The recent article in The Atlantic "The Science of Good Design" makes a very clear case why this is a fallacy and one which more of your colleagues believe than you think. Why? Because design required ego, a masters touch, and a definitive determination of what is valuable that cannot be defined by market research studies or focus groups. Why?
Consumers consume, masters create for consumers. This is the secret of amazing design, and yet the hardest factor for companies and corporations to embrace. Unless of course you are Ferrari or Alessi. Then again, they use focus groups every now and then as well.