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Design Thinking: A Better Path to
           Innovation

       InnoFuture, Melbourne, Australia
                    2008

     nathan.com/thoughts/InnoFuture.pdf
Why innovate?
Why innovate?
Why innovate?
Paths to Growth:
• Increase operational efficiencies
• Sell-off assets
• Mergers and acquisitions
• Initial Public Offerings
•“Rebranding”
• Innovation
Why innovate?
Paths to Organic, Lasting Growth:
• Increase operational efficiencies
• Sell-off assets
• Mergers and acquisitions
• Initial Public Offerings
•“Rebranding”
• Innovation
What is innovation?
What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations
What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations
What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations
• A better world
Why can’t most organizations
   innovated effectively?
What’s the right context for
        innovation?
What’s the right context for
         innovation?
        Marketing = inhale
Sales, PR, Advertising, etc. = exhale
What’s the right context for
        innovation?
   Qualitative + Quantitative
What’s the right culture for
       innovation?
What’s the right culture for
              innovation?
Structured Innovators (18%): Dynamic Innovators (39%):
• Formal process             • Strategy guides process
• Led from the middle        • Led from top
• Low collaboration          • Cross functional teams
• Analytic evaluations       • Collaborative
• Iterative                  • Creative environment
• Risks minimized            • Rational inspiration
                             • Risk-taking is accepted
Creative Innovators (26%):
• “Big Ideas” inspire        Ad Hoc Innovators (10%):
• Led from the top           • Accidental innovation
• Often haphazard process    • Innovation not valued
• Focus on creativity        • Creativity not valued
• Risk-taking is accepted    • Haphazard process

                             Innovation Outsourcers (8%):
                             • Relies on consultants
                             • Acquires innovation
Cheskin, 2005                • Focus on marketing/PR
Why aren’t organizations
  creative enough?
Why aren’t organizations
 courageous enough?
Why should innovation be
     sustainable?
Why should innovation be
     sustainable?
Why should innovation be
      meaningful?
Function (Performance):
Does this do what I need?
Price (Value):
Does this do what I need at a
   price that’s worth it?
Emotions (Lifestyle):
Does this make me
   feel good?
Status/Identity (Values):
      Is this me?
Meaning (Reality):
Does this fit into my reality?
Core Meanings:
Accomplishment    Harmony
     Beauty        Justice
    Creation      Oneness
  Community      Redemption
      Duty         Security
 Enlightenment      Truth
   Freedom        Validation
                   Wonder
Meaning:
Experiences:
                           Duration
                               Initiation
                             Immersion                    Intensity
                            Conclusion                    Reflex
Triggers                   Continuation                   Habit
Senses:                                                   Engagement
Sight
Sound
Smell
Taste
Touch
Cognitive:                                                                      Breadth
Concepts                                                                            Product
Symbols                                                                             Service
                                                                                      Brand
                                                                                   Name(s)
                                                                       Channel/Environment
                                                                                    (Space)
                                                                                 Promotion
                                                                                       Price
             Interaction                    Significance
             Passive                        Meaning
             Active                         Status/Identity
             Interactive                    Emotion/Lifestyle
                                            Price
                                            Function
What’s the “right” process
     for innovation?
What’s the “right” process
       for innovation?

         design-led innovation:
  user-centered research, prototyping,
critique, iteration, embracing constraints
What’s the “right” process
     for innovation?
What’s the “right” process
     for innovation?
What’s the “right” process
     for innovation?
What’s the “right” process
     for innovation?
What’s meaningful innovation?
              Corporate
              Meaning           The Focus!
              Priorities


      Team                Customer
     Meaning               Meaning
     Priorities            Priorities
              Competitors’
                Meaning
                Priorities

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InnoFuture Presentation 2008