ‘design research’. Here are 8 ‘business’ figures to explain the value of Design Thinking & Design Research for organizations.

1. Dr Ekaterina Khramkova
Lumiknows
Russia
WHY
Business people in corporations and SME
struggle with the notions of ‘design thinking’
& ‘design research’. Here are 8 ‘business’
figures to explain the value of DT & DR.
THINKING
DESIGN
Version 1.0
&
DESIGN
RESEARCH

2. What are all these
‘design thinking’ /
‘design research’
about?
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 2

3. All together, it’s about
developing new products
with higher:
1. success rate &
2. speed-to-market.
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 3
Design thinking is a process
Design research is a tooling

4. 1. ABOUT SUCCESS
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 4

5. REVENUE
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 5
POSITIVE. FIGURE №1
New products bring in higher sales, increased customer loyalty, and
ultimately higher profits 
Launching new products & services is the
N1 driver of revenue growth.
Deloitte Research
Almost half of total revenue comes from new
products.
Aberdeen Group

6. REVENUE
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 6
Oracle
Half of the revenue for Best-in-Class companies
comes from new products, a clear gap between their
peers.
New products bring in higher sales, increased customer loyalty, and
ultimately higher profits 
POSITIVE. FIGURE №1

7. FAILURES
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 7
NEGATIVE. FIGURE №2
New Product Development is a highly complicated process 
Every year brings 30,000 of new products. About
90% of them fail despite thorough and expensive
market research.
Harvard Business Review

8. FAILURES
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 8
NEGATIVE. FIGURE №2
New Product Development is a highly complicated process 
The main reason behind new products failure:
24% Inadequate market analysis (i.e. analysis of customer needs);
16% Product problems of defects;
14% Lack of effective marketing effort;
10% Higher costs than anticipated;
9% Competitive strength and reaction;
8% Poor timing of introduction;
6% Technical or production problems;
13% All other causes.
Robert Cooper, Winning At New Products

9. FAILURES
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 9
NEGATIVE. FIGURE №2
New Product Development is a highly complicated process 
Management will increasingly have to be based on
the assumption that neither technology nor end
use is a foundation for management policy. They
are limitations. The foundations have to be
customer values.
Peter Drucker, Management Challenges for the
21st Century

10. FAILURES
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 10
NEGATIVE. FIGURE №2
New Product Development is a highly complicated process 
All too frequently, marketers' focus on the
customer causes them to target phantom needs.
Clayton M. Christensen et al

11. Is there any technique
to identify real
needs for NPD?
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 11

12. REAL NEEDS
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 12
POSITIVE. FIGURE №3
Marketing research
techniques:
Customer needs
Design research
techniques:
People needs
Number of people 100 10
Number of things 1 100
Design in Technology program, University of Cambridge,
Judge Institute of Management
Design research tools used in design thinking is an effective approach
to identify new product ideas 

13. IDEAS-TO-MARKET
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 13
NEGATIVE. FIGURE №4
Why so many ideas?? Because of a dropout rate… 
D. L. Babcock, Managing Engineering Technology
60
ideas
1
successful
product

14. Why to use such
sophisticated tools to
generate new product
ideas? There is
business analytics…
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 14

15. DATA VS. KNOWLEDGE
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 15
NEGATIVE. FIGURE №5
Machines cannot generate new product hypotheses 
Despite an abundance of data, most companies
do a poor job of predicting the behavior of their
customers. Even companies that take the greatest
trouble over their predictions are correct only
55% - a result that hardly justifies the costs of
having a CRM system in the first place.
Harvard Business Review

16. 2. ABOUT SPEED
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 16

17. SPEED-TO-MARKET
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 17
POSITIVE. FIGURE №6
While both cost and quality come in high, launching products before
competitors has always been a top focus for manufacturers. 
Every year for the past five years, Time has been
the number one pressure identified by companies
surveyed… Products that are released on-time
result in 72% higher profit margins.
Aberdeen Group

18. ALL TOO LATE…
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 18
NEGATIVE. FIGURE №7
In today’s fast moving environment, when the product reaches the
market, it may find it already dramatically changed 
If it takes you 9 months to develop and launch a
new product and then another 9 months before it
begins delivering significant revenue, your
development cycle time is 9 months but your
time-to-revenue is 18 months.
Industryweek.com

19. How can design
thinking help to
speed up the NPD
process?
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 19

20. PROTOTYPING
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 20
POSITIVE. FIGURE №8
Design thinking is about creating prototypes of new product ideas
asap. 
In our practice, when companies are used to
spending up to 1 year to produce a well
elaborated product which may be already
obsolete by the time of launch, we spend about
1 month to create rough prototypes refined due
to several iterations based on customer feedback.
Lumiknows

21. PROTOTYPING
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 21
POSITIVE. FIGURE №8
Design thinking is about creating prototypes of new product ideas
asap. 
We had this idea of ‘adaptive script’, but it was all at the level of
thinking. We had been asking our divisions for about 3 months if
that was possible to implement. But everybody kept silence… And
here, suddenly, we have realized it and within a very short time!
…And I like the definition of ‘prototype’ as a ‘visualization of
business requirements’.
Department of customer experience modernization, Sberbank.
Design thinking project executed by Lumiknows, 2015

22. The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 22
 
REVENUE FAILURES
REAL NEEDS IDEAS-TO-MARKET
SPEED-TO-MARKET DATA VS KNOWLEDGE
PROTOTYPING ALL TOO LATE…
Why design thinking & design research:
value for business

23. Contacts
Ekaterina Khramkova
e.khramkova@lumiknows.com
Lumiknows, Moscow, Russia
http://www.lumiknows.com
Lumiknows is a Russia based product design &
innovation consultancy.
The value of design thinking & design research for organizations Lumiknows, Ekaterina Khramkova 23

24. Dr Ekaterina Khramkova
Lumiknows
Russia
WHY
THANK YOU!
THINKING
DESIGN
Version 1.0
&
DESIGN
RESEARCH