The Inclusive Innovation Playbook

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Why Inclusive Innovation Matters

The Business Case For Change

Understand ‘why’ inclusive innovation matters

Currently, many innovation and product development practices do not take into account the diversity of users. This can result in products and services that are not accessible or usable for certain groups of people, or that fail to meet the needs of or foster a sense of belonging with some segments of the population. Worse still this can cause discrimination and harm.

What happens when we don’t intentionally create inclusive products?

At best we cause exclusion - not everyone benefits or is able to use our product.

For example, automated soap dispenser that only works for white hands, face recognition systems that don’t work for people with some neurodivergent conditions or darker skin, speech recognition that doesn’t work for people with certain accents.

Much worse we cause discrimination - people are treated unfairly, denied opportunities or suffer harm as a result of our product.

For example, loan applications that unfairly deny people loans, racist chat bots, biased prison sentencing algorithm, A-level prediction algorithm that assigns people grades based on their postcodes, algorithms that deny people access to the healthcare that they need or algorithms for human resources and recruiting purposes that unfairly favour some people over others.

There are even examples where we cause death.

For example,

crash test dummies⁠

based only the male form (for decades), medical trials only tested on white men.

It isn’t just about avoiding bad stuff. Inclusive products help you to better serve your existing customers and opens up new markets for you.

For example, adding closed captions to video content doesn’t just help people who cannot hear the audio. They can help people with different neurodivergent conditions, people who speak different languages and aid learning including comprehension, accuracy, engagement, and retention for all viewers.

Closed captions also opens up your content to audience members previously restricted based on situational limitations, such as being in a shared office or on public transport or a very noisy environment.

Furthermore research shows that younger generations choose to consume content with subtitles. Interestingly from an inclusion perspective this is opening up interest in foreign language films, as subtitles are no longer a barrier to entry. This in itself is great for fostering more inclusive societies as it builds cultural awareness.

Why change?

What got us here, won’t get us there. The world is rapidly changing and consumers, employees, and partners all have increasing expectations on the importance of diversity, equity and inclusion.

Change is needed to ensure that innovation and product development practices are inclusive and equitable by design. This means taking into account the diversity of users and considering the potential impact of design decisions on different groups. By doing so, organisations can create products and services that are more accessible, usable, and useful for all users. Expectations around personalisation are also growing and developing a deeper understanding of your user base is vital.

Furthermore, these historic exclusive practices can perpetuate existing social and economic inequalities. When products and services are not designed with diverse users in mind, certain groups may be excluded or marginalised.

Often products and services are designed with the default, majority user in mind. For example only considering the needs of the default white, middle class, able bodied, straight, neurotypical man will leave many of your users underserved and much of your potential market opportunity untapped.

It is important to note, that not thinking consciously about inclusivity often leads to default white male design, even by people who do not fit this default profile. Due to the historical context and nature of environment around us, we have all to some degree been conditioned to operate in a certain way.

Diverse and inclusive people are not enough. Inclusive practices are essential for creating successful and sustainable products and services.

Not only does inclusive innovation help create innovative products and services tailored to the needs of diverse customers and communities, it ultimately drives economic growth by empowering more people to join the labour force.

Business benefits of inclusive innovation

Inclusive innovation is not only the right thing to do, it's great for business.

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Benefits of Inclusive Innovation 1) Serve more people -→ Increase revenue 2) Create better solutions -→ Increase impact 3) Do the right thing -→ create equity

⁠

Over and above the social responsibility to do the right thing, there are many benefits to organisations that invest in inclusive innovation.

Increased customer satisfaction: By designing for a diverse range of users, you can better understand and meet the needs of different segments of the population, which can lead to new business opportunities and increased customer satisfaction. A key component of inclusive design is empathy for a diverse audience. By creating a sense of belonging instead of exclusion, it helps users feel more welcomed.

⁠

Research⁠

from Microsoft found that implementing inclusive design principles can lead to a 30% increase in usability for all users, not just those with disabilities.

Greater return on investment: Research has shown that businesses with higher levels of diversity tend to perform better overall, making them attractive investments for investors and customers alike.

⁠

Research⁠

shows that companies that reported above-average diversity on their management teams also reported innovation revenue that was 19 percentage points higher than that of companies with below-average leadership diversity.

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McKinsey research⁠

shows a 25% and 36% likelihood of above-average financial returns due to gender diversity and ethnic diversity, respectively.

Excluding people with disabilities can represent a loss between 3-7% in a country’s Gross Domestic Product (GDP), according to the World Bank.

More innovative solutions: By bringing together individuals from different backgrounds and perspectives, organisations can generate new ideas and approaches, which can result in more breakthrough solutions.

Enhanced Employee Experience: Inclusive design practices can lead to a more effective, diverse and engaged workforce, which is critical for fostering a culture of innovation within the organisation.

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Research by Deloitte⁠

shows that work teams which have high levels of inclusion outperform others by 8:1.

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Gallup Research⁠

shows a 20% increase in profitability and productivity due to high levels of engagement.

