Design Thinking Bootcamp [PDF]

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Design Thinking Bootcamp (2-3 days) Selected slides for a typical professional training

Continuous Innovation ≠ Quick Win

This slideset is an exemplarily excerpt of short input presentations given in my design thinking and innovation management trainings. In the light of design thinking’s current hype I share them with the hope that it is being understood better and becomes a more widespread and accepted way of innovating – without the disappointments that exaggerated expectations may bring along. If you’re interested in professional training and strategy advisory (also beyond design thinking) you’ll find my contact data here. I facilitate all training formats in cooperation with experienced DT coaches (e.g. d.School Potsdam and IDEO alumni).

Design Thinking Bootcamp: Day I Experience the basics of design thinking

“

„

The future is best found in the opportunities that go unnoticed in the present. Peter Drucker

1

How your journey may feel …

Source: http://commons.wikimedia.org/wiki/File:Teststrecke_Roller_Coaster.JPG

5

There is nothing new about “Design Thinking” It’s a way of designerly (entrepreneurial!) doing and thinking which can be seen as »innovator’s common sense«

“

Everything that needs to be said has already been said. But, since no one was listening, everything must be said again.

„

André Paul Guillaume Gide (French author and Nobel Prize literary)

7

IN T PU

The Basics »Design thinking« its origin, nature and use.

Image Credit: New Bauhaus Chicago; Stefanie Di Russo (ithinkidesign.wordpress.com), PhD/Researcher at Swinburne University, Melbourne, Australia

Place - People - Process Design thinking in the media – a sketchy view

‣ Heavy collaboration in multi-disciplinary teams ‣ Space as catalyst ‣ Culture of visualization and prototyping ‣ Radical user perspective ‣ Heavy use of sticky notes …

Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html

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Place - People - Process Design thinking in the media – a sketchy view

‣ Heavy collaboration in multi-disciplinary teams ‣ Space as catalyst ‣ Culture of visualization and prototyping ‣ Radical user perspective ‣ Heavy use of sticky notes …

Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html

9

Place - People - Process Design thinking in the media – a sketchy view

‣ Heavy collaboration in multi-disciplinary teams ‣ Space as catalyst ‣ Culture of visualization and prototyping ‣ Radical user perspective ‣ Heavy use of sticky notes …

Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html

9

Place - People - Process Design thinking in the media – a sketchy view

‣ Heavy collaboration in multi-disciplinary teams ‣ Space as catalyst ‣ Culture of visualization and prototyping ‣ Radical user perspective ‣ Heavy use of sticky notes …

Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html

9

What is »Design«?

design is to design the design of a design. noun verb noun noun 1

a general concept or policy

2

an activity

3

a plan or intention

4

a finished outcome (system, service or product)

cited after John Heskett (former Chair Professor Design, Hong Kong Polytechnic University); adapted from Hardt, M. (2006). Design: The Term Design. 10 Lecture presented at University of Lapland, Rovaniemi Finland. (www.michael-hardt.com/PDF/lectures/design-definition.pdf)

Design Thinking: Why the sudden Interest? Fundamental cultural differences …

problem finding

doing the right thing

problem solving

doing the thing right

value creation + value capture

11

Design Thinking = Strategic Thinking

problem finding

doing the right thing

problem solving

doing the thing right

value creation + value capture The Efficiency Movement: Outsourcing, Total Quality Management (TQM), Six Sigma, Lean Manufacturing, Maximizing Return on Assets, Corporate Redesign, Market Segmentation, Licensing, Line Extensions & Diversification, etc.

12

Design Thinking = Strategic Thinking

problem finding

doing the right thing

problem solving

doing the thing right

value creation + value capture Design is the one business discipline whose primary concern is innovation. When design thinking becomes a core competency, companies become more nimble in the face of rapidly changing markets and new competition.

adapted from Bernhard Roth (Academic Director, d.school Stanford)

13

Design Thinking = Strategic Thinking Value migration and the shift to a »value creation economy«

problem finding

doing the right thing

problem solving

doing the thing right

value creation + value capture = advantage

14

Design Thinking = Strategic Thinking Value migration and the shift to a »value creation economy«

problem finding

doing the right thing

Design Thinking

problem solving

doing the thing right

Agile Lean Start-up

Execute: Classic Lean

15

Design Thinking = Strategic Thinking

problem finding

doing the right thing

problem solving

doing the thing right

value creation + value capture = strategy

17

Design Thinking = Strategic Thinking problem finding

doing the right thing

problem solving

doing the thing right

17

Strategic Thinking and the »Knowledge Funnel« problem finding

problem solving

doing the right thing

doing the thing right

01100111001

Mystery

Heuristic

Algorithm

Code

Embracing and living a »d.mindset« is the first step - and as we think, perfect prerequisite - to successfully understand and apply lean start-up principles and agile development methods.

Image Credit: Nordstrom Innovation Lab (https://secure.nordstrominnovationlab.com/pages/our_process_told_as_our_team_s_timeline)

19

Image Credit: DT Venn Diagram, Stanford d.School

20

“

Design is the expert discipline for relating and connecting floating fields.

Image Credit: DT Venn Diagram, Stanford d.School

Wolfgang Jonas (1999)

„ 20

Design Thinking and Value Creation

Technology

Business Viability

Feasibility

People & Human Values Usability & Desirability

21

Design Thinking and Value Creation

Process Innovation: Manufacturing

Technology

Business Viability

Feasibility

Emotional Innovation: User Interaction and Interface, Relationships, Marketing

People & Human Values

Functional Innovation: Organisational Behavior Marketing & Branding

Usability & Desirability

21

Design Thinking and Value Creation

Process Innovation: Manufacturing

Business

Technology

Viability

Feasibility

E U L VA ATION INNOV

E C N E I R EXPE TION INNOVA

Emotional Innovation: User Interaction and Interface, Relationships, Marketing

=

People & Human Values

Functional Innovation: Organisational Behavior Marketing & Branding

Usability & Desirability

21

Design Thinking and Value Creation Cost Avoidance Less sedations, more patients

MRI Scan Technology

Adventure Frame

Image Credit: © 2011-2012 General Electric Company

22

Design Thinking and Value Creation Cost Avoidance Less sedations, more patients

E U L VA ATION INNOV

MRI Scan Technology

Adventure Frame

Image Credit: © 2011-2012 General Electric Company

22

JaipurKnee :

A Prosthetic Knee Joint for Extreme-Affordability

The JaipurKnee is a high-performance, low-cost prosthetic knee joint for above-knee amputees. Designed in collaboration with Stanford University and the Jaipur Foot Organization (BMVSS), the JaipurKnee’s polymer-based polycentric design provides a stable gait at a fraction of the cost.

SAP Hana

High Performance: Blends gait stability with a natural swinging motion Embrace Affordable: One tenth the cost of comparable polycentric knee joints

d.light

Lightweight: 1.5 lb / 0.68 kg High Range of Motion: 165˚ range of motion enabling kneeling and squatting Universal Design: Works with standard prosthetic leg systems including BMVSS and standardGE pyramid adapter system MRI Adventure Series

The TheSolar SolarBottle BottleBulb Bulbhas hasbeen been Keepto theprovide Change installed installed to provide~55 ~55watts wattsof oflight light

Mayo Clinics

Long Life Span: Benchtop tested to 3-5 years of use Durable Material: Oil-filled nylon polymer self lubricates with use Simple Geometry: Five plastic pieces and four standard fasteners Takes Inspiration Biology: A Liter offrom Light Mimics an anatomical knee’s motion

JaipurKnee

Hippo Roller

Paradigm Shifts, Market Disruptions and Competitive Advantages

High Jumps

Ship Container vs. Dock Workers

GPS vs. Map Navigation

Hilti

Nintendo Wii

Godrej chotuKool

Memory Stick vs. Punched Tape

Wikipedia vs. Encyclopedia

Fluorescent »Computer Furniture«

IN T PU

Design-led Innovation Shared values and principles of a d.culture …

http://online.wsj.com/article/SB10001424127887324744104578475220275737136.html

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1: Have an Outside-in Mindset

inside »

« outside

TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies?

What is our current business model?

What else could we offer?

What other channel could we use?

What customers would we sell to?

Perceived Customer Value = Functional Benefits – Financial Cost

adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation.

26

1: Have an Outside-in Mindset

inside »

« outside

TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies?

What is our current business model?

What else could we offer?

What other channel could we use?

What customers would we sell to?

Perceived Customer Value = Functional Benefits – Financial Cost

CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN What do we need to execute that design?

What business design would create defensible profits?

What could we offer?

What ecosystem exists to meet those priorities?

What customers do we want? What are their priorities?

Perceived Customer Value = Emotional Benefit – Hassle Factor

adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation.

26

1: Have an Outside-in Mindset The ten Schools after Mintzberg

Strategy Formation as …

The »Design School«

Process of Conception



The Planning School

Formal Process



The Positioning School

Analytical Process

The Entrepreneurial School

Visionary Process

The Cognitive School

Mental Process

The Learning School

Emergent Process

The Power School

Process of Negotiation

The Cultural School

Collective Process

The Environmental School

Reactive Process

The Configuration School

Process of Transformation

Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided Tour Through The Wilds of Strategic Mangament. New York: The Free Press.

