What IBM Tells Us About the ROI of UX

What IBM Tells Us About the ROI of UX

What IBM Tells Us About the ROI of UX

In a world where every dollar spent is scrutinized, it’s fair to ask: Does design actually move the needle?

IBM wanted to answer that. So they asked Forrester to run the numbers. The result was one of the most cited studies in the UX world—a report that quantified the return on IBM’s investment in design practices across real business units.

The headline? A 301% return on investment over three years.

But let’s look beyond the headline. What did that 301% really mean, and how did they get there?

What IBM Measured

This wasn’t a theoretical exercise. Forrester studied five IBM product teams that had adopted IBM’s Enterprise Design Thinking framework. These weren’t marketing websites or creative prototypes; they were core software tools used by real businesses.

Forrester ran a Total Economic Impact™ (TEI) study, which looks at the full picture:

  • Tangible business benefits (revenue, cost savings)

  • Intangible improvements (collaboration, satisfaction)

  • Risk factors (what could go wrong)

  • Time horizon (in this case, three years)

The Gains: Where the ROI Came From

Here’s where design proved its worth:

1. Faster Time to Market – 75% improvement
Design-led teams shipped features and products significantly faster. By aligning earlier with users and business goals, they avoided rework and reduced wasted cycles.

2. Reduced Development and Design Time – 2x faster
Design Thinking helped teams focus on the right problems early, which meant fewer pivots and shorter development timelines.

3. Lower Risk of Failure – 33% less redesign
Products built with user input from the start were less likely to require fixes post-launch.

4. Increased Product Adoption – up to 300%
Users actually used the things these teams built. Better usability led to faster onboarding and less training time.

5. Higher Customer Satisfaction – measurable uptick in NPS
Design-led tools were simply easier to use, which improved customer sentiment and retention.

So, Where Does the 301% ROI Come From?

Forrester translated the above into hard numbers. Across the five teams:

  • For every $1 invested in Enterprise Design Thinking, IBM saw $3.01 in return.

  • That ROI played out over a three-year window, with a payback period of less than 6 months.

In financial terms, the results speak for themselves.

What This Means for You

You don’t need IBM’s headcount or budget to see similar results. The value comes from a consistent approach to design. One that ties research, strategy, and execution together with real accountability.

That’s why many companies are turning to fractional UX teams; experienced partners who can step in with the right level of support, whether that’s a strategic push or hands-on execution.

The best teams:

  • Align design work to business goals

  • Involve users early and often

  • Build momentum through a repeatable process

  • Deliver outcomes, not just output

Design Drives Results

If you’ve ever found yourself shipping features that don’t move metrics or chasing user complaints after launch, it might be time to rethink the role of UX in your organization.

Done well, UX reduces waste, builds better products, and earns back its cost many times over.

That’s what the IBM study shows. And that’s what we see with our clients every day.

Looking to make UX a growth driver in your organization?
Let’s talk about how a focused team can help.

In a world where every dollar spent is scrutinized, it’s fair to ask: Does design actually move the needle?

IBM wanted to answer that. So they asked Forrester to run the numbers. The result was one of the most cited studies in the UX world—a report that quantified the return on IBM’s investment in design practices across real business units.

The headline? A 301% return on investment over three years.

But let’s look beyond the headline. What did that 301% really mean, and how did they get there?

What IBM Measured

This wasn’t a theoretical exercise. Forrester studied five IBM product teams that had adopted IBM’s Enterprise Design Thinking framework. These weren’t marketing websites or creative prototypes; they were core software tools used by real businesses.

Forrester ran a Total Economic Impact™ (TEI) study, which looks at the full picture:

  • Tangible business benefits (revenue, cost savings)

  • Intangible improvements (collaboration, satisfaction)

  • Risk factors (what could go wrong)

  • Time horizon (in this case, three years)

The Gains: Where the ROI Came From

Here’s where design proved its worth:

1. Faster Time to Market – 75% improvement
Design-led teams shipped features and products significantly faster. By aligning earlier with users and business goals, they avoided rework and reduced wasted cycles.

2. Reduced Development and Design Time – 2x faster
Design Thinking helped teams focus on the right problems early, which meant fewer pivots and shorter development timelines.

3. Lower Risk of Failure – 33% less redesign
Products built with user input from the start were less likely to require fixes post-launch.

