Design can be an aid in discovering business opportunities, not only in shaping them as products or services. Particularly, service design instruments can help identify, frame, prototype and assess business ideas that may become entrepreneurial opportunities.
This presentation was made entirely for the purpose of my PhD defense presentation and no more than 10 people were supposed to see it. I have decided to share the file to spread the work for scholarly purposes. This presentation took me three years to make, as such, images were collected from the Internet for research purposes during this timeframe. I collected thousands of pictures and a massive amount of data during this time, so it is possible I'm not attributing other people's pictures correctly. If you see any picture belonging to you and want it removed please let me know. This is non-commercial research work.
1. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| Laura Y. Mata García
| 26º Cycle
| PhD in Design | Coordinator: Francesco Trabucco
| Supervisor: Prof. Alessandro Deserti
| Cosupervisor: Prof. Carlos Teixeira
| Opponent: Dr.Toni-Matti Karjalainen
| Defense Presentation
| 27.04.2014
2. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
2/48
1. WHY THIS TOPIC?
2. EXAMPLES
3. DEFINING THE RESEARCH SPACE
4. KEY TOPICS OF THIS WORK
5. HYPOTHESIS
6. GAP IN THE LITERATURE
7. PROBLEM STATEMENT
8. METHODOLOGY
9. LITERATURE REVIEW
10. CASE STUDIES
11. BASIC ASSUMPTIONS
12. EXPERIMENT DESIGN
13. EXPERIMENT DEVELOPMENT
14. RESULTS
15. CONCLUSIONS
16. BIBLIOGRAPHY
17. PUBLICATIONS
INDEX
3. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
3/48
Net Job Change - Start-ups
Net Job Change - Existing Firms
Source: Business Dynamics Statistics, Tim Kane
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-1,000,000
-2,000,000
-3,000,000
-4,000,000
-5,000,000
01977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
1. WHY THIS TOPIC?
New firms are net job creators while existing firms are net job destroyers (The Kaufman
Foundation, 2010)
4. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
4/48
Source: Thomson Reuters Datastream, Eurostat Reuters graphic/Scott Barber 4/2/2012
92 94 96 98 00 02 04 06 08 10 12
50
40
30
20
10
0
Euro
Introduced
Lehman
Collapse
Unemployment rate - under 25 year olds%
Spain 50.5
Greece 50.4
Portugal 35.4
Italy 31.9
Ireland 31.6
UK 23.5
France 21.7
Germany 8.2
1. WHY THIS TOPIC?
This is especially relevant in the current recession context since entrepreneurship has the
potential to boost employment.
5. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
5/48
1. WHY THIS TOPIC?
“Really, what we’re doing as designers is, ultimately, and
inevitably, designing the business of the companies that
we’re working for. Whether you like it or not, the more
innovative you try to be, the more you are going to affect
the business and the business model.”
-Tim Brown (2005), Speech at the Rotman Business
Design Conference
6. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
6/48
2. EXAMPLES: DYSON
7. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
7/48
2. EXAMPLES: AIRBNB
8. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
8/48
CRISIS
DOWNTURN
UNEMPLOYMENT
ISSUES
GENERATION
OF WEALTH
SPECIFIC INTEREST OF
UNIVERSITIES
ENTREPRENEURSHIP
NEW FIRMS
ROLE OF
DESIGN
3. DEFINING THE RESEARCH SPACE
9. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
9/48
THE PHENOMENON OF DESIGN-LED ENTREPRENEURSHIP
THE ROLE OF DESIGN
IN GENERATING AND
SETTING UP BUSINESS
IDEAS
BUSINESS MODEL
DESIGN
DESIGN AND
ENTREPRENEURSHIP
PRODUCT-ORIENTED
PERSPECTIVE
NEW MODES &
ROLES OF DESIGN.
NEW APPROACHES.
