Design influences business decisions, and the winners are those who learn to compromise most effectively.
Design is just problem-solving. Business is just the monetization of problem-solving.
Design and business are siblings. To say “design can influence business decisions” is like saying “the wind can influence the weather.” The best and most profitable businesses find unique ways to monetize the unique advantages good design creates through compromise.
McKinsey reports a strong correlation between high Design scores and superior business performance. But it is apparent that not all designers are great business people, and not all business people are great designers, of course. It is often the case that the optimal solution from a design standpoint does correspond with the optimal solution from a business standpoint.
Compromise is, therefore, not just necessary—compromise is the activity that defines the space where business and design intersect.How We Tested Assumptions at Lovesac
Lovesac solved the problem of making the world’s most comfortable seat and, later, the world’s most adaptable couch. It took us many years of testing different business policies, pricing, promotion, places, etc., all resulting in various “compromises,” to tease out the best business model to pair with these superior designs that could monetize them efficiently and produce reliable profits and self-perpetuating growth exhibited by Lovesac today. These profits are reinvested to fuel further innovation, and the cycle repeats.
A good example of design influencing business policy on Lovesac terms is the notion that we have chosen never to drop core fabrics from our line. We know by listening to our customers that this is a very satisfying feature for them when purchasing their washable, changeable, endlessly adaptable Sactionals couch.