4. Increased Product Adoption – up to 300%
Users actually used the things these teams built. Better usability led to faster onboarding and less training time.

5. Higher Customer Satisfaction – measurable uptick in NPS
Design-led tools were simply easier to use, which improved customer sentiment and retention.

So, Where Does the 301% ROI Come From?

Forrester translated the above into hard numbers. Across the five teams:

  • For every $1 invested in Enterprise Design Thinking, IBM saw $3.01 in return.

  • That ROI played out over a three-year window, with a payback period of less than 6 months.

In financial terms, the results speak for themselves.

What This Means for You

You don’t need IBM’s headcount or budget to see similar results. The value comes from a consistent approach to design. One that ties research, strategy, and execution together with real accountability.

That’s why many companies are turning to fractional UX teams; experienced partners who can step in with the right level of support, whether that’s a strategic push or hands-on execution.

The best teams:

  • Align design work to business goals

  • Involve users early and often

  • Build momentum through a repeatable process

  • Deliver outcomes, not just output

Design Drives Results

If you’ve ever found yourself shipping features that don’t move metrics or chasing user complaints after launch, it might be time to rethink the role of UX in your organization.

Done well, UX reduces waste, builds better products, and earns back its cost many times over.

That’s what the IBM study shows. And that’s what we see with our clients every day.

Looking to make UX a growth driver in your organization?
Let’s talk about how a focused team can help.

In a world where every dollar spent is scrutinized, it’s fair to ask: Does design actually move the needle?

IBM wanted to answer that. So they asked Forrester to run the numbers. The result was one of the most cited studies in the UX world—a report that quantified the return on IBM’s investment in design practices across real business units.

The headline? A 301% return on investment over three years.

But let’s look beyond the headline. What did that 301% really mean, and how did they get there?

What IBM Measured

This wasn’t a theoretical exercise. Forrester studied five IBM product teams that had adopted IBM’s Enterprise Design Thinking framework. These weren’t marketing websites or creative prototypes; they were core software tools used by real businesses.

Forrester ran a Total Economic Impact™ (TEI) study, which looks at the full picture:

  • Tangible business benefits (revenue, cost savings)

  • Intangible improvements (collaboration, satisfaction)

  • Risk factors (what could go wrong)

  • Time horizon (in this case, three years)

The Gains: Where the ROI Came From

Here’s where design proved its worth:

1. Faster Time to Market – 75% improvement
Design-led teams shipped features and products significantly faster. By aligning earlier with users and business goals, they avoided rework and reduced wasted cycles.

2. Reduced Development and Design Time – 2x faster
Design Thinking helped teams focus on the right problems early, which meant fewer pivots and shorter development timelines.

3. Lower Risk of Failure – 33% less redesign
Products built with user input from the start were less likely to require fixes post-launch.

4. Increased Product Adoption – up to 300%
Users actually used the things these teams built. Better usability led to faster onboarding and less training time.

5. Higher Customer Satisfaction – measurable uptick in NPS
Design-led tools were simply easier to use, which improved customer sentiment and retention.

So, Where Does the 301% ROI Come From?

Forrester translated the above into hard numbers. Across the five teams:

  • For every $1 invested in Enterprise Design Thinking, IBM saw $3.01 in return.

  • That ROI played out over a three-year window, with a payback period of less than 6 months.

In financial terms, the results speak for themselves.

What This Means for You

You don’t need IBM’s headcount or budget to see similar results. The value comes from a consistent approach to design. One that ties research, strategy, and execution together with real accountability.

That’s why many companies are turning to fractional UX teams; experienced partners who can step in with the right level of support, whether that’s a strategic push or hands-on execution.

The best teams:

  • Align design work to business goals

  • Involve users early and often

  • Build momentum through a repeatable process

  • Deliver outcomes, not just output

Design Drives Results

If you’ve ever found yourself shipping features that don’t move metrics or chasing user complaints after launch, it might be time to rethink the role of UX in your organization.

Done well, UX reduces waste, builds better products, and earns back its cost many times over.

That’s what the IBM study shows. And that’s what we see with our clients every day.

Looking to make UX a growth driver in your organization?
Let’s talk about how a focused team can help.

Ready to drive your business forward?

Ready to drive your business forward?

Ready to drive your business forward?

Ready to drive your business forward?