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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
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How your journey may feel …
Source: http://commons.wikimedia.org/wiki/File:Teststrecke_Roller_Coaster.JPG
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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)
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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
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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
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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
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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
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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.
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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)
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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
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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
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Design Thinking = Strategic Thinking
problem finding
doing the right thing
problem solving
doing the thing right
value creation + value capture = strategy
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Design Thinking = Strategic Thinking problem finding
doing the right thing
problem solving
doing the thing right
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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)
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Image Credit: DT Venn Diagram, Stanford d.School
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“
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
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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
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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
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Design Thinking and Value Creation Cost Avoidance Less sedations, more patients
MRI Scan Technology
Adventure Frame
Image Credit: © 2011-2012 General Electric Company
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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
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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.
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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
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.
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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
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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
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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
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2: Use Empathy for Users & Stakeholders
Viability
Feasibility
Desirability
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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
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3: Embrace Diversity and Multi-disciplinarity
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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
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4: Think holistically and systemic
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5: Generate many, many, many ... new Ideas
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3
6: Find and Iterate Alternative Solutions
Iterations
Alternative Solutions
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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.
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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)
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8: Make conscious Use of Space
LaunchLabs, Berlin (www.launchlabs.de)
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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.
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!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
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UNDERSTAND
OBSERVE
PROBLEM SPACE EXPLORATION
POINT OF VIEW
IDEATE
PROTOTYPE
TEST
SOLUTION SPACE EXPLORATION
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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)
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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)
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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)
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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)
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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)
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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
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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)
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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)
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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)
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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)
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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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