DESIGN AS A
MEDIUM
DESIGN AS
CONTENT
(MAIN OBJECTIVE
OF THE BUSINESS
ACTIVITY)
TO GIVE SHAPE
TO THE OFFERING
TO GIVE SHAPE
TO THE BUSINESS
+BUSINESS IDEA
4. KEY TOPICS OF THE RESEARCH
10. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
10/48
5. HYPOTHESIS
1) Traditional view of design’s contribution to entrepreneurship
BUSINESS
STRATEGY
BUSINESS
IDEA
DESIGN IS THE
BUSINESS
OFFERING
DESIGN
SHAPES THE
BUSINESS
OFFERING
11. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
11/48
5. HYPOTHESIS
DESIGN
BUSINESS
OFFERING
BUSINESS
STRATEGY
BUSINESS
IDEA
2) Design Thinking perspective: “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.” (Brown, 2009)
12. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
12/48
5. HYPOTHESIS
DESIGN
BUSINESS
OFFERING
BUSINESS
STRATEGY
BUSINESS
IDEA
3) The hypothesis of this work: design can take a role in earlier phases of the
entrepreneurial process and act as an instrument to frame, generate, shape,
develop, prototype and assess business ideas that could potentially become
entrepreneurial opportunities.
13. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
13/48
6. GAP IN THE LITERATURE
OPPORTUNITY
DRIVEN
DESIGN
DRIVEN
DESIGN PROCESS
CONTEXT
ANALYSIS
CONCEPT
GENERATION
DETAILED
DEVELOPMENT
INTRODUCTION TO
THE MARKET
ITERACTIVE DISCUSSIONBOTH PROCESSES CAN FEED EACH OTHER
ENTREPRENEURIAL PROCESS
OPPORTUNITY
RECOGNITION
BUSINESS CONCEPT
GENERATION
ORGANIZATION
CREATED
& PRODUCTION
TECHNOLOGY
PRODUCT
OR SERVICE
EXCHANGE
FRONT-END OF INNOVATION NEW PRODUCT DEVELOPMENT
FRONT-END OF ENTREPRENEURIAL
PROCESS
EXECUTION
14. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
14/48
6. GAP IN THE LITERATURE IDENTIFIED
The design discilpline has developed special instruments to manage the uncertainty and
non-linearity of the front-end of innovation of the new product development process.
Influenc
ingFactors
Idea
Selection
Idea
generation and
enrichment
Concept
Generation
Opportunity
Identification
Opportunity
Analysis
To NPD and/or
TSG
ENGINE
(Koen et al. 2001)
15. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
15/48
The purpose of this study is to provide an overview of the role of design in
entrepreneurship and clarify its potential contribution to the generation and
development of entrepreneurial opportunities.
7. PROBLEM STATEMENT
GENERAL OBJECTIVE
• To contribute to an advancement of a designerly approach and clarify the
role of design in the generation and development of entrepreneurial
processes.
SPECIFIC OBJECTIVES
• To codify and evaluate the different models of design-driven
entrepreneurship identified in different contexts and industries.
• To identify design tools that may contribute to the generation/discovery of
business opportunities
• To produce a comprehensive design tool (or toolkit) that enables aspiring
entrepreneurs generate robust business opportunities.
16. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
16/48
NEW FIRM
CREATION
OPPORTUNITY
DISCOVERY
TYPES OF
OPPORTUNITIES
BUSINESS
MODELS
DESIGN PROCESS,
TOOLS
& PROTOTYPING
IN OPPORTUNITY
IDENTIFICATION/
CREATION AND
NEW FIRM
CREATION
CASE STUDIES:
ECOSYSTEM OF
SUPPORT TO
DESIGN-DRIVEN
START-UPS
PILOT
EXPERIENCE
WITH A DESIGN-
DRIVEN
BUSINESS
GENERATION
PLATFORM
TESTING OF
A TOOLKIT OF
DESIGN
TOOLS IN AN
OPPORTUNITY
DISCOVERY
SIMULATION
PROCESS
RESEARCH
RESULTS.
