Singapore, 26 November 2020 – The DesignSingapore Council (Dsg), a subsidiary of the Singapore Economic Development Board, today announced the launch of the Business Value of Design (BVoD) Programme, in partnership with leading business strategy and design firm, McKinsey Design. This is Singapore’s first national programme to help companies in Singapore use human-centered design to create a more innovative and creative culture within their organisation, capture new opportunities and solve systemic issues, particularly with widespread changes brought about by COVID-19.
According to McKinsey’s 2018 BVoD study of 300 companies over a five-year period across industries and countries, top performing companies in the McKinsey Design Index (MDI) generated 32 percent higher revenue and 56 percent higher returns to shareholders than their peers.
For example, a company that traditionally made car roof racks transformed into an outdoor lifestyle brand through a brand repositioning exercise and more importantly, a launch of two new product categories, which consequently accounted for 25 percent of its total revenue. A major PC hardware company undertook a design transformation between 2013 and 2019 to pivot from traditional desktop peripheral hardware to digital lifestyle products like mobile speakers and teleconferencing tools – quadrupling its profits. A multinational food company also undertook an end-to-end design-led approach to attain customer insights, understand trends and technologies, and define business objectives, to develop new concepts and products, which are projected to garner up to US$200 million in net sales across six markets in the region.
Hence, there is a strong correlation between great design capabilities and superior business performance. In addition, McKinsey Design identified four key design themes that have direct impact on financial performance, namely analytical leadership, cross-functional talent, user experience, and continuous iteration.
Dsg’s partnership with McKinsey Design
Dsg, through the BVoD Programme, will leverage McKinsey Design’s rich domain knowledge and expertise and its proprietary MDI to help companies assess and diagnose their design performance and maturity, identify areas of improvement, and outline and guide them through actionable next steps for business growth and success.
Mr Mark Wee, Executive Director of Dsg, said, “For our companies in Singapore that are grappling with the challenges brought about by COVID-19, there is no better time than now to differentiate themselves from their counterparts through design to drive profitable and desirable human-centred innovation. Dsg is committed to helping businesses leverage design as a strategy and key enabler to uncover new opportunities and generate business growth. We are glad to have McKinsey Design as our knowledge partner as their strong capabilities in design and management consulting will guide and enable businesses to achieve advancement and scalability in their operations.”
Mr Jeff Galvin, Partner and Leader of McKinsey Design in Asia, said, “Our McKinsey Design Index and client work have shown that organisations which are better at design are more successful. We are excited to partner with Dsg to share our expertise and help Singapore’s companies accelerate growth and improve customer experience.”
The BVoD Programme
Through the BVoD Programme, which starts from 26 November 2020, participating companies will undergo a two-phase process – Assess & Reflect and Aspire & Act.
- The Assess & Reflect phase will start with companies taking the MDI assessment, followed by a BVoD Forum, where companies will receive a detailed diagnosis of their state of design maturity while gaining deep insights to areas of improvement and top key design behaviours that translate to strong business performance. The Assess & Reflect phase will last for seven weeks; companies will have the flexibility to complete the assessment anytime within that timeframe.
- The second phase, Aspire & Act, which takes two weeks to complete, will have companies taking practical action in addressing their improvement areas under the guidance and coaching of McKinsey experts. This will culminate in a detailed business plan for a key product or service using a proprietary design-led approach. It will conclude with the Next Steps Forum to prepare companies to embark on their design transformation journey.
The Assess & Reflect phase is free for all interested companies and the Aspire & Act phase, co-sponsored by Dsg, will cost S$2,500, which is a highly-subsidised fee. The BVoD Programme is open to all Singapore and Singapore-based companies, including multinational corporations, large local enterprises and small and medium enterprises, and across all industries.
Companies that are interested to take the free assessment can visit https://go.gov.sg/bvod-assess. They can also find out more about the BVoD Programme at https://bit.ly/BVoD2020.
About the DesignSingapore Council (Dsg)
DesignSingapore Council’s (Dsg) vision is for Singapore to be an innovation-driven economy and a loveable city through design by 2025. As the national agency that promotes design, our mission is to develop the design sector, help Singapore use design for innovation and growth, and make life better in this UNESCO Creative City of Design. The Dsg is a subsidiary of the Singapore Economic Development Board.
About McKinsey & Company
McKinsey & Company is a global management consulting firm committed to helping organizations create Change that Matters. In more than 130 cities and 65 countries, our teams help clients across the private, public and social sectors shape bold strategies and partner with our clients to transform the way they work, embed technology where it unlocks value, and build capabilities to sustain the change.
About the Singapore Economic Development Board (EDB)
The Singapore Economic Development Board (EDB), a government agency under the Ministry of Trade and Industry, is responsible for strategies that enhance Singapore’s position as a global centre for business, innovation, and talent. We undertake investment promotion and industry development, and work with international businesses, both foreign and local, by providing information, connection to partners and access to government incentives for their investments. Our mission is to create sustainable economic growth, with vibrant business and good job opportunities for Singapore and Singaporeans.
For more information on EDB, please visit www.edb.gov.sg.