Inherent in DT



27

1: Have an Outside-in Mindset The ten Schools after Mintzberg

Strategy Formation as …

The »Design School«

Process of Conception



The Planning School

Formal Process



The Positioning School

Analytical Process

The Entrepreneurial School

Visionary Process

The Cognitive School

Mental Process

The Learning School

Emergent Process

The Power School

Process of Negotiation

The Cultural School

Collective Process

The Environmental School

Reactive Process

The Configuration School

Process of Transformation

Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided Tour Through The Wilds of Strategic Mangament. New York: The Free Press.

Inherent in DT

Y G E T A R T TS

N E G R EME

G N I K N I TH 

27

1: Combine Outside-in & Inside-out Innovating with push (proposing) and pull (exploring)

Identify

Business Develop

1

Technology

2

Create

Concepts

Fit them to

3

Users

T C E N CON Understand

Users

3

Create

Concepts

2

Build

1

Business Develop

Technology adapted from Vijay Kumar: Business & Technology-driven Innovation vs. Design Thinking

28

2: Use Empathy for Users & Stakeholders

Viability

Feasibility

Desirability

29

2: Use Empathy for Users & Stakeholders Solution

Viability

Feasibility

What can be financially viable?

What can be done in terms of capabilities and technology?

Desirability What is it, people desire?

Start

29

3: Embrace Diversity and Multi-disciplinarity

30

3: Embrace Diversity and Multi-disciplinarity Physical Design

GRAPHIC DESIGN

WEB DESIGN

MECHANICAL ENGINEERING

HUMAN SCIENCES

PRODUCTION ENGINEERING

PHYSICAL SCIENCES

H.C.I.

HARDWARE ENGINEERING

COMPUTER SCIENCES

Technical & Objective

Human & Subjective

INDUSTRIAL DESIGN

SOFTWARE ENGINEERING

INTERACTION DESIGN

Digital Design after Bill Moggridge, Interaction Design Professions

31

4: Think holistically and systemic

32

5: Generate many, many, many ... new Ideas

33

3

6: Find and Iterate Alternative Solutions

Iterations

Alternative Solutions

34

6: Find and Iterate Alternative Solutions = Market Definition

Customer Functions

Market Industry Z Industry Y Industry X

Business

Customer Groups

Alternative Solutions

after Abell, D. F. (1980). Defining the Business - The Starting Point of Strategic Planning. NJ: Englewood Cliffs.

35

7: Fail early, Fail often – But: Fail smart!

COSTS OF ERRORS

Too late! T Nu es m t& be Ite r o ra f E te: rro rs

Danger: Post-decision dissonance! »Sunk cost fallacy«



e r u l i a F r e p t s o C

Learn here!



 Planning & Development

Procurement & Production PROJECT PROGRESS

Test, Delivery & Launch 36

7: Fail early, Fail often: Design’s Impact on Innovation ROI

Investment / Return

+€

Return

Investment

Time

-€ Image Credit: Charles Owen (1998)

37

8: Make conscious Use of Space

LaunchLabs, Berlin (www.launchlabs.de)

38

The famous D.Mindset

HUMAN CENTERED

BIAS TOWARDS ACTION

RADICAL COLLABORATION

SHOW DON’T TELL

CULTURE OF PROTOTYPING & EXPERIMENTATION

Image Credit: D.Mindsets, d.School Stanford (dschool.stanford.edu)

CRAFT CLARITY

MINDFUL OF PROCESS 39

meth·o

d·ol·o·

IN

noun  g y /ˌmeTH #ˈdäl#j method ē/  ologies , plural

T PU

The sys t e m of prin proced ciples, ures ap practic plied to e s, an any spe c ific bra knowle nch dge

Process, Toolset, Method or what? Annoying discussions around a methodology.

41

!NALYSIS

3YNTHESIS

!BSTRACT

No Need to fear the »Model Mayhem«! &RAME )NSIGHTS h!HAv

%XPLORE #ONCEPTS h%UREKAv

-AKE 0LANS

(YPOTHESIS 

+NOW

+NOW 5SER

-AKE

+NOW #ONTEXT

2EALIZE /FFERINGS

[

0ROTOTYPE 0ILOT ,AUNCH

)MPLEMENT


2ESEARCH

Convergence-Divergence

!

$ELIVERY

2EAL

ID.IIT: Analysis-Synthesis

Engine Service Design (UK)

»Design Chaos«

ABSTRACT

Diamond 2: Service design

Diamond 3: Service production

Initiate

Initiate

Initiate

Create

Select

Define

Vision Document

Create

Select

Define

Create

Select

Define

Sustain

CONCRETE

Diamond 1: Direction setting

Service Blueprint

Spirit of Creation (UK)

St. Gallen

Frameworks

Abstract Conceptualization

Assimilating

DISCOVERY

INTERPRETATION

IDEATION

EXPERIMENTATION

EVOLUTION

d.school Potsdam

IDEO (Educators Toolkit)

Bill Moggridge

Stanford’s d.Modes

Imperatives

Converging Problem Selecting

Reflective Observation

Problem Finding

Solution Finding

Active Experimentation

Solution Selecting

Diverging

Observations

d.school Stanford

Accommodating

Concrete Experience

Solutions

Beckman & Barry

etc. 42 Jeanne Liedtka and Tim Ogilvie

Stanford’s Necktie Flare

ID.IIT: Vijay Kumar

Most Common Generic Models of Creative Thinking

ANALYSIS-SYNTHESIS

S1

S2

S3

S4

S5

RE-ENTRY POINT

CONVERGENCE-DIVERGENCE

S6

CONCRETE-ABSTRACT

43

UNDERSTAND

OBSERVE

PROBLEM SPACE EXPLORATION

POINT OF VIEW

IDEATE

PROTOTYPE

TEST

SOLUTION SPACE EXPLORATION

44

The most popular Design Thinking Process Representation Empathize

Re-Frame

Explore

Execute

UNDERSTAND

OBSERVE

POINT OF VIEW

Talk to Experts

Immerse

Share

Brainstorm

Insight

Research

Observe

Synthesize

Visualize

Big Idea

Experience

Engage

Point of View

Prototype

Sticky Takeaway

PROBLEM SPACE EXPLORATION

IDEATE

PROTOTYPE

TEST

SOLUTION SPACE EXPLORATION

Divergence-Convergence Model increasing complexity

UNDERSTAND “seeking”

increasing certainty

OBSERVE

POINT “solving” OF VIEW

Initial understanding of problem

IDEATE“seeking” PROTOTYPE

TEST “solving”

Problem definition: “reframing”

PROBLEM SPACE EXPLORATION

SOLUTION SPACE EXPLORATION

Analysis-Synthesis Bridge Model Abstract Problem Space

Solution Space

Frameworks

Imperatives Model of what »could be« manifest as

Analysis (think)

distilled to

Model of what »is«

suggest

Synthesis (make)

What »could be«

What »is«

Observations

Solutions Existing – Implicit (Current)

Preferred – Explicit (Future)

Concrete after Dubberly, Evenson & Robinson (2008)

47

Analysis-Synthesis Bridge Model Abstract PRINCIPLES

Frameworks

Imperatives

POINT OF VIEW

IDEATE

PLANS

OBSERVATIONS

Analysis (think)

Observations

PROTOTYPE

Synthesis (make)

OBSERVE TEST

TESTS

Solutions

Concrete after Owen, Kumar (ID.IIT)

48

Analysis-Synthesis Bridge Model Abstract PRINCIPLES

Frameworks

Imperatives

POINT OF VIEW

IDEATE Problem Selecting

PLANS

Problem Finding

OBSERVATIONS

Analysis (think)

Observations

Solution Finding PROTOTYPE

Synthesis (make)

OBSERVE Solution Selecting

TESTS

TEST

Solutions

Concrete after Owen, Kumar (ID.IIT)

48

Analysis-Synthesis Bridge Model Abstract

Frameworks

PRINCIPLES

Imperatives

PLANS

Synthesis (make)

OBSERVATIONS

Analysis (think)

Observations

TESTS

Solutions

Concrete after Owen, Kumar (ID.IIT)

49

Analysis-Synthesis Bridge Model Abstract

Frameworks

PRINCIPLES

Imperatives

PLANS

Synthesis (make)

OBSERVATIONS

Analysis (think)

Observations

TESTS

Solutions

Concrete after Owen, Kumar (ID.IIT)

49

Analysis-Synthesis Bridge Model Abstract

Frameworks

PRINCIPLES

Imperatives

PLANS

Synthesis (make)

OBSERVATIONS

Analysis (think)

Observations

TESTS

Solutions

Concrete after Owen, Kumar (ID.IIT)

49

Analysis-Synthesis Bridge Model Abstract

Frameworks

PRINCIPLES

Imperatives

cloud-cuckoo-land

Academic Isolation PLANS

OBSERVATIONS

Analysis (think)

Observations

Synthesis (make)

slavishly user-centered

Express Test Cycle

TESTS

Solutions

Concrete after Owen, Kumar (ID.IIT)

50

Design as …

Example

Problem Framing

Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool

Design redefines the challenges facing the organization.