OPEN QUESTIONS
FUTURE
DEVELOPMENTS
LITERATURE
REVIEW
CASE
STUDIES
CASE
STUDIES
ACTION
RESEARCH
+ MODELLING
TESTING
ACTION
RESEARCH
LITERATURE
OVERVIEW
RELEVANCE
EXISTING
APPROACHES
BEST PRACTICES
HISTORICAL &
CONTEMPORARY
PERSPECTIVE
MAPPING
BEST PRACTICES
MAPPING
ESTABLISHMENT
OF
CONTEXTUAL
DIFFERENCES
CODIFYING OF
ENABLING
MODEL
AND TOOLS
ANALISYS OF
RESULTS
ACTION
RESEARCH
+ DESIGNING
8.METHODOLOGY
17. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
17/48
PILOT
EXPERIENCE
WITH A DESIGN-
DRIVEN
BUSINESS
GENERATION
PLATFORM
TESTING OF
A TOOLKIT OF
DESIGN
TOOLS IN AN
OPPORTUNITY
DISCOVERY
SIMULATION
PROCESS
RESEARCH
RESULTS
OPEN QUESTIONS
FUTURE
DEVELOPMENTS
ACTION
RESEARCH
+ MODELLING
TESTING
ACTION
RESEARCH
NEW FIRM
CREATION
OPPORTUNITY
DISCOVERY
TYPES OF
OPPORTUNITIES
BUSINESS
MODELS
DESIGN PROCESS,
TOOLS
& PROTOTYPING
IN OPPORTUNITY
IDENTIFICATION/
CREATION AND
NEW FIRM
CREATION
CASE STUDIES:
ECOSYSTEM OF
SUPPORT TO
DESIGN-DRIVEN
START-UPS
LITERATURE
REVIEW
CASE
STUDIES
CASE
STUDIES
LITERATURE
OVERVIEW
RELEVANCE
EXISTING
APPROACHES
BEST PRACTICES
PRODUCT ORIENTED
AND IT FIRMS
CASE STUDIES
BEST PRACTICES
MAPPING
ESTABLISHMENT
OF
CONTEXTUAL
DIFFERENCES
CODIFYING OF
ENABLING
MODEL
AND TOOLS
ANALISYS OF
RESULTS
ACTION
RESEARCH
+ DESIGNING
CASE STUDIES ACTION RESEARCH
DESK
RESEARCH
8.METHODOLOGY
18. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
18/48
“Opportunity as a creative product in entrepreneurship is the progress (idea + action) along a
continuum ranging from an initial insight to a fully shaped idea about starting and operating a
business”.
Dimo Dimov, 2007
PROCESS MODEL OF ENTREPRENEURIAL VENTURE CREATION. ADAPTED FROM BHAVE (1994)
EXTERNALLY OR
INTERNALLY
SIMULATED
OPPORTUNITY
RECOGNITION
BUSINESS
CONCEPT
PRODUCT CUSTOMER
MARKET
STRATEGIC FEEDBACK OPERATIONAL FEEDBACK
SENSEMAKING PROCESS SUPPLY & DEMAND
BOUNDARY
OPPORTUNITY STAGE TECHNOLOGY SETUP & ORGANIZATION
CREATION STAGE
EXCHANGE STAGE
ORGANIZATION
CREATED
& PRODUCTION
TECHNOLOGY
COMMITMENT TO
VENTURE CREATION
9.LITERATURE REVIEW: ENTREPRENEURIAL OPPORTUNITIES
19. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
19/48
“Opportunity as a creative product in entrepreneurship is the progress (idea + action) along a
continuum ranging from an initial insight to a fully shaped idea about starting and operating a
business”.
Dimo Dimov, 2007
PROCESS MODEL OF ENTREPRENEURIAL VENTURE CREATION. ADAPTED FROM BHAVE (1994)
EXTERNALLY OR
INTERNALLY
SIMULATED
OPPORTUNITY
RECOGNITION
BUSINESS
CONCEPT
PRODUCT CUSTOMER
MARKET
STRATEGIC FEEDBACK OPERATIONAL FEEDBACK
SENSEMAKING PROCESS SUPPLY & DEMAND
BOUNDARY
OPPORTUNITY STAGE TECHNOLOGY SETUP & ORGANIZATION
CREATION STAGE
EXCHANGE STAGE
ORGANIZATION
CREATED
& PRODUCTION
TECHNOLOGY
COMMITMENT TO
VENTURE CREATION
FOCUS OF THE FIRST PHASE OF THE RESEARCH:
THE ENTREPRENEURIAL OPPORTUNITY
9. LITERATURE REVIEW: ENTREPRENEURIAL OPPORTUNITIES
20. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
20/48
9. LITERATURE REVIEW
DISCOVERY CREATION
Opportunities exist, are tangible
entities and are waiting to be
discovered (Shane, 2003)
Opportunities are created by the
actions of the entrepreneurs.