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Better Up research⁠

shows “if workers feel like they belong, companies reap substantial bottom-line benefits. High belonging was linked to a whopping 56% increase in job performance, a 50% drop in turnover risk, and a 75% reduction in sick days.”

Talent attraction and retention: Increasingly people want to work for companies with a meaningful purpose and an inclusive culture. If you don’t start innovating inclusively the best talent is likely to look elsewhere.

⁠

Deloitte research⁠

found that 72% of employees reported that they would consider leaving an organisation for a more inclusive one.

Market opportunity: There is a growing market opportunity for organisations to serve new and diverse audiences, such as older adults, people with disabilities, and non-native speakers. The general trends are that the world population is aging, becoming more diverse and people with disabilities are increasing and they are all potential customers that you might miss if you don't consider them in your innovation process.

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Experts predict that by 2044⁠

groups formerly seen as “minorities” in the United States are going to collectively reach majority status.

The spending power of people with disabilities and their families in the UK, known as the Purple Pound, is £279 billion.

The Click-Away Pound Report⁠

shows that 81% of disabled users will prioritise a more accessible service over competitive pricing, and 86% would spend more if there were fewer access barriers!

Better decision making: A company’s value is the sum of the decisions it makes and executes.

⁠

Research shows⁠

diverse and inclusive teams make better decisions and that decision making effectiveness is

95% correlated⁠

with financial performance.

Inclusive teams make better business decisions up to 87% of the time.

Teams that follow an inclusive process make decisions 2X faster with 1/2 the meetings.

Decisions made and executed by diverse teams delivered 60% better results.

Competitive advantage: In today’s rapidly-evolving landscape, inclusive teams, products, and services have become essential for any business hoping to remain competitive.

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An Accenture study⁠

highlights 63% of consumers purchasing from purpose-driven brands. A brand can also gain a competitive edge through inclusive design. By providing equal access and opportunity, inclusive design will capture the attention of consumers.

Reputation: Creating accessible and inclusive products can improve brand reputation and avoid negative media attention. It also builds employee brand, which enables you to attract diverse talent, which Tech companies are eager to do.

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Microsoft research⁠

shows 70% of Gen Z are more trusting of brands that represent diversity in ads.

Customer loyalty: Inclusive innovation creates a sense of belonging for customers, fostering loyalty and trust in the brand.

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Accenture research⁠

shows 70% of millennials are more likely to choose one brand over another if that brand demonstrates inclusion and diversity.

Reduce regulatory risk: Inclusive people, practices and products reduce the risk of lack of compliance with legal requirements such as the 2010 Equality Act (or equivalent in different jurisdictions) or the Financial Conduct Authority Consumer Duty legislation requiring financial institutions to prove and document that everyone has equal chances of good outcomes, especially those classified as vulnerable.

Risk of not doing it: Not investing in inclusive innovation can lead to poor customer satisfaction, poor adoption, loss of competitive advantage, damage to reputation, lack of return on investment, and perpetuate existing social and economic inequalities.

⁠

The Click-Away Pound Report⁠

shows that businesses lost £17.1 billion due to inaccessible websites and apps in 2019 in the UK.

Getting Financial Support

In addition to the intrinsic benefits of embracing inclusive innovation, there are also funding opportunities available to support these initiatives, often aimed at smaller businesses.

For example

InnovateUK launches an Inclusive Innovation Award⁠

each year that celebrates and rewards hundreds of small to medium sized enterprise with a £50,000 grant, who have demonstrated impressive inclusive innovation to scale up their existing inclusive strategies.

This substantial award serves as a strong incentive for smaller businesses, empowering them to continuously enhance their inclusive innovation efforts, as emphasized earlier, a vital element for the sustainability of inclusive innovation.

Exploring available funding options in your region is advisable.

Common challenges

With such a compelling business case for inclusive innovation, you may be asking why this is not yet standard practice for many organisations.

Firstly, and the reason we created this playbook, is because there is a lack of readily available resources to help organisations innovate inclusively.

There are also number of additional reasons why inclusive innovation is not standard practice, which include:

Lack of leadership: Organisations may not have strong leadership that understands the importance of inclusive innovation and can drive it forward.

Lack of awareness: Team members may not be aware of how to innovate inclusively or may not understand the importance of considering the diversity of users in the design process.

Limited resources: Some organisations may not have the resources, such as budget or expertise, to invest in inclusive innovation.

Seen an ‘non critical’: Inclusion is seen as non critical and can’t compete with looming deadlines and busy people.

Short-term focus: Organisations may prioritise short-term financial gain over long-term sustainability, which can lead to a lack of investment in inclusive innovation.

Agile practices: Agile practices promote ‘just in time design’ and ‘’next best step’ development, which makes it hard to prioritise features that serve minority groups over creation of new features that will serve the majority and drive growth and adoption.

Competing priorities: Organisations may have to balance the development of new features or products with the need to make existing products more inclusive.