Problem Solving Design finds new opportunities by solving existing problems.

Form, Feature & Function Design makes things work better than they did before.

Style Design is the avenue to being hip and cool.

No Conscious Design Design has no perceived value for the organization.

The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle

Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel

Target Microsoft Zune Apple Product Identity Media Markt Private Labels

German Elster Tax Declaration Software TV Remote Controls

Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2)

51

Design as …

Example

Problem Framing

Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool

Design redefines the challenges facing the organization.

Problem Solving Design finds new opportunities by solving existing problems.

Form, Feature & Function Design makes things work better than they did before.

Style Design is the avenue to being hip and cool.

No Conscious Design Design has no perceived value for the organization.

The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle

Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel

Target Microsoft Zune Apple Product Identity Media Markt Private Labels

German Elster Tax Declaration Software TV Remote Controls

Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2)

51

Design as …

Example

Problem Framing

Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool

Design redefines the challenges facing the organization.

Problem Solving Design finds new opportunities by solving existing problems.

Form, Feature & Function Design makes things work better than they did before.

Style Design is the avenue to being hip and cool.

No Conscious Design Design has no perceived value for the organization.

The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle

Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel

Target Microsoft Zune Apple Product Identity Media Markt Private Labels

German Elster Tax Declaration Software TV Remote Controls

Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2)

51

Design as …

Example

Problem Framing

Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool

Design redefines the challenges facing the organization.

Problem Solving Design finds new opportunities by solving existing problems.

Form, Feature & Function Design makes things work better than they did before.

Style Design is the avenue to being hip and cool.

No Conscious Design Design has no perceived value for the organization.

The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle

Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel

Target Microsoft Zune Apple Product Identity Media Markt Private Labels

German Elster Tax Declaration Software TV Remote Controls

Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2)

51

Design as …

Example

Problem Framing

Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool

Design redefines the challenges facing the organization.

Problem Solving Design finds new opportunities by solving existing problems.

Form, Feature & Function Design makes things work better than they did before.

Style Design is the avenue to being hip and cool.

No Conscious Design Design has no perceived value for the organization.

The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle

Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel

Target Microsoft Zune Apple Product Identity Media Markt Private Labels

German Elster Tax Declaration Software TV Remote Controls

Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2)

51

Design as …

Example

Problem Framing

Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool

Design redefines the challenges facing the organization.

Problem Solving Design finds new opportunities by solving existing problems.

Form, Feature & Function Design makes things work better than they did before.

Style Design is the avenue to being hip and cool.

No Conscious Design Design has no perceived value for the organization.

The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle

Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel

Target Microsoft Zune Apple Product Identity Media Markt Private Labels

German Elster Tax Declaration Software TV Remote Controls

Competitive Advantage

Decades

Years

Quarters

Months

z

Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2)

51

Large Scale Systems

Systems and Behavior

Artifact and Experience

Artifact

52

Large Scale Systems

Systems and Behavior

Artifact and Experience

Artifact

52

Large Scale Systems

Systems and Behavior

Artifact and Experience

Artifact

52

Large Scale Systems

Systems and Behavior

the clay street project

Artifact and Experience

Artifact

52

Large Scale Systems

Systems and Behavior

the clay street project

Artifact and Experience

Artifact

52

Pyramid of Design Thinking Practice

HIGH Level of Complexity

Large Scale Systems Policy Design, Systems Design, Infrastructure, Public Service, Environment

System

Systems and Behavior Urban Planning, Architecture | Service Design, Strategic Design | Culture

Service

Artifact and Experience Engineering, Interaction Design, HCI, User Experience, Anthropological Design, HCD

Object

Artifact Product, Interior | Fashion, Jewelry | Graphic, Digital Media LOW

The Pyramid of DT practice: adapted from Stefanie Di Russo (PhD), Swinburne University, Australia

53

Customer Discovery + Problem Discovery + Working Culture + Structured Unstructured Process + Sanity and Reason = Design Thinking 54

IN

ts h g i In s

T PU

e m i T y t i v i Act d e e N

t n e m e t a St

w e i v Inter

S M

s e c i er v

s e g a ess

ts n e m n o r Envi s t c e Obj e l p o Pe

Empathize Know thy users and stakeholders! E r e s U

x

e c n e p er i

l a c i s y h P e v i t i n g o C l a i c So l a r u Cult

3

Image Credit:Tom Fishburne (http://tomfishburne.com)

“

Directly witnessing and experiencing aspects of behavior in the real world is a proven way of inspiring and informing [new] ideas. The insights that emerge from careful observation of people's behavior […] uncover all kinds of opportunities that were not previously evident.

„

Jane Fulton Suri (2005) http://www.thoughtlessacts.com 4

Use, Usability and Meaning

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

5

Use, Usability and Meaning

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

5

Use, Usability and Meaning

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

5

Use, Usability and Meaning Jobs-to-be-done are complex constructs …

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

6

Use, Usability and Meaning Jobs-to-be-done are complex constructs …

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

6

Use, Usability and Meaning Jobs-to-be-done are complex constructs …

Use

Usability

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

7

Use, Usability and Meaning Jobs-to-be-done are complex constructs …

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

8

Use, Usability and Meaning Jobs-to-be-done are complex constructs …

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

8

Use, Usability and Meaning

duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco)

Jobs-to-be-done are complex constructs …

Baskets used in the preparation of mush and bread from the acorn. These Indians are the expert basket makers now living and their baskets demand high prices. After the acorns are Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc d into meal a mound of white sand is built about eighteen inches in height for feet in ter, flattened at the top and hollowed out. A cloth is spread over this, the acorn flour buted evenly around and covered with small fir boughs. During this time a number 5. of This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t stones have been heating in a nearby fire. Water is placed in one of the basketsacorns and heated may be seen lying on the platform. Removing the hull of the acorn is a slow and diffic se stones until moderately hot when the water is poured through these fir boughs onto theThe shell is sometimes cracked with a small stone and the hulls picked off but often operation. or the purpose of leaching out the bitter principle contained in the acorn. As soon is by the teeth of the women. This woman was probably seventy-five or -eight theyas arethis moved ughly leached the meal is placed in another basket and it is filled with water andyears boiled of by age, yet she was removing the shells with her teeth which were absolutely perfect. erring these hot rocks to the basket and reheating them as fast as they are cooled by the This is kept up until it is thoroughly cooked. Enough is cooked to last the family about a or ten days. The mush is kept in a basket. From meal to meal a portion is dipped out into a er basket and reduced to a thin gruel or soup, which is eaten in smaller baskets.

Use

Usability

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

9

Use, Usability and Meaning

duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco)

Jobs-to-be-done are complex constructs …

Baskets used in the preparation of mush and bread from the acorn. These Indians are the expert basket makers now living and their baskets demand high prices. After the acorns are Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc d into meal a mound of white sand is built about eighteen inches in height for feet in ter, flattened at the top and hollowed out. A cloth is spread over this, the acorn flour buted evenly around and covered with small fir boughs. During this time a number 5. of This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t stones have been heating in a nearby fire. Water is placed in one of the basketsacorns and heated may be seen lying on the platform. Removing the hull of the acorn is a slow and diffic se stones until moderately hot when the water is poured through these fir boughs onto theThe shell is sometimes cracked with a small stone and the hulls picked off but often operation. or the purpose of leaching out the bitter principle contained in the acorn. As soon is by the teeth of the women. This woman was probably seventy-five or -eight theyas arethis moved ughly leached the meal is placed in another basket and it is filled with water andyears boiled of by age, yet she was removing the shells with her teeth which were absolutely perfect. erring these hot rocks to the basket and reheating them as fast as they are cooled by the This is kept up until it is thoroughly cooked. Enough is cooked to last the family about a or ten days. The mush is kept in a basket. From meal to meal a portion is dipped out into a er basket and reduced to a thin gruel or soup, which is eaten in smaller baskets.

Use

Usability

Meaning

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

10

Use, Usability and Meaning

duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco)

Jobs-to-be-done are complex constructs …

Baskets used in the preparation of mush and bread from the acorn. These Indians are the expert basket makers now living and their baskets demand high prices. After the acorns are Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc d into meal a mound of white sand is built about eighteen inches in height for feet in ter, flattened at the top and hollowed out. A cloth is spread over this, the acorn flour buted evenly around and covered with small fir boughs. During this time a number 5. of This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t stones have been heating in a nearby fire. Water is placed in one of the basketsacorns and heated may be seen lying on the platform. Removing the hull of the acorn is a slow and diffic se stones until moderately hot when the water is poured through these fir boughs onto theThe shell is sometimes cracked with a small stone and the hulls picked off but often operation. or the purpose of leaching out the bitter principle contained in the acorn. As soon is by the teeth of the women. This woman was probably seventy-five or -eight theyas arethis moved ughly leached the meal is placed in another basket and it is filled with water andyears boiled of by age, yet she was removing the shells with her teeth which were absolutely perfect. erring these hot rocks to the basket and reheating them as fast as they are cooled by the This is kept up until it is thoroughly cooked. Enough is cooked to last the family about a or ten days. The mush is kept in a basket. From meal to meal a portion is dipped out into a er basket and reduced to a thin gruel or soup, which is eaten in smaller baskets.

