The Design Value Index (DVI) is a market capitalization-weighted index comprised of design-driven companies. The DVI has outperformed the Standard & Poor's 500 Index (S&P 500) by 219% over the past ten years, from 2004 to 2014. This remarkable return is due to the increasing importance of design in today's economy. Companies that design attractive and user-friendly products have a competitive edge in today's marketplace. As a result, consumers are willing to pay more for well-designed products, and investors are eager to invest more in companies with a high design value. As the importance of innovation continues to grow, the DVI is expected to continue outperforming the S&P 500.
Qualifying to be part of DMI’s Design Value Index isn’t easy. First, companies must have met the following criteria over the 10-year research period:
To ensure consistency of financial reporting standards, corporations must be publicly traded in the U.S. over the last ten years.
Design must have been represented in the corporate hierarchy for the period through a central design function led by an executive and the broad deployment of design staff and practices in all significant business units.
Over time, these companies have increased design-related investments in headcount, infrastructure investments, and volume of projects.
There must be a distinct and recognized operating model for design that promotes cooperation and integration with other corporate functions such as marketing, R&D, and operations.
Design leadership must be present at the senior and divisional levels.
Finally, the corporation’s senior management must show a deep commitment to design as a critical strategic enabler and a resource for innovation and change.