(Wood & McKinley, 2010)
Individuals who are alert, “read
the signs” and
“connect-the-dots” discover
opportunities first.
Entrepreneurs have a vision, and act to
create it, receiving feedback from peers
and the market. They are also able to
build networks of stakeholders and
peers, obtain feedback and learn fast.
Research focuses on cognitive
traits possessed by particularly
“alert” individuals.
Research focuses on consensus
building and network-building
abilities of the entrepreneur.
Entrepreneurs rearrange existing
resources. Discovered
opportunities are not radically
innovative.
Entrepreneurs generate new
knowledge. They tend to be more
innovative and disruptive.
21. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
21/48
• In any case, the discovery or creation process is casual and sloppy.
•Entrepreneurs waste valuable resources like time, money and energy
pursuing unsound ideas.
• Some authors (Bragg & Bragg, 2005; Rae, 2006) have acknowledged
the need to use “creativity” in the early phases of the entrepreneurial
process however none of them acknowledges any potential
contribution of design.
•Designers are formally trained in valuable skills for entrepreneurship
such as dealing with ill-defined problems, heuristics, focusing on
solutions, serving markets and anticipating consumer’s needs and
wishes.
9. LITERATURE REVIEW
22. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
22/48
Business Model Innovation Challenges and Visual Solutions. Adapted from Eppler and Hoffmann
(2009)
Challenges Visual Solutions Facilitate:
Cognitive Complexity
Dominant
logic
Knowledge
Resources
Values
Team
- Absorb complexity
- Organigraphs map and clarify organizational
complexity
- Scenarios enable different views on the future
- Challenge self-imposed constraints
- Enable playful exploration of mindsets
- Sketching fosters “big picture” thinking and abstracting
- Foster shared thinking
- Stimulate thinking
- Inspire
- Integrate viewpoints through sketches and prototypes
- Knowledge sharing
Organizational - Resource maps visualize allocation potential and scope
- Elicit implicit values and trigger value-related dialogues
- Foster mutual learning in teams
- Offers coordination
- Strategy roadmaps create involvement and foster creativity
Areas
9. LITERATURE REVIEW: BUSINESS MODEL DESIGN
23. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
23/48
George and Bock (2011 ):
“the business model narrows entrepreneurial ideation to a definable opportunity,
establishes the relevant goal set that drives entrepreneurial action and organizational
investiture, and bounds the implementation of organizational activities that enact the
opportunity.
9. LITERATURE REVIEW: BUSINESS MODEL DESIGN
Growth Strategy
Competitive Strategy
Market
Segments
Value
Proposition
Costs
Capabilities
Partners The offer to the consumer,
including how and why it
addresses their need / fulfills
their job to be done. How
consumers themselves would
describe the benefit.
What group(s) of
people benefit from the
value proposition, how
many there are now
and in the future.
The skills we need in order to create the
value proposition, particularly the team.
Who will we need to partner with or the
input we are dependent on in order to
develop/deliver the value proposition.
How much it will cost to
initially develop the value
proposition and how
much it will cost to
subsequently market
and deliver it.
Who the existing competitors are and how
we will react to them and likely new entrants
into this space, how we are positioned to win
in the market
How we plan to grow and what we hope our or-
ganisation will be in 5 years, do we plan to sell
and if so to who and when.
Prompts:
How about taking away things from
your offer until you can remove no more
in order to simplify it?
How about using defaults to try to
offer individuals the most suitable
offer immediately?
Prompts:
How about partnering with
companies that accelerate
development of the product?
How about considering which
areas of the business model are
sacred and which can be fulfilled
through partnership?
Prompts:
How about deferring
costs wherever possi -
ble, enabling you to get
paid before you have to
pay suppliers?
How about negotiating
better deals with em-
ployees and suppliers
by offering them a
share of the upside in
your company?
Prompts:
How about shipping fast to
learn early? Do we have the skills
to move and learn fast?
How about focusing on the
minimum offer at launch that
shows real benefit?
Prompts:
How about stopping to consider what
you are great at in order to deliver the
value proposition and reapplying it to
other business opportunities?
How about adding on additional
premium services for your most loyal
customers?
How about looking at other consumer
segments that have similar needs?