Use

Usability

D E E N

Meaning

Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

10

Expertise

UNDERSTAND

Empathy

Re-Frame

OBSERVE

POINT OF VIEW

Explore

IDEATE

PROTOTYPE

Execute

TEST

11

Empathy: Immerse, Observe, Engage

See the world through someone else’s eyes

Walk in other people’s shoes

Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski

Immerse yourself into their experiences

12

Empathy: Methods Triangulation

Contextual Interviewing ASK: Engagement What people say they do.

THE RIGHT BALANCE?

TRY: Immersion What people experience.

Participatory Design

LOOK: Observations What people do.

Ethnography 13

The Dispute over Methods

MARKET RESEARCH

INSIGHTS RESEARCH

10 People

100 People 10 Truths

100 Insights

Image Credit: after Polaine, A., Løvlie, L., & Reason, B. (2013). Service design: from insight to implementation. (1st ed.). Rosenfeld Media.; Lightbulb Icon → Idea designed by Björn Andersson from The Noun Project

14

Immerse. Observe. Engage. Experience what your user might experience …

Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski

16

Immerse. Observe. Engage. Experience what your user might experience …

Image Credit: © Klara Lindner for Mobisol GmbH Berlin

17

“

The time, place, conditions, and circumstances within which aspirations are conceived, decisions are made, and product usage takes place have an impact on the levels of satisfaction experienced in the aftermath. Research practice that ignores context is doomed to misunderstanding and misrepresentation. Jane Fulton Suri (2005) http://www.thoughtlessacts.com

„

20

Immerse. Observe. Engage. Be a fly on the wall: The art of unobtrusive research …

Image Credit: © Klara Lindner for Mobisol GmbH Berlin

22

WHERE WHEN MESSAGES

THINKING (framing)

ARTIFACTS HEARING

INTERACTIONS (services)

SEEING

DOING (behavior) Image Credit: © Klara Lindner for Mobisol GmbH Berlin

23

WHERE WHEN MESSAGES

THINKING (framing)

ARTIFACTS HEARING

INTERACTIONS (services)

SEEING

Religion: Christian

DOING (behavior) Image Credit: © Klara Lindner for Mobisol GmbH Berlin

23

WHERE WHEN MESSAGES

THINKING (framing)

ARTIFACTS HEARING

INTERACTIONS (services)

SEEING

Workaround: Beer Cover

Religion: Christian

DOING (behavior) Image Credit: © Klara Lindner for Mobisol GmbH Berlin

23

WHERE WHEN MESSAGES

THINKING (framing)

ARTIFACTS HEARING Potential »Distribution Partner« INTERACTIONS (services)

SEEING

Workaround: Beer Cover

Religion: Christian

DOING (behavior) Image Credit: © Klara Lindner for Mobisol GmbH Berlin

23

Immerse. Observe. Engage. People say one thing but yet do another

People do not always do what you think they do. People do not always do what you tell them to do. People do not always do what they think they do. People do not always do what they say they do. Observation and asking why makes you find out what people really do and need. Image Credit: http://images.businessweek.com/ss/06/05/ethnography/image/01_intro.jpg

23

ts h g i In s

Observation Techniques Advanced ways of structuring your field work e Tim

METHOD

y t i v i Act

What? | How? | Why? ent d e e N

m e t a St

w e i v Inter

S M

s e c i er v

s e g a ess

ts n e m n o r Envi Activity

Time

Insights

s t c e Obj

Interview

e l p o Pe People

Objects

Need Statement

|

Environments

Messages

User Experience

|

What-How-Why?

Services During observation mode, What? | How? | Why? is a tool that can help you drive to deeper levels of observation. This simple scaffolding allows you to move from concrete observations of the happenings of a particular situation to the more abstract potential emotions and motives that are at play in the situation you’re observing. This is a particularly powerful technique to leverage when analyzing photos that your team has taken into the field, both for synthesis purposes, and to direct your team to future areas of needfinding.

Physical

|

Cognitive Social Cultural Emotional

Use

i r e p r Ex

ence

POEMS

|

Set-up: Divide a sheet into three sections: What?, How?, and Why? Start with concrete observations: What is the person you’re observing doing in a particular situation or photograph? Use descriptive phrases packed with adjectives and relative descriptions.

Move to understanding: l a ic s How is the person you’re observing doing what they are doing? Does it require effort? Do they appear y h P rushed? Pained? Does the activity or situation appear to be impacting the user’s state of being either e positively or negatively? Again, use as many descriptive phrases as possible here. v i t i n Cog Step out on a limb of interpretation: Why is the person you’re observing doing what they’re doing, and in the particular way that they are doing l aProbes: Final student i Image Credit - Cultural project of Helle Andersen (http://ciid.dk/education/portfolio/idp11/final-projects/seam-city/) it? This step usually requiresRohde that you make informed guesses regarding motivation and emotions. Step out c o S on a limb/ inBootcamp order to project Bootleg meaning into 2010 the situation that you have been observing. This step will reveal Image Credit - WHW, AEIOU: d.school Stanford assumptions that you should test with users, and often uncovers unexpected realizations about a particular l a r u situation. Cult

Cultural Probes

24

POEMS Field Notes

Designin g for the Base of t he P

h T . c i p o t e h t o t g n i n i a t r e p s r e t e m a r w a , r p e l h a c r s e a l e o s h e r w n c i i t h t s i a l w p k r a o o t w t d o n o a f y n h o p t i a r y g r o r n a c h t Credit: Designing for the Base of the Pyramid, Patrick Whitney, Anjali Kelkar (2004) nd work Image d e 27 n d a i p s a g r a o b d e t s within resea r u j e h e c g r r a a e l s o . e t r y t n i i d v i e c t i p t c l s r a e c a h param arg found pl mework h stifies the

Immerse. Observe. Engage. Enlightening conversations …

Image Credit: © Klara Lindner for Mobisol GmbH Berlin

29

Immerse. Observe. Engage. Enlightening conversations …

30

Immerse. Observe. Engage. Enlightening conversations …

Image Credit: © Klara Lindner for Mobisol GmbH Berlin | http://www.gretchenchern.com/wp-content/uploads/2011/06/contextual_Affinity.jpg

31

The Anatomy of an Interview Explore Emotions Grand Tour

risi

fallin

ng

act

ion

Evoke Stories

climax

Reflection Question Statements

g ac tion

Build Rapport

Wrap-up

resolution

Kick-off Intro

Intro Yourself

exposition Intro Project

after Michael Barry (d.school Stanford, Point Forward) and Aristotle dramatic structure

32

Cast aside your Biases, Listen and Observe

01

Let subjects tell their own story, and listen for the things that elicit emotion, cause them concern or frustration. "If you want to find out what people really need, you have to forget about your problems and worry about their lives." (Dale Carnegie)

Image Credit & Source: d.school Stanford

34

Listen to People's Personal Stories

02 Let them relate their successes and failures. Stories encompass the implicit rules that govern and organize peoples lives and reveal what they find normal, acceptable and true. They reveal moral codes, sources of pride, shames, shoulds and should-nots.

Image Credit & Source: d.school Stanford

35

Contradictions between what People say and do

03

Opportunities for innovation lie within the disconnect between action and words.

Image Credit & Source: d.school Stanford

36

04

Watch for »Work Arounds«

People make do and work around the shortcomings of products and situations. In everyday life, we all come up with "work arounds," clumsy or clever, that we usually are totally unaware of. You must take note.

Image Credit & Source: d.school Stanford

37

Distinguish between Needs and Solutions

05

Needs open up possibilities, solutions constrain them. If you start with a solution then you may overlook the possibility of coming up with an entirely new and revolutionary product or service.

Image Credit & Source: d.school Stanford

39

06

Look beyond the Obvious

Your research may seem so routine and familiar that you feel there is nothing new to be learned. Boredom and frustration easily set in. Stay alert! The epiphanies and insights emerge from the nuances.

Image Credit & Source: d.school Stanford

40

Beginners Mindset

15

Interview Preparation ‣ Brainstorm questions ‣ Discover themes ‣ Refine and memorize questions ‣ Use prompts

41

Interview Preparation ‣ Brainstorm questions ‣ Discover themes ‣ Refine and memorize questions ‣ Use prompts

41

Design Thinking Bootcamp: Day II Your work has only just begun …

Problem Reframing: Point of View Do we actually solve the problem we think we do?

