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ROI of Remote Design Thinking

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In this webinar, Joni Saylor, Design Principal at IBM and Dean Davison, Principal Consultant at Forrester explain the payoff of IBM’s early investment in “virtual studios” and their journey & evolution to be able to work in person and remotely.

Follow along with the webinar recording at blog.mural.co

Published in: Design
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ROI of Remote Design Thinking

  1. 1. ROI OF REMOTE DESIGN THINKING MURAL WEBINAR HOSTED BY JONI SAYLOR DESIGN PRINCIPAL IBM @jonisaylor DEAN DAVISON PRINCIPAL CONSULTANT FORRESTER @dean_forrester MARIANO SUAREZ-BATTAN CEO/FOUNDER MURAL @batmelon #RemoteROI @MURAL
  2. 2. 380,000 
 IBMers @jonisaylor
  3. 3. 175
 countries @jonisaylor
  4. 4. 50–300
 teammates @jonisaylor
  5. 5. 106
 years old @jonisaylor
  6. 6. 2012
  7. 7. [Re]build a sustainable culture of design at IBM. @jonisaylor
  8. 8. continuous delivery speed diverse, empowered teams people-focused collaborative hospitality To technology-focused processes hierarchical slow waterfall manufacturing From silos aligned
  9. 9. People Practices Places Outcomes + @jonisaylor
  10. 10. 1600+ designers @jonisaylor
  11. 11. Quick example #1 Finance
  12. 12. Quick example #1 Security
  13. 13. Healthcare
  14. 14. designers at IBM the rest of IBM 0.42%
  15. 15. Practices Design Thinking is a 21st century business skill. @jonisaylor
  16. 16. Beginning with a focus on user
 outcomes Diverse, empowered
 teams Continuously
 deliver.
  17. 17. Observe Reflect Make
  18. 18. A business doesn’t care about Design Thinking, a business only cares about market outcomes. “ -Phil Gilbert General Manager, Design at IBM
  19. 19. *IBM internal study, 2017
  20. 20. Places Create spaces that fuel collaboration and making. @jonisaylor
  21. 21. @jonisaylor
  22. 22. Places Is design thinking just something you do in a workshop? @jonisaylor
  23. 23. Team story here… @jonisaylor
  24. 24. Team story here… @jonisaylor
  25. 25. Remote First @jonisaylor
  26. 26. Empathy Maps Mural
  27. 27. MURAL is for whole teams, not just designers. @jonisaylor
  28. 28. “Hey, check out this mural and leave your comments when you get a chance.” @jonisaylor
  29. 29. Jordan Shade Designer, IBM http://blog.mural.co/ 2017/03/30/remote-design- at-ibm
  30. 30. Embed Designers and Design Thinking practices into the team’s workflow. @jonisaylor
  31. 31. @jonisaylor
  32. 32. © 2018 FORRESTER. REPRODUCTION PROHIBITED. The Total Economic Impact 
 Of MURAL Dean Davison, Principal Consultant March 15, 2018
  33. 33. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 67 Agenda › About Forrester’s TEI methodology › Customer insights about using MURAL › Assumptions, calculations, and financial results Please note: This slide presentation is an abridged, graphical, and complementary representation of a case study. For a full explanation of methodology and details on model calculations, please refer to the full case study 
 (The Total Economic Impact of MURAL, March 2018)
  34. 34. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 68 The objective of the TEI framework is to identify all of the factors that affect an investment decision Benefits Costs Flexibility Risks Total Economic Impact
  35. 35. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 69 Forrester took a multistep approach to evaluate the impact of MURAL Start Due diligence Customer interviews Create financial model Write case study Review and finalize
  36. 36. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 70 Disclosures The audience should be aware of the following: › This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of MURAL, October 2018). › The study is commissioned by MURAL and delivered by the Forrester Consulting group. › Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the report to determine the appropriateness of an investment in MURAL. › MURAL reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study. › The customer names for the interviews were provided by MURAL. › Forrester does not endorse MURAL.
  37. 37. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 71 Before MURAL, IBM managed design thinking sessions by getting participants into a conference room for several days, using whiteboards and sticky notes, and utilizing live facilitators. “Using MURAL, the team took a more structured approach during sessions. We collect better data because we come up with better questions to ask in the first place.”
  38. 38. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 72 Forrester has determined the following three-year impact
 