Prompts:
How about charging customers less
(of even not charging for something)
in order to build to critical mass fast,
particularly when there are positive
network effects?
How about partnering with potential
future competitors early?
Prompts:
How about exploring which other
groups of consumers are likely to have
similar needs?
How about ensuring that you have a
member of that group available at all
times to act as a consumer advocate?
How about looking for a passionate
sub-segment to market to initially?
Pricing Model
How we will price the value consumer proposition,
whether it be fixed, variable or subscription
pricing. Includes alternative sources of revenue,
particularly important if the consumer is not
expected to pay.
Prompts:
How about offering a subscription
element to your offer to ensure
repeat revenues?
How about offering the base service
for free and then charging for a
premium service?
How about having consumers pay
different amounts based on how much
they benefit?
Distribution
Marketing
How the value proposition is delivered to the
consumer segment - how it is delivered to them
(distribution channel) and how it is communicated
to them (marketing channel). Prompts:
How about ensuring that you have
multiple distribution channels available?
How about tracking platform usage
among your target customer group,
which platforms are growing fastest?
How about using prize funds to engage
the consumer in developing your brand?
How about rewarding your
most passionate consumers for
becoming evangelists?
How about considering who is
the greatest influencer for your
target customers?
Channel
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Revenue Streams
Through which Channels do our Customer Segments
want to be reached?How are we reaching them now?
How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
Channels
Customer Relationships
Customer Segments
channel phases:1. Awareness
How do we raise awarene
ss about our compan
y’s product
s and services
?
2. Evaluation
How do we help custome
rs evaluate
our organiza
tion’s Value Proposit
ion?
3. Purchase
How do we allow custome
rs to purchas
e specific
product
s and services
?
4. Delivery
How do we deliver a Value Proposit
ion to custome
rs?
5. After sales
How do we provide
post-pur
chase custome
r support
?
Mass MarketNiche MarketSegmented
Diversified
Multi-sided Platform
examples
Personal assistanceDedicated Personal Assistance
Self-Service
Automated ServicesCommunitiesCo-creation
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?How are they integrated with the rest of our business model?
How costly are they?
Value Propositions
Key Activities
Key Partners
Key Resources
Cost Structure
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?Customer Relationships?Revenue streams?
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
characteristicsNewness
Performance
Customization“Getting the Job Done”Design
Brand/StatusPrice
Cost ReductionRisk ReductionAccessibility
Convenience/Usability
categories
Production
Problem SolvingPlatform/Network
types of resourcesPhysical
Intellectual (brand patents, copyrights, data)
Human
Financial
motivations for partnerships:
Optimization and econom
y
Reduction of risk and uncertainty
Acquisition of particular resources and activities
is your business more:Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
sample characteristics:Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scaleEconomies of scope
www.businessmodelgeneration.com
The Business Model Canvas
On:
Iteration:
Designed by:
Designed for:
Day
Month
Year
No.
types:
Asset sale
Usage fee
Subscription FeesLending/Renting/LeasingLicensing
Brokerage feesAdvertising
fixed pricingList Price
Product feature dependentCustomer segment dependent
Volume dependent
dynamic pricingNegotiation( bargaining)Yield ManagementReal-time-Market
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IDEO Business Model Framework (2010) Business Model Canvas. (Osterwalder & Pigneur 2010)
24. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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10. CASE STUDIES: PRODUCT-ORIENTED FIRMS
25. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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DESIGN IS THE CONTENT OF THE BUSINESS OFFERING
ENTREPRENEURIAL OPPORTUNITIES ARE CREATED
10. CASE STUDIES: PRODUCT-ORIENTED FIRMS
26. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
26/48
10. CASE STUDIES:SERVICE-ORIENTED FIRMS
27. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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DESIGN SHAPED THE BUSINESS CONCEPT
ENTREPRENEURIAL OPPORTUNITIES ARE DISCOVERED
CASE STUDIES: SERVICE-ORIENTED FIRMS
28. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
28/48
10. CASE STUDIES: SUPPORT SYSTEMS FOR START-UPS
29. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
29/48
10. CASE STUDIES: SUPPORT SYSTEMS FOR START-UPS
ACTORS COVER LATER STAGES OF THE
ENTREPRENEURIAL PROCESS
MOST ENCOURAGE DESIGNERS TO SELF-PRODUCE
OR SELL DESIGN SERVICES
30. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
30/48
The creation of a new venture is a wicked problem and it faces
many of the same problems that a new product or service
development process faces because of the complexity of value
chains and markets:
• High levels of uncertainty and risk.