“

If I had an hour to solve a problem and my life depended on the solution, I’d spend the first 55 minutes determining the proper question to ask, for once I know the proper question to ask, I could solve the problem in less than 5 minutes.

„

Albert Einstein

2

IN T PU

Define Blind men and elephant?

3

UNDERSTAND

OBSERVE

POINT OF VIEW

IDEATE

PROTOTYPE

TEST

4

The Knowledge Funnel Mystery

Heuristic

Algorithm

Code

01100111001

Image Credit: adapted from Martin, R. L. (2009). The Reliability Bias - Why Advancing Knowledge is so hard. & Design of Business: Why Design Thinking is the Next Competitive Advantage (pp. 33-56) Mcgraw-Hill Professional.

5

Frame Creation: Defining the »Right Problem« Archaeology Paradox Stakeholders Problem Arena Themes Frames Futures Transformations Connections after Kees Dorst, 2012 (d.confestival Potsdam)

6

Problem Reframing = Synthesis Making Sense of the »mess of data«.

Workspace @ d.school Potsdam

7

Problem Reframing: Tips & Tricks Making Sense of the »mess of data«.

8

Persona Construction Composite characters – the shortcut to empathy.

Image Credit: Cooper, A., & Reimann, R. M. (2003). About Face 2.0: The Essentials of Interaction Design (2nd ed.). Indianapolis: Wiley & Sons.

9

Point of View Framing and re-framing of the problem.

surprising anomaly

User + Need + Insight problem statement

10

User: Kids with cancer. Need: Play and have fun. Feel like a normal child. Insight: Kids participate in everything once they perceive it as an adventure.

“How might we turn MRI scans for children (fearing »medical treatment«) into an adventure?” Image Credit: © 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html)

11

User: Young moms in poor rural areas in developing countries. Need: Always carry baby close to body equals being a good mother. Insight: Low cultural acceptance in many countries to »leave babies alone« (e.g. in incubators).

“How might we create an non-electrical infant incubator that keeps babies close to mother’s body?”

Image Credit: © Embrace (www.embraceglobal.org)

12

User: Kids equipped with hearing aids in rural india Need: Charge them easily without elictricity grid Insight: Families reject them due to increased theft risk of expensive devices and accessories

“How might we design a solar charging system that reduces risk and perceived risk theft?” Image Credit: © Lynx Team @ MIT & RSID’s »Design that matters« course (http://designthatmatters.org/news/dtm-blog/2011/03/dtm_leads_first.php) 13

User: Stressed mother of kids Need: Finally some time to recover and relax Insight: Wants to do sth. for herself

“How might we help Anna to relax more?” 14

User: Stressed mother of kids Need: Finally some time to recover and relax Insight: Wants to do sth. for herself

“How might we help Anna to relax more?” 14

IN T PU

Prototype Ideas made tangible and testable …

Image Credits: © NASA (Gemini Mission 1965); Control Stick: Steve Jurvetson (jurvetson) @ Flickr (http://www.flickr.com/photos/jurvetson/5227637637/sizes/l/in/photostream/)

1

Why Prototype?

Gain empathy

→ get deeper understanding

Explore

→ build to think

Inspire

→ catalyse inspiration

Test

→ learn and refine solutions

2

UNDERSTAND

OBSERVE

POINT OF VIEW

IDEATE

PROTOTYPE

TEST

3

Prototyping Prototyped artifacts may come in many forms ...

Image Credit: © Klara Lindner for Mobisol GmbH Berlin

4

Prototyping Prototyped artifacts may come in many forms ...

Image Credit: Martin Jordan (http://www.service-design-berlin.de/)

5

Prototyping Prototyped artifacts may come in many forms ...

6

Prototyping Prototyped artifacts may come in many forms ...

7

Prototyping Prototyped artifacts may come in many forms ...

Image Credit: Elias Barrasch (http://www.blog.eliasbarrasch.de/)

8

HUMAN CENTERED

BIAS TOWARDS ACTION

RADICAL COLLABORATION

SHOW DON’T TELL

CULTURE OF PROTOTYPING & EXPERIMENTATION

CRAFT CLARITY

MINDFUL OF PROCESS 9

ProtoTypes

Which aspects do you want to represent/test?

Choose testing variable ‣ Looks-like ‣ Works-like ‣ Interacts-like ‣ Feels-like ‣ etc.

10

Prototype Fidelity and Testing Context

“Make sure you are building the right »it« before you build it right”

FIDELITY

High »Mock-up« of the idea: representation as close as possible to the idea

Middle Representation of aspects of the idea

Conceptual representation

Image Credit: Embrace

Restricted

General

Partial

Total

Controlled Environment

Any user, any environment

Final user or environment

Final user + environment

CONTEXT LEVEL

Low

11

Prototype Fidelity and Testing Context

“Make sure you are building the right »it« before you build it right”

FIDELITY

High »Mock-up« of the idea: representation as close as possible to the idea

Middle Representation of aspects of the idea

Conceptual representation

Image Credit: Embrace

Restricted

General

Partial

Total

Controlled Environment

Any user, any environment

Final user or environment

Final user + environment

CONTEXT LEVEL

Low

11

Google Glass’ Lo-fi Prototyping

#1

: e c n e i r e p x E n o i t a t n e m g u A

Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)

12

Google Glass’ Lo-fi Prototyping

#1

: e c n e i r e p x E n o i t a t n e m g u A

Y A D 1

Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)

12

Google Glass’ Lo-fi Prototyping

#1

: e c n e i r e p x E n o i t a t n e m g u A

Options Exploring: Gesture Control

#2

Y A D 1

Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)

12

Google Glass’ Lo-fi Prototyping

#1

: e c n e i r e p x E n o i t a t n e m g u A

N I M 45

Options Exploring: Gesture Control

#2

Y A D 1

Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)

12

Google Glass’ Lo-fi Prototyping

#1

: e c n e i r e p x E n o i t a t n e m g u A

N I M 45

Options Exploring: Gesture Control

#2

Try & Iterate : Shape, Size, Weight

#3

Y A D 1

Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)

12

Google Glass’ Lo-fi Prototyping

#1

: e c n e i r e p x E n o i t a t n e m g u A

N I M 45

Options Exploring: Gesture Control

Y A D 1

#2

½ HOUR

Try & Iterate : Shape, Size, Weight Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)

#3

12

You See: It’s no Rocket Science!

13

IN T PU

Iterate! Test! Ready for the ride?

Image Credit: United States Library of Congress, Prints & Photographs Division, Photochrom Collection, [Circus Rings, Luna Park, Coney Island]

1

HUMAN CENTERED

BIAS TOWARDS ACTION

RADICAL COLLABORATION

SHOW DON’T TELL

CULTURE OF PROTOTYPING & EXPERIMENTATION

CRAFT CLARITY

MINDFUL OF PROCESS 2

No Sales Pitch!

3

How to Test …

1. Let your users experience the prototype 2. Observe their experience 3. Engage them

5

Advanced Design-driven Innovation Bootcamp Follow-up Session I

You want »definitions« - eh? Management Perspective

‣ “A way to instill customer-centricity and empathy [...], to solve complex problems [and a] methodology to foster exploration and experimentation.” (Mootee 2011, p.3) ‣ “A person or organization instilled with that discipline is constantly seeking a fruitful balance between reliability and validity, between art and science, between intuition and analytics, and between exploration and exploitation” (R. L. Martin 2009, p.62) Therefore “[d]esign thinking is the application of integrative thinking to the task of resolving the conflict between reliability and validity, between exploitation and exploration, and between analytical thinking and intuitive thinking. Both ways require a balance of mastery and originality” (ibid, p.165). ‣ “Design thinking is the way designers think: the mental processes they use to design objects, services or systems, as distinct from the end result of elegant and useful products. Design thinking results from the nature of design work: a project-based work flow around ‘wicked’ problems.” (Dunne & R. Martin 2006) ‣ Temporal working definition from a business background (Weatherhead School of Management): “Design is the process of finding and solving non-routine (wicked) problems, often with a focus on bringing new products or services to market. Design is the intentional assembly of systems with interacting parts to achieve some objective. Design is a collection of methods and techniques, often drawn from the fine arts, to creatively solve problems.” (Collopy 2009)

4

You want »definitions« - eh? Learning and Process Perspective

‣ “Design is the creation process through which we employ tools and language to invent artifacts and institutions. As society has evolved, so has our ability to design. [Design thinking as a process has] recognizable phases, and these, while not always in the same order, nearly always begin with analytic phases of search and understanding, and end with synthetic phases of experimentation and invention” (Charles Owen, as cited in Beckman & Barry 2007, p.27). → process of knowledge development, which has both analytical (finding and discovery) and synthetic (invention and making) elements and operates in both the theoretical and practical realm. Practice Perspective

‣ “Design thinking can be described as a discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity, [it] converts need into demand.” (T. Brown 2008)