Challenging decisions: Often decision makers need to advocate for the needs of marginalised voices, as well as serving the dominant majority. This is a challenge that many will shy away from. In addition a feature that is attractive to one group of users may not be desirable to others, creating a dilemma on how to balance the needs and preferences of different groups.

Bias: Unconscious bias can also play a role in limiting the consideration of diversity and inclusion in innovation. Research shows that homogeneous teams are more likely to overlook the needs of diverse users. Traditional approaches tend to privilege those in power, favouring their expertise and mitigating risks in their favour.

Lack of control: Often people feel that it is down to a decision made above them or lack of inclusive features in a third party app that they can’t control. Instead of raising a concern, they say nothing.

Lack of measurement: Many organisations may not have a clear way to measure the impact of inclusive innovation on their bottom line and may not see the immediate return on investment.

Lack of community engagement: Inclusive innovation requires proactive and intentional engagement not just to invite, but to prioritise, community and minority group voices and perspectives. Many organisations are seeking feedback, but are either not yet thinking about it or find it challenging to ensure that feedback comes from diverse perspectives.

Gaining support

Here are some top tips to help convince the leaders in your organisation to invest in inclusive innovation:

Make the

business case⁠

for inclusive innovation: Clearly articulate the potential benefits of inclusive innovation, such as increased customer satisfaction, greater return on investment, new market opportunities and more innovative solutions. Use data and statistics to provide a clear and measurable return on investment and demonstrate the potential impact on the bottom line and the market opportunity for serving new and diverse audiences.

Make it personal: Don’t just present generic benefits.

Know your own ‘why’.⁠

Connect the opportunity to your specific vision and strategy, identify potential market uplift by identifying the specific segments you may be currently underserving and specific challenges and opportunities relevant to your organisation, products or services.

Highlight the risks of not investing in inclusive innovation: Explain the negative consequences of not considering the diversity of users in products and services, such as poor customer satisfaction and a lack of return on investment, as well as the potential to perpetuate existing social and economic inequalities.

Show the link between inclusive innovation and the organisation's mission and values: Position inclusive innovation as a critical component of the organisation's mission, values and strategic goals, and demonstrate how it can help the organisation achieve its objectives and improve its reputation and brand. For some organisations this will prompt a rethink about their values, their place in the world, and the impact they want to have on society.

Show leadership support: Secure buy-in from key leaders within the organisation to demonstrate that inclusive innovation is a priority. Inclusive innovation starts with inclusive leadership. Leaders who model inclusive behaviour and create an inclusive culture are more likely to drive innovation and achieve better business results.

Build support from key stakeholders: Identify key stakeholders within the organisation and build support for inclusive innovation among them. This can include leaders and key influencers from different departments, as well as representatives from any diversity and inclusion committees, groups or networks within the organisation.

By taking these steps, organisations can better demonstrate the value and potential impact of inclusive innovation and build support for investment in this area.

Making it a strategic priority

As with any other business critical strategic priority, inclusive innovation will require investment and management support to prioritise action. Once you have gained support for inclusive innovation, it is important to built it into the way your organisation operates. Here are some tips to maximise impact.

Make it a continuous process: Make inclusive innovation an ongoing process, not a one-time effort, and continuously assess and adapt products and services to ensure they are inclusive and equitable for all users.

Establish clear goals and objectives: Set clear and measurable goals and objectives for inclusive innovation and communicate them to all employees.

Create accountability: Create organisational wide accountability for DEI and assign specific individuals or teams to lead inclusive innovation initiatives and hold them accountable for achieving specific goals and objectives.

Consider how to create accountability through specific roles, teams and steering groups.

Gartner research⁠

suggests that a shift from collective accountability to holding individual leaders responsible for their DEI goals is needed to accelerate progress toward reaching gender and racial parity.

You’ll need to find the approach that is right for your organisation. Some organisations establish inclusion steering boards comprised of cross functional and diverse participants. Others, such as Lenovo have established a

Product Diversity Office⁠

. We are also starting to see a trend in the market with new roles such as ‘Product Inclusion Manager’ being created, emphasising the industry shift in priority.

Allocate specific budget: Whilst some change can occur ‘for free’ with the right processes and mindset, meaningful and ongoing change will require continuous investment. Build this into your financial model by allocating budget for inclusive innovation initiatives, including resources for research, design, new feature development, and testing with diverse users. This is likely to be more effective than trying to prioritise inclusion features over new product enhancements at the product roadmap level. New shiny features that customers are shouting about, will always win the short term battle. However creating inclusive products and services is a long term game.

Provide education and training: Provide education and training for all employees on the importance of inclusive innovation and how they can contribute to the organisation's efforts.

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Feedback please⁠

: Please share your experiences of securing support and funding, and establishing accountability for inclusive innovation. What advice can you share that could help others?

We created this playbook to increase awareness of the importance of inclusive innovation and the potential benefits, and to inspire more organisations to invest in inclusive innovation as part of their overall business strategy.

What happens when we don’t intentionally create inclusive products?

Why change?

Business benefits of inclusive innovation

Getting Financial Support

Common challenges

Gaining support

Making it a strategic priority

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