•The need to deal with systemic problems related to creating an
entire value chain.
•The need to build new networks to develop and sustain the new
businesses
• The difficulty to give incontrovertible proof of the potential
success of the entrepreneurial idea.
11. BASIC ASSUMPTIONS: SIMILARITIES BETWEEN PRODUCT
(OR SERVICE) DESIGN AND NEW VENTURE CREATION
31. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
31/48
Service design tools were designed to tackle many of the issues
that both the design of a new service, and the creation of a new
venture possess:
* Dealing with fuzzy and ill-defined problems
* Creating a network of actors and stakeholders
*Framing and generating ideas
* Prototyping intangible concepts (Blomkvist, 2010)
* Assessing collaboratively feasibility and validity.
Thus, they could facilitate and structure the entrepreneurial
opportunity discovery/creation process.
11.BASIC ASSUMPTIONS: SERVICE DESIGN TOOLS
32. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
32/48
12.ACTION RESEARCH: EXPERIMENT DESIGN
EXPERIMENT
OBJECTIVES
To test the use
of service design
instruments during
a business idea
generation workshop.
The workshop was
part of the Chinese
version of the
Dream:in project and
took place in Beijing,
China on March 23rd
and 24th, 2013.
33. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
33/48
The focus of the experiment is the Believe phase, also known as “The Conclave” the
students are joined by entrepreneurs, investors, experts, knowledge brokers and
knowledge managers in an open innovation workshop. The objective of the workshop is to
transform the dreams and aspirations of the citizens interviewed into ideas that could
potentially become entrepreneurial opportunities, and perhaps even new ventures.
then...
and
or...
,but
if?
THE INVESTOR
THE ENTREPRENEUR
KNOWLEDGE MANAGER
THE EXPERT
KNOWLEDGE BROKER
12. ACTION RESEARCH: EXPERIMENT DESIGN
34. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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1. Selecting useful service design tools.
2. Designing the interactions.
3. Selecting tools according to objectives.
4. Designing simplified versions of the tools
5. Define sample.
12. ACTION RESEARCH: EXPERIMENT DESIGN
35. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
35/48
FOUNDATION
ELEMENTS
Social
Political
Cultural
Context
Entrepreneur’s
Motivation
Cognitive Style
Preferences
Aspirations
Education or
Training
Pre-Phase Zero:
Preliminary
Opportunity
Identification:
Market and
Technology
Analysis
Phase Zero:
Product or
Service
Concept and
Definition
Phase one:
Venture
Definition
and Planning
FRONT-END EXECUTION
Specification and
Design
Prototyping
Tests and Validation
Technology Setup
Organization Setup
Market Launch
DECISION
TO EXPLOIT
(OR NOT TO
EXPLOIT)
EXTERNAL
ELEMENTS
INTERNAL
ELEMENTS
INTERVENTION AREA
12. ACTION RESEARCH: EXPERIMENT DESIGN
36. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
36/48
GROUNDING VISIONING
DEVELOPINGASSESSING
Dream Analysis card
(custom made for the
WS)
Dream Ranking
Tool (custom
made for the WS)
Mindmapping
Personas
Trend Cards (custom
made for the WS)
Scenario Canvas
Value Proposition Tool
Product Snapshot Tool
Ad Poster Tool
Actors and Stakeholders
Matrix
What if? cards
Dream Ideation Tool
(standard Dream:in
methodology format)
Prototype Tool
15 Questions Tool
SWOT analysis
Business Model Canvas
DIVERGENT
THINKING
CONVERGENT
THINKING
12. ACTION RESEARCH: EXPERIMENT DESIGN
* Selected tools were ordered
into four distinctive batches,
according to the workshop
format’s goals.
* The tools were integrated in
a workshop planner, and seven
variables were considered:
- workshop participants
- time
- space
- transitions
- transactions
- tools
- frameworks
- ideas
37. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
37/48
12. ACTION RESEARCH: EXPERIMENT DESIGN
38. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
38/48
13. WORKSHOP DEVELOPMENT
* Minor language
difficulties
* Work flow was faster
* Teams finished one hour
before control group
* Participants “connected
the dots” and immediately
spotted conflisting issues.