5

Design Practice and Design Management Perspectives 2000‘s

1990‘s

1980‘s

1970‘s

1960‘s

1950‘s

Innovation & Competitiveness

Brand building

Design Management

The rise of Ergonomics

Involving Industry

Promoting the Nation

„global competition and renewal“

„total experience design – from concept to retail“

„our product portfolio is consistent“

„the user (be it a child or an elderly) is the most important“

„design as part of the industrial product development process“

„We got a prize in Milano!“

„the Chinaphenomenon“

vision

design as a innovation driver

strategy

design for creating experiences for the customer

roadmaps

design as a co-ordinator

product definition

design for user understanding

entire product development process

design as part of a team together with mechanics and marketing

adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki.

product aesthetics „styling“

the designer as a creator

typical statement on design

proximity to the market

typical role for the designer

6

Design Practice and Design Management Perspectives 2000‘s Innovation & ? e u l a V Competitiveness hared

S

„global competition and renewal“ „the Chinaphenomenon“

vision

design as a innovation driver

1990‘s

1980‘s

1970‘s

1960‘s

1950‘s

Brand building

Design Management

The rise of Ergonomics

Involving Industry

Promoting the Nation

„total experience design – from concept to retail“

„our product portfolio is consistent“

„the user (be it a child or an elderly) is the most important“

„design as part of the industrial product development process“

„We got a prize in Milano!“

strategy

design for creating experiences for the customer

roadmaps

design as a co-ordinator

product definition

design for user understanding

entire product development process

design as part of a team together with mechanics and marketing

adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki.

product aesthetics „styling“

the designer as a creator

typical statement on design

proximity to the market

typical role for the designer

6

Design Practice and Design Management Perspectives ’s 20102000‘s

Innovation & ? e u l a V Competitiveness hared

S

„global competition and renewal“ „the Chinaphenomenon“

vision

design as a innovation driver

1990‘s

1980‘s

1970‘s

1960‘s

1950‘s

Brand building

Design Management

The rise of Ergonomics

Involving Industry

Promoting the Nation

„total experience design – from concept to retail“

„our product portfolio is consistent“

„the user (be it a child or an elderly) is the most important“

„design as part of the industrial product development process“

„We got a prize in Milano!“

strategy

design for creating experiences for the customer

roadmaps

design as a co-ordinator

product definition

design for user understanding

entire product development process

design as part of a team together with mechanics and marketing

adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki.

product aesthetics „styling“

the designer as a creator

typical statement on design

proximity to the market

typical role for the designer

6

Who is our customer and what does he value?

Who Know for whom to build.

Examples: Observation and integration of, or adaption to current user practices (e.g. repurposes or hacks)

Examples: Design discourse, design experiments, prototypes

Market Disclosing, User(s) segments, Individual needs

Innovate Value by Design

How

What Know what solutions to build.

Know how to profitably implement this.

How to create, deliver and capture parts of that value?

Business models, Value capture mechanisms

Products & services, new meanings, new experiences

Core principles, practices, processes and tools of higher order design (e.g. heavy collaboration and co-creation, permanent interaction, validity-seeking systems thinking, etc.)

What value do we actually deliver, a.k.a. which business are we in?

Examples: Existing tools and approaches for constructing new user/ experience journeys adapted from Sniukas, M. (2007). Reshaping Strategy: The Content, Process, and Context of Strategic Innovation.

7

IN T PU

Design in Business -orBusiness Design Why a HCD posture is the new competitive advantage

8

Progression of Economic Value

Differentiated

Relevant to Customization

Competitive Position

Stage Experiences

Make Goods

Extract Commodities

Commoditization

Commoditization

Commoditization

Undifferentiated Market

Needs of Customers

Customization

Guide Transformations

Irrelevant to Pricing

Premium 10

Stages of Experience

TRANSFORMATION

Differentiated

EXPERIENCE

Customization SERVICE

Competitive Position

Stage Experiences

PRODUCT

COMMODITY

Make Goods

Extract Commodities

Guide Transformations

Commoditization

Commoditization

Commoditization

Undifferentiated Market

Needs of Customers

Customization

?

Relevant to

Irrelevant to 1¢-2¢ Cup

5¢-25¢ Cup

Pricing €1.00-€2.50 Cup

€3.00-€4.50 Cup

What’s next?

Premium 11

“

If you charge for Stuff, then you are in the commodity business. If you charge for tangible things, then you are in the goods business. If you charge for the activities you execute, then you are in the service business. If you charge for the time customers spend with you, then you are in the experience business.

„

If you charge for the demonstrated outcome the customer achieves, then and only then are you in the transformation business. Pine & Gilmore (1999, p.194) Image Credit: Joe Pine & Jim Gilmore (Source: http://www.strategichorizons.com)

12

How do you strategize?

inside »

« outside

TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies?

What is our current business model?

What else could we offer?

What other channel could we use?

What customers would we sell to?

Perceived Customer Value = Functional Benefits – Financial Cost

adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation.

13

How do you strategize?

inside »

« outside

TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies?

What is our current business model?

What else could we offer?

What other channel could we use?

What customers would we sell to?

Perceived Customer Value = Functional Benefits – Financial Cost

CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN What do we need to execute that design?

What business design would create defensible profits?

What could we offer?

What ecosystem exists to meet those priorities?

What customers do we want? What are their priorities?

Perceived Customer Value = Emotional Benefit – Hassle Factor

adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation.

13

How do you strategize?

TOP-DOWN

Do we talk about the same thing here? Business Opportunities (Organisational, Technological)

Environmental Factors

Internal Change

Market Changes

Strategy & Brand

Competitors Moves

Providers Value Facilitation

Users’ Value Creation

INSIDE-OUT

OUTSIDE-IN Internal Change

Business- & Technology-driven Innovation

Value Creation & Innovation Opportunies

External Change

(Latent) Needs Discovery

Staff Abilities

Alternative Practices & Solutions

Staff Experience

Human-centric Innovation

Business Opportunities

Dispersed Knowledge

BOTTOM-UP

14

Reliability Bias?

Business People

Designer

Reliability vs. Validity

a fundamental predilection gap

100% Reliability

50/50 Mix

Martin, R. L. (2009). Design of Business: Why Design Thinking Is the Next Competitive Advantage. Mcgraw-Hill Professional.

100% Validity

15

The (Danish) Design Ladder th 4

3rd step

2nd step

st 1

step

step

Design as innovation The designer works closely alongside to the company’s management on complete or partial renewal of the total business concept.

Design as process Design is a method integrated early into the development process. The production outcomes requires contributions from several specialists.

Design as styling Design is seen solely as relating to the physical form of the product. This can be the work of a designer, but usually created by others.

Non-design Design is a negligible part of the product development process and usually performed by other professionals than the designer.

SVID. (2003). 10 Points. Attitudes, Profitability and Design Maturity in Swedish Companies (Study). Designs økonomiske effekter” (the economic effects of design). Stockholm: Swedish Industrial Design Foundation.

16

Correlation of Design Activities and Average Growth in Turnover

Design as innovation, 9.0%

Design as process, 8.9%

Design as styling, 6.5%

Non-design, 7.4% 0

1

2

3

4

5

6

7

8

SVID. (2003). 10 Points. Attitudes, Profitability and Design Maturity in Swedish Companies (Study). Designs økonomiske effekter” (the economic effects of design). Stockholm: Swedish Industrial Design Foundation.

9

10

17

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

Transformational

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

Adjacent

Core

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

Transformational

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

Adjacent

Core

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

Transformational

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

Adjacent

Core

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

Transformational

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

Adjacent

Core

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

Transformational

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

Adjacent

s u o u n i ont CCore l a t n e Increm

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

Transformational

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

ng i n i a t s u S Adjacent y r a n o i t Evolu

s u o u n i ont CCore l a t n e Increm

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

gh u o r h t k Brea y r a n o i t u l o v e R Transformational Radical ging n a h c e Gam etc. …

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

ng i n i a t s u S Adjacent y r a n o i t Evolu

s u o u n i ont CCore l a t n e Increm

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

gh u o r h t k Brea y r a n o i t u l o v e R Transformational Radical ging n a h c e Gam etc. …

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

Transformational 10% Adjacent 20%

ng i n i a t s u S Adjacent y r a n o i t Evolu

Core 70%

s u o u n i ont CCore l a t n e Increm

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

gh u o r h t k Brea y r a n o i t u l o v e R Transformational Radical ging n a h c e Gam etc. …

Create new markets/ target new customer needs

Extension / entering of adjacent markets and customers

Existing markets and customers

Transformational 10% Adjacent 20%

ng i n i a t s u S Adjacent y r a n o i t Evolu

Core 70%

10%

s u o u n i ont CCore l a t n e Increm

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

gh u o r h t k Brea y r a n o i t u l o v e R Transformational Radical ging n a h c e Gam etc. …

Create new markets/ target new customer needs

Adjacent 20%

20%

Extension / entering of adjacent markets and customers

Existing markets and customers

Transformational 10%

ng i n i a t s u S Adjacent y r a n o i t Evolu

Core 70%

10%

s u o u n i ont CCore l a t n e Increm

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio.

