Driving Business Success through Inclusive Innovation (with examples and prompts)
What is the cost of exclusion in your industry? Diversity & inclusion initiatives might take time, resources, and investment, but have you thought about the cost of doing nothing?
How accessible, diverse and inclusive your company is directly impacts revenue, customer satisfaction, brand perception, and business success.
By quantifying potential costs, leaders can understand the importance of inclusivity and make informed decisions benefiting both their business and the communities served.
Below we explore the potential costs and impacts of exclusionary practices across the industries of technology, retail, hospitality, financial services & consumer products.
At the end, we share a few question prompts to help guide your inclusive innovation conversations.
Example 1: Retail Store
Scenario: Imagine a retail store’s website that doesn’t accommodate individuals with visual impairments. This practice excludes these individuals from shopping online, hampering the potential for more inclusive innovation.
💰 Missed Opportunities: Calculate the potential revenue lost due to customers with visual impairments being unable to use the website. Consider their average purchase value and how often they shop.
💰 Impact on Reputation: Think about the negative sentiment generated by customers living with disability and facing difficulties on the website. Evaluate the impact of negative reviews and social media backlash.
💰 Long-Term Effects: Measure the loss of customer loyalty and word-of-mouth referrals due to this exclusion. This might lead to fewer repeat customers and recommendations to friends and family.
💰 Competitive Disadvantage: Compare the store’s online shopping experience with competitors offering accessible websites. This could result in a decreased market share.
💰 Quantify Reputation Management Costs: Calculate the expenses involved in managing negative PR, enhancing website accessibility, and addressing potential legal matters connected to meeting accessibility requirements.
Example 2: Software Development Company
Scenario: Imagine a software company with a team lacking diversity, leading to biased and less inclusive products. Taking a more inclusive innovation approach could revolutionise their design processes and unlock untapped potential.
💰 Innovation and Creativity: Look at examples of diverse teams creating innovative products. Estimate potential gains in creativity from diverse perspectives.
💰 Missed Opportunities: Reflect on untapped markets due to biased products. These markets can be reached with more products that prioritise inclusive innovation.
💰 Employee Morale: Think about how a lack of diversity affects employee morale and job satisfaction, influencing the work environment.
💰 Competitive Disadvantage: Compare the company’s products to competitors’ more inclusive offerings.
💰 Quantify Reputation Costs: Estimate costs related to addressing negative PR, potential lawsuits, and the effort to fix biased products.
Example 3: Hospitality Business
Scenario: Imagine a hotel that doesn’t accommodate guests with mobility challenges, causing negative experiences. Embracing inclusive innovation could improve not just the experience of guests, but other functions in the business too.
💰 Missed Opportunities: Calculate the potential revenue loss from guests with mobility challenges choosing competitors due to inaccessibility.
💰 Impact on Reputation: Assess the potential for negative reviews and social media posts detailing the inaccessible experience.
💰 Long-Term Effects: Consider the impact on repeat business and customer loyalty from negative experiences shared by guests.
💰 Employee Morale: Analyze how employee morale is affected when they witness guest dissatisfaction due to exclusion.
💰 Quantify Reputation Costs: Estimate costs related to addressing negative PR, potential lawsuits, and the expenses of retrofitting the hotel for accessibility.
Example 4: Financial Services Company
Scenario: Think about a financial services company without diversity among its key decision-makers, resulting in exclusionary practices that cater to a specific demographic. Inclusive innovation can revolutionise their approach, mitigate risk and ensure more sustainable business practices.
💰 Market Expansion: Estimate growth potential by offering financial products tailored to underrepresented demographics.
💰 Missed Opportunities: Calculate the revenue loss from potential customers due to lack of representation and inclusivity.
💰 Reputational Impact: Assess potential backlash and negative publicity due to exclusionary practices.
💰 Employee Morale: Evaluate the impact on employee morale when diversity affects workplace culture and values.
💰 Quantify Reputation Costs: Estimate costs related to addressing negative PR, potential lawsuits, and efforts to improve diversity and inclusivity.
Example 5: Consumer Products Company
Scenario: Imagine a consumer products company with marketing campaigns reinforcing stereotypes and continually excluding minority demographics. By embracing an inclusive innovation mindset, they can shift negative sentiments and access new audiences.
💰 Consumer Perception: Capture and estimate negative sentiment from consumers finding the marketing campaigns insensitive or exclusive.
💰 Market Reach: Run scenarios that calculate potential market share loss due to consumer backlash and inability to connect with diverse segments.
💰 Impact on Reputation: Assess the effect on brand image associated with content that perpetuates stereotypes or is designed for the “default” user only.
💰 Competitive Disadvantage: Compare the company’s market position to competitors who resonate with diverse audiences through inclusive marketing.
💰 Quantify Negative Reputation Costs: Estimate costs related to addressing negative PR, potential boycotts, and expenses of revising marketing materials.
Remember, these examples highlight that exclusionary practices have measurable impacts on businesses. Inclusive innovation avoids these consequences and fosters a positive environment, leading to long-term success and growth.
Image credit: Unsplash
Questions to ponder:
The below questions can help teams evaluate the implications of their design decisions on various aspects of their business and make informed choices to foster inclusivity and innovation. We always recommend having at least one (better if a few) inclusion champions who ask these questions in any important meeting where decisions are being made.
Competitive Disadvantage:
How does our brand/product/service compare to competitors in terms of diverse representation, accessibility and inclusivity? What can we learn from them?
Are there potential markets or customer segments that we’re missing out on due to our design practices?
Employee Morale:
How does our team feel about the inclusivity of our product/service?
Are there concerns among team members regarding exclusionary design practices?
Do employees feel that their diverse perspectives are being valued and integrated into the design process?
Impact on Reputation
What kind of feedback have we received from customers or users about the inclusivity of our brand/product/service?
Are there any negative reviews or comments related to representation, accessibility or inclusivity?
Innovation and Creativity
What is our collective culture on innovation? Do we have one?
How diverse is our team’s composition in terms of backgrounds, experiences, and perspectives?
Have we explored various viewpoints in the design process to ensure a comprehensive solution?
Are there areas where incorporating diverse perspectives could lead to more innovative ideas?
Long-Term Effects:
What potential consequences might arise from excluding certain user groups over time?
What demographic trends are being predicted in the short, medium & long term (e.g. aging population, changes in gender-related data collection)?
Missed Opportunities:
Who have we overlooked and/or what narratives have we assumed?
How much potential revenue are we missing out on by not catering to a wider audience?
Quantify Reputation Costs:
What would be the financial impact of negative PR resulting from exclusionary design practices, on both our bottom line & employer brand?
Are there case studies we can learn from that involve organisations & their non-inclusive practices?
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If you’d like to explore various factors that stand in the way of creating a truly inclusive, innovative & loveable business, get in touch here.