* Participants explored
more problems before
moving to developing
solutions.
39. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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13. WORKSHOP DEVELOPMENT- RESULTS: DAY 1
40. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
40/48
13. WORKSHOP DEVELOPMENT: DAY 1 CONTROL GROUP
41. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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13.WORKSHOP DEVELOPMENT: RESULTS DAY 2
42. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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Outcome from team
green 2 during day 1 of
the workshop working
by themselves.
Outcome from team
green 2 during day 2 of
the workshop working
using the service
design tols.
13. WORKSHOP DEVELOPMENT: COMPARISON
* Increase in depth,
complexity and
detail of ideas
* Multiplied amount
of features
*Added order and
structure
*Added different
levels of assessment
43. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
43/48
13. WORKSHOP DEVELOPMENT. DAY 2 - CONTROL GROUP
44. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
44/48
• Detailed more their ideas
• Explored the problems more before moving to a solution
• Worked more efficiently
• Participants focused on the content of ideas
• The tools enabled valorizing tacit knowledge
• Prototyped (roughly) their ideas.
• Assessed collaboratively their feasibility and validity.
• Using the tools provided a sort of “checklist” keeping complexity at bay for participants.
• The tools provided a structure to “fuzzy front-end” activities
• The tools positively influenced the quality of the process and the outputs
14. RESULTS: INSIGHTS FROM THE WORKSHOP
45. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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• The research proposes a new area of intervention for design instruments and design
culture in the front-end of the entrepreneurial process, to actively construct business
ideas that may generate entrepreneurial opportunities.
15. FINAL CONCLUSIONS: ORIGINAL CONTRIBUTION
THEORETICAL
CONTRIBUTION
EXPERIMENTAL
CONTRIBUTION
INSTRUMENTAL
CONTRIBUTION
THEORYPRACTICE
SIMILARITIES BETWEEN THE
FRONT-END OF INNOVATION AND
THE FRONT-END OF THE
ENTREPRENEURIAL PROCESSES
DESIGN OF A SERVICE
DESIGN TOOLKIT FOR
THE GENERATION OF
BUSINESS IDEAS
ENTREPRENEURIAL
OPPORTUNITY IDENTIFICATION
CAN BE SYSTEMATIZED
USING SERVICE DESIGN TOOLS
IN THE DISCOVERY/CREATION
OF ENTREPRENEURIAL
OPPORTUNITIES
46. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
46/48
* Limitations linked to the limitations of the experiment: small sample, unique
cultural context and lack of opportunities to replicate the experiment with
time and resources allocated to this research.
*The research uncovered the possibilities of a new territory for design, as such
it is a “work-in-progress” and cutting edge, without definitive answers, rather,
it brings up new questions.
15. FINAL CONCLUSIONS: LIMITATIONS OF THE RESEARCH
47. DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
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•The Kauffman Foundation (2010) Kauffman Foundation Research Series:The Importance of startups in Job
Creation and Job Destruction. Retrieved from http://www.kauffman.org/uploadedFiles/firm_formation_
importance_of_startups. pdf
• Brown, T. (2009) Change by Design. HarperCollins. New York, NY.
• Koen, P., Ajamian, G., Burkart, R., Clamen, A., Davidson, J., D’Amore, R., Elkins, C., et al. (2001). Providing
clarity and a common language to the“ fuzzy front end”. Research-Technology Management, 44(2), 46–55.
Retrieved from http://www.ingentaconnect.com/content/iri/rtm/2001/00000044/00000002/art00 009
• Dimov,D.(2007),Beyond the Single-Person, Single-Insight Attribution in
Understanding Entrepreneurial Opportunities. Entrepreneurship Theory and Practice,
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(3), pp. 223-242
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nexus. Edgar Elvar Publishing, Inc. Massachusetts, USA
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Perspective. Strategic Entrepreneurship Journal. 4: 66-84.
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16. BIBLIOGRAPHY
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CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26º Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata García
48/48
• Mata García, L. La Mediación entre la Investigación, el Diseño y la Industria: el Ejemplo del
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17. PUBLICATIONS