WHERE TO PLAY

New markets and customers

gh u o r h t k Brea y r a n o i t u l o v e R Transformational Radical ging n a h c e Gam etc. …

Create new markets/ target new customer needs

70%

Adjacent 20%

20%

Extension / entering of adjacent markets and customers

Existing markets and customers

Transformational 10%

ng i n i a t s u S Adjacent y r a n o i t Evolu

Core 70%

10%

s u o u n i ont CCore l a t n e Increm

New capabilities

New business models

Use existing products and assets

Add incremental products and assets

Develop new products and assets

HOW TO WIN

Current capabilities

adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.

18

Innovation ROI: »Black Hole« vs. Options-oriented Investment

Cumulative Cash Flow

+€

Time

Downside risk unlimited

-€ adapted from McGrath, R. G. (2010). Business Models: A Discovery Driven Approach. Long Range Planning, 43(2-3), 247–261.; McGrath, R. G., & Macmillan, I. C. (2009). Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. Harvard Business School Press.

19

Innovation ROI: »Black Hole« vs. Options-oriented Investment

Cumulative Cash Flow

+€

Time

Downside risk contained at any given time

-€ adapted from McGrath, R. G. (2010). Business Models: A Discovery Driven Approach. Long Range Planning, 43(2-3), 247–261.; McGrath, R. G., & Macmillan, I. C. (2009). Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. Harvard Business School Press.

20

Innovation ROI: »Black Hole« vs. Options-oriented Investment

Cumulative Cash Flow

+€

Time

Downside risk contained at any given time

-€ adapted from McGrath, R. G. (2010). Business Models: A Discovery Driven Approach. Long Range Planning, 43(2-3), 247–261.; McGrath, R. G., & Macmillan, I. C. (2009). Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. Harvard Business School Press.

20

Innovation ROI: »Black Hole« vs. Options-oriented Investment

Cumulative Cash Flow

+€

Time

Downside risk contained at any given time

-€ adapted from McGrath, R. G. (2010). Business Models: A Discovery Driven Approach. Long Range Planning, 43(2-3), 247–261.; McGrath, R. G., & Macmillan, I. C. (2009). Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. Harvard Business School Press.

20

Business Model Management Danger zone COMPANY CAN: - Economy - Employees - Production facility - Flexibility - Core competencies

Company Can

Company Will

COMPANY WILL: - Business idea - Leadership preferences - Leadership vision - Goal - Declaration of intent

Primary area of effort

Area of position change

Area of competency development

COMPANY SHOULD: - Competitive situation - Client side - Supplier side - Distribution situation - Entourage factors

Company Should

Von Rosing, M., Rosenberg, A., Chase, G., Rukhshaan, O., & Taylor, J. (2011). Applying real-world BPM in an SAP environment (1st ed.). Bonn; Boston: Galileo Press.

21

Blue Ocean: Four Actions Framework

REDUCE Which factors should be reduced well below the industry‘s standard?

ELIMINATE Which of the factors that the industry takes for granted should be eliminated?

A NEW VALUE CURVE

CREATE Which factors should be created that the industry has never offered?

RAISE Which factors should be raised well above the industry‘s standard?

Image Credit: Kim, W.C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competiton Irrelevant (illustrated ed.). Boston, Mas: Mcgraw-Hill Professional

22

Strategy Canvas: Nintendo Wii (in 2007) Key Activities

Value Proposition

Nintendo Wii

Relationships

Microsoft Xbox 360

Sony PS3

Customer Segments

os Ec

r

Fa cto

un

me s Ga

h Re

Channels Us er

on nC tio Mo

ac

tro l

U GP

U CP

ce Pri

iy ec ti nn Co

DV

vit

D

5.1 lby Do

isk

rd D Ha

s vie Mo

Key Resources

Revenue Streams

ys tem

Va l ue

s t s Co

Cost Structure

aise

/F

e t a n i Elim

C re ate /R

e c u d e R /

Ux

Value Level & Price

Key Partners

23

KP

KA

VP

CR

KR

CS

Nintendo Wii (in 2007)

CS

CH

RS

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

state-of-the-art chip development

male »hardcore gamers« KR

CH

n e w p ro p r ie t ar y te c h n o l o g y

CS

passive immersion with high-end performance and graphics

RS

c o n s o le s e i d i s b su

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

state-of-the-art chip development

g ame de ve l o p e r s male »hardcore gamers«

KR

game developers

CH

n e w p ro p r ie t ar y te c h n o l o g y

CS

passive immersion with high-end performance and graphics

retail distribution

RS

royalties from game developers

c o n s o le s e i d i s b su

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

state-of-the-art chip development

g ame de ve l o p e r s male »hardcore gamers«

KR

game developers

CH

n e w p ro p r ie t ar y te c h n o l o g y

CS

passive immersion with high-end performance and graphics

retail distribution

RS

c o n s o le s e i d i s b su

technology development costs

Nintendo Wii (in 2007)

e l o s n co n o i t c u pro d s cos t

royalties from game developers

eliminate

reduce

create

raise

unchanged

KP

KA

VP

state-of-the-art chip development

e v i t a n r a l te t p e c n o g ame c h re s e a rc o r c i STM c s f o r i n o r e le c t EMS M s r e t e m o r e l ac c e

game developers

CR

mo t i o n c o n t ro l le d g am i ng , t u o y k r r o e w v , o t c r e o sp ic a l r s y h p

n o i t o m l o r t n co y g o l o te c h n

n e w p ro p r ie t ar y te c h n o l o g y

CS

g ame de ve l o p e r s

f un f ac t o r e x pe r , so cial ie n c e f am i l » y

physical activity, social get-together

KR

CS

male »hardcore gamers«

CH

c asua l g ame rs

passive immersion with high-end performance and graphics

families

retail distribution

gi r ls

RS

c o n s o le s e i d i s b su

technology development costs

Nintendo Wii (in 2007)

e l o s n co n o i t c u pro d s cos t

royalties from game developers

eliminate

reduce

create

raise

unchanged

KP

KA

VP

state-of-the-art chip development standard component hardware manufacturers

o r c i STM c s f o r i n o r e le c t EMS M s r e t e m o r e l ac c e

game developers

e v i t a n r a l te t p e c n o g ame c h re s e a rc

CR

mo t i o n c o n t ro l le d g am i ng , t u o y k r r o e w v , o t c r e o sp ic a l r s y h p

n o i t o m l o r t n co y g o l o te c h n

n e w p ro p r ie t ar y te c h n o l o g y

CS

g ame de ve l o p e r s

f un f ac t o r e x pe r , so cial ie n c e f am i l » y

physical activity, social get-together

KR

CS

male »hardcore gamers«

retail store involvement

CH

c asua l g ame rs

passive immersion with high-end performance and graphics

families

retail distribution

gi r ls

RS

c o n s o le s e i d i s b su

technology development costs

Nintendo Wii (in 2007)

e l o s n co n o i t c u pro d s cos t

royalties from game developers

eliminate

reduce

h a rd w s a le s a re pro f i t

create

raise

unchanged

KP

KA

VP

state-of-the-art chip development standard component hardware manufacturers

o r c i STM c s f o r i n o r e le c t EMS M s r e t e m o r e l ac c e

game developers

e v i t a n r a l te t p e c n o g ame c h re s e a rc

CR

mo t i o n c o n t ro l le d g am i ng

g ame de ve l o p e r s

Desirability , t u o y k r r o e w v , o t c r e o sp ic a l r s y h p

f un f ac t o r e x pe r , so cial ie n c e f am i l » y

physical activity, social get-together

KR

n o i t o m l o r t n co y g o l o te c h n

n e w p ro p r ie t ar y te c h n o l o g y

male »hardcore gamers«

retail store involvement

CH

c asua l g ame rs

passive immersion with high-end performance and graphics

Feasibility CS

CS

families

retail distribution

gi r ls

Viability RS

c o n s o le s e i d i s b su

technology development costs

Nintendo Wii (in 2007)

e l o s n co n o i t c u pro d s cos t

royalties from game developers

eliminate

reduce

h a rd w s a le s a re pro f i t

create

raise

unchanged

KP

KA

VP

state-of-the-art chip development standard component hardware manufacturers

o r c i STM c s f o r i n o r e le c t EMS M s r e t e m o r e l ac c e

game developers

e v i t a n r a l te t p e c n o g ame c h re s e a rc

CR

mo t i o n c o n t ro l le d g am i ng

g ame de ve l o p e r s

Desirability , t u o y k r r o e w v , o t c r e o sp ic a l r s y h p

f un f ac t o r e x pe r , so cial ie n c e f am i l » y

physical activity, social get-together

KR

n o i t o m l o r t n co y g o l o te c h n

n e w p ro p r ie t ar y te c h n o l o g y

male »hardcore gamers«

retail store involvement

CH

c asua l g ame rs

Best passive immersion Sustainable with high-end Equilibrium performance and

families

retail distribution

graphics

Feasibility CS

CS

gi r ls

Viability RS

c o n s o le s e i d i s b su

technology development costs

Nintendo Wii (in 2007)

e l o s n co n o i t c u pro d s cos t

royalties from game developers

eliminate

reduce

h a rd w s a le s a re pro f i t

create

raise

unchanged

Key Activities

Value Proposition

Relationships

Customer Segments

Key Partners

Cost Structure

Key Resources

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Revenue Streams Channels

25

Key Activities

Value Proposition

Relationships

Customer Segments

Key Partners

e t a n i Elim

C re ate /R

e c u d e R /

Va l ue

s t s Co

Cost Structure

Key Resources

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

aise

Revenue Streams Channels

25

Key Activities

Value Proposition

Relationships

Best Sustainable Equilibrium

Key Partners

e t a n i Elim

Customer Segments

C re ate /R

e c u d e R /

aise

s t s Co

Va l ue

e u l a v . x ma r o f e r u t p a c y n a p m o c e th

m a x. v a l ue f or t he u se r

Cost Structure

Key Resources

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Revenue Streams Channels

25

Business Model »vs.« Strategy: Business Model Portfolio

Tactics:

