Old Ways Are Costing South African Businesses Millions Annually

• South African businesses are reportedly losing significant revenue each year due to operational inefficiencies
• A growing number of companies are exploring design thinking, a human-centred, collaborative, and iterative approach
• It is reported that companies embracing human-centred, iterative problem-solving tend to be more adaptable and capable of sustaining growth
• Wanda Majikijela, Building and Facilities Manager at the Hasso Plattner d-school Afrika at UCT, shared insights with Briefly News on why businesses are struggling

South African companies are losing an estimated 20% to 30% of potential revenue annually due to inefficiencies, even as customer expectations continue to rise. While economic or technological challenges are often cited as the cause, much of the issue is rooted in how teams approach problem-solving internally, according to business analysts.

Turning to design thinking

Organisations are increasingly turning to design thinking, a human-centred, collaborative, and iterative approach, to rethink challenges, uncover real insights, and develop solutions that work in context. Wanda Majikijela, Building and Facilities Manager at the Hasso Plattner d-school Afrika at UCT, explained that this approach emphasises empathy for customers, cross-team collaboration, iterative testing, and real-world prototyping.

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Majikijela noted that most consumers expect brands to understand their needs, but only a fraction of businesses prioritise this. Design thinking encourages teams to go beyond data and observe the actual experiences of customers. He said companies that adopt this approach often identify unrecognised problems, strengthen relationships, increase loyalty, and even uncover new revenue opportunities.

Internal silos continue to slow innovation and create inefficiencies, according to organisational strategists. By encouraging collaboration across departments, design thinking accelerates decision-making and aligns initiatives.

Looking at examples

For example, when questions arose about small electric vehicle policies at UCT, the d-school brought together teams from legal, safety, property, and insurance. Majikijela explained that through co-creation and live micro-mobility demonstrations, the teams developed safer adoption pathways and a shared reference for future decisions. He stated that a process that could have taken months was resolved efficiently through collaboration and hands-on prototyping.

While digital adoption remains a priority, about 70% of projects underperform, according to recent industry reports. Majikijela noted that design thinking ensures digital initiatives address actual user needs while remaining adaptable. He said iterative testing allows companies to invest in solutions that work rather than speculative rollouts, showing that a strategy rooted in human behaviour is often more important than technology alone.

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Cost-effective ways to innovate

Majikijela explained that with R&D spending in South Africa at just 0.61% of GDP, companies need cost-effective ways to innovate. Design thinking allows organisations to test small-scale prototypes that can evolve into profitable initiatives. He stated that structured testing reduces risk, accelerates learning, and often reveals opportunities missed by larger, high-cost investments.

Inefficient workflows silently erode profitability, according to experts. Design thinking maps processes from multiple perspectives to identify bottlenecks and friction points. Majikijela noted that this insight allows companies to simplify operations, optimise resources, and improve responsiveness.

Practical steps for leaders

Majikijela said that leaders adopting design thinking begin by challenging assumptions, engaging cross-functional teams, and prototyping solutions before scaling. He stated that testing small, learning quickly, and iterating leads to smarter, more practical outcomes.

Majikijela noted that in unpredictable markets, relying on legacy strategies is risky. Organisations that embed human-centred problem-solving and iterative experimentation gain a competitive advantage. He explained that starting small, focusing on real human needs, learning by doing, and fostering collaboration help businesses innovate smarter, cut operational waste, and seize growth opportunities. Complexity becomes an opportunity rather than a barrier, allowing faster and more informed decision-making.

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Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of Briefly News.

Source: Briefly News