 Based on an analysis of MURAL customer feedback and quantified benefit, cost, risk, and flexibility factors. ROI NPV PAYBACK 495% $19.1 million <6 months
  39. 39. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 73 KEY DRIVERS Equalize the voices of all participants (it is hard to check team hierarchies at the door) Get contributors together for a global company at a lower cost for travel and time Avoid multi-day sessions as they taxed professionals The customers shared experiences before and after using MURAL KEY RESULTS Change in the company culture Streamlined design thinking workshop timeline and quality 
 Faster results The Customer Journey
  40. 40. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 74 Executives shared the following about their experience using MURAL “Using MURAL was like night and day for design work. Normally, it’s difficult to get everybody with the right expertise from different groups and various countries on the same page and working together in real time. The savings was especially significant at the beginning of a project where we do a lot of building definitions and conceptual thinking.”
 ~Phil Gilbert, IBM We thought that doing cocreation work would be better with everyone sitting in the same room, but that requires time and travel. Using MURAL allowed us to cocreate more quickly and keep our Agile momentum rolling without delays in time or increases in costs. It accelerated the speed of getting to the outcome and getting through the exercise faster than in the past.”
 ~Konrad Lagarde, IBM
  41. 41. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 75 The customers quantified key benefits from the MURAL investment ACCELERATE RESULTS Savings from retired infrastructure, avoided licenses, reduced staffing requirements COST SAVINGS Avoided cost of 
 redundant creative work because divisions could find assets PRODUCTIVITY INCREASE Avoided cost of sending assets globally via transfers or shipping
  42. 42. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 76 Helped change IBM culture as more people got involved in design thinking Reduced learning curve and helped IBM scale design thinking Increased pace with more frequent sessions and reduce time commitment Accelerating results from design thinking
  43. 43. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 77 Reduced cost of travel and running design sessions On average, two fewer people traveled to thousands of sessions each year. IBM did not require basic supplies such as sticky notes, poster boards, and catered meals that would normally be part of a multiday, face- to-face workshop. Technology Cost Savings Avoided travel cost per participant per session $1,200 Reduced cost of supplies, facilities, and catering per session $400 Average number of sessions 3,275 Three-year benefit PV $19.2M
  44. 44. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 78 Increased productivity of project development
 teams due to improved Agile development BENEFIT - $3.8 million over three years • Used cocreation with the business units to improve the impact of development efforts, and MURAL enabled a more rapid pace as it avoided time delays by coordinating participant schedules. • IBM’s IT organization was able to bring together teams more quickly to conduct activities. One specific area mentioned in the interview was post- mortems and root-cause analysis, where the organization was able to reduce its average time-to-resolution by 50%. Employees affected FTE’s avoided hiring (over 3 years) Risk adjustment 5,460 49.1 ▼5%
  45. 45. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 79 Customers incurred 3 categories of cost to use MURAL COST 1 • Cost of MURAL subscription and services • $2.3 million over three years for thousands of design professionals COST 2 • Cost of building templates and • curriculum • Initial cost of $357,000 • Cost in later years totaling just over $250k COST 3 • Cost for training time and redesigning workshop structure • Twi weeks to adapt to digital platform approach • $879,855 total cost over three years
  46. 46. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact of MURAL, March 2018 80 Three-year model summary results ROI 495% NPV $19.1 million Payback <6 months Cash flows -$10.0 M $10.0 M $20.0 M $30.0 M $40.0 M Initial Year 1 Year 2 Year 3 Total costs Total benefits Cumulative net benefits
  47. 47. FORRESTER.COM Thank you © 2018 FORRESTER. REPRODUCTION PROHIBITED. Dean Davison +1.650.581.3801 ddavison@forrester.com
  48. 48. Accelerate and scale the practice of design thinking across teams and organizations through online and in- person training, practical resources and a comprehensive badging program.  ibm.com/design/thinking
  49. 49. #RemoteROI mural.co/impact Q&A

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