BUSINESS MODEL OPTIONS

Tactical set A

A l e d o

M s s e n i s

competitive choices enabled by each business model

Bu

B l e d o ss M

e n i s u B

FIRM

Busin

ess M

Bu

sin

odel

Tactical set B

C Tactical set C

es

sM

od

el

D Tactical set D

Strategy: plan of which business model to adopt

Strategy

Tactics

stage

stage

Casadesus-Masanell, R., & Ricart, J. E. (2010). From Strategy to Business Models and onto Tactics. Long Range Planning, 43(2-3), 195–215.

28

Apple’s Business Ecosystem ®

Other Stakeholders Lowest Production Costs Sponsoring / Discounts High Volume and Planning Certainty

Manufacturing Knowledge

Service Contract Infrastructure Management IP royalties / Commission

Core Value Proposition

Bulk Purchases

???

Reputation and Awareness

Digital Sales Channel with DRM and wide Spread

Media Delivery

Apple on Campus ???

New Business Ideas

IP royalties Personal Data

Apple Platform

Price Premium (Hardware, Media and App Sales) Reputation

Comission

Complementary Offerings

App Purchases Sales Platform

Seamless User Experience

Technical and Sales Training Higher Margins : Apple Price Premium Enriched User Experience

Broad Service Station Covering

Supplying and Enabling Network

Higher Margins via Apple Price Premium TM

Goods & Services Money & Credits Information Intangible Value

31

Value Proposition(s)

y t ie

Transformation

m e st

Doing good

n o i t a s

Or ga ni

Ec os y

So c

Levels of Value

Us

Doing Well

r e

Value for Money

Belonging

Stability Core Values

Wealth

Shared Drivers Wellbeing

Perspectives on Value

EcoEffectiveness

Happieness

Profit

Economy

Experience EcoFootprint

Psychology

Sustainability

Social Responsibility

Livability of the Environment

Reciprocity

Meaningful Life

Sociology

Ecology

Value Proposition(s)

y t ie

Transformation

m e st

Doing good

n o i t a s

Or ga ni

Ec os y

So c

Levels of Value

Us

Doing Well

r e

Value for Money

Belonging

Stability Core Values

Wealth

Shared Drivers Wellbeing

Perspectives on Value

EcoEffectiveness

Happieness

Profit

Economy

Experience EcoFootprint

Psychology

Sustainability

Social Responsibility

Livability of the Environment

Reciprocity

Meaningful Life

Sociology

Ecology

Value Proposition(s)

y t ie

Transformation

m e st

Doing good

n o i t a s

Or ga ni

Ec os y

So c

Levels of Value

Us

Doing Well

r e

Value for Money

Belonging

Stability Core Values

Wealth

Shared Drivers Wellbeing

Perspectives on Value

EcoEffectiveness

Happieness

Profit

Economy

Experience EcoFootprint

Psychology

Sustainability

Social Responsibility

Livability of the Environment

Reciprocity

Meaningful Life

Sociology

Ecology

Sounds logic? It often seems it isn’t …

n o i t a v o n In Design has to

be conceived as …

Then it creates …

design for, design with, and design by

value for, value with, and value from

… users and other »interpreters«.

… users and other stakeholders. 34

Sounds logic? It often seems it isn’t … DESIGN-LED Generative Design Research

Critical Design Cultural Probes

EXPERT MINDSET

Design + Emotion

User-Centered Design

“users” seen as subjects (reactive informers)

Generative Tools

Participatory Design

“ users” seen as partners (active co-creators)

Contexual Inquiry Usability Testing

PARTICIPATORY MINDSET

Lead-User Innovation

“Scandinavian” Methods

Human Factors + Ergonomics Applied Ethnography

RESEARCH-LED adapted from Sanders, L. (2002). From User-Centered to Participatory Design Approaches. In J. Frascara (Ed.), Design and the Social Sciences: Making Connections (1st ed., pp. 1–8). London: Taylor Francis.

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Some References this Workshop/Presentation was based on: Beckman, S. L., & Barry, M. (2007). Innovation as a Learning Process: Embedding Design Thinking. California Management Review, 50(1), 25–56. Boland Jr., R., & Collopy, F. (2004). Managing as Designing (1st ed.). Stanford: Stanford Business Books. Brown, T. (2009). Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation: How Design Thinking Can Transform Organizations and Inspire Innovation. New York: Harper Business. Buchanan, R. (1992). Wicked Problems in Design Thinking. Design Issues, 8(2), 5–21. Cooper, A., Reimann, R., & Cronin, D. (2007). About Face 3: The Essentials of Interaction Design (3rd ed.). Wiley. Kelley, T., & Littman, J. (2001). The Art of Innovation: Lessons in Creativity from IDEO, America’s Leading Design Firm (1st ed.). New York: Crown Business. Kelley, T., & Littman, J. (2005). The Ten Faces of Innovation: IDEO’s Strategies for Defeating the Devil’s Advocate and Driving Creativity Throughout Your Organization. New York: Doubleday. Kimbell, L. (2009, September). Beyond Design Thinking: Design-as-practice and designs-in-practice. Presentation Paper, Saïd Business School, University of Oxford. Krippendorff, K. (2005). Semantic Turn: New Foundations for Design. Boca Raton, Fla.; London: CRC. Kuhn, T. (2012). The Structure of Scientific Revolutions: 50th Anniversary Edition (50th anniversary ed.). University of Chicago Press. Kumar, V. (2012). 101 Design Methods: A Structured Approach for Driving Innovation in Your Organization (1. Auflage.). John Wiley & Sons. Kumar, V., & Whitney, P. (2007). Daily life, not markets: customer-centered design. Journal of Business Strategy, 28(4), 46–58. Liedtka, J. (2000). In Defense of Strategy as Design. California Management Review, 42(3), 8–30. Liedtka, J., & Ogilvie, T. (2011). Designing for growth : a design thinking tool kit for managers. New York: Columbia University Press - Columbia Business School Publishing. Martin, R. L. (2009a). The Opposable Mind: How Successful Leaders Win Through Integrative Thinking. Mcgraw-Hill Professional. Martin, R. L. (2009b). Design of Business: Why Design Thinking Is the Next Competitive Advantage. Mcgraw-Hill Professional. Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. Harvard Business Review. Retrieved May 1, 2013, . Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st Edition.). Springer London. Owen, C. L. (2005a, May 14). Societal Responsibilities. - Growing the Role of Design. . International Conference on Planning and Design, National Cheng Kung University Tainan, Taiwan. Owen, C. L. (2005b, October 21). Design Thinking: What It Is, Why It Is Different, Where It Has New Value. . Presentation Paper, Gwanju, Korea. Owen, C. L. (2007). Design Thinking: Notes on its Nature and Use. Design Research Quarterly, 2(1), 16–27. Simon, H. A. (1996). Sciences of the Artificial (0003 ed.). The Mit Press. Suri, J. F. (2005). Thoughtless Acts?: Observations on Intuitive Design (Ideo, Ed.). Chronicle Books. Ulla Johansson, J. W. The emperor’s new clothes or the magic wand? The past, present and future of design thinking. . Conference paper - peer reviewed, Verganti, R. (2009). Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. Harvard Business Press. Wetter Edman, K. (2011, September). Service Design - A Conceptualization of an emerging Practice. Licentiate Thesis (PhD), Göteborg: Göteborgs Universitet. Konstnärliga Fakulteten. Retrieved November 4, 2011, from http://gupea.ub.gu.se/handle/2077/26679.

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Credits & Attributions This slideset was developed via fruitful exchanges of ideas, thoughts and photo material from and with the following organizations and people: LaunchLabs® Berlin Softgarden® Berlin Service Design Berlin Schach&Matt® Kira Kraemer Klara Lindner Mia Sun Kjaergarrd Elias Barrasch Martin Jordan Holger Rhinow 47

Design-driven strategic business planning Jan Schmiedgen // Fidicinstr. 41 // 10965 Berlin // GERMANY // +49 173 3 83 15 26 // [email protected]

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