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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
1
The future is best found
in the opportunities that go
unnoticed in the present.
Peter Drucker
„“
5Source: http://commons.wikimedia.org/wiki/File:Teststrecke_Roller_Coaster.JPG
How your journey may feel …
Everything that needs to be
said has already been said.
But, since no one was listening,
everything must be said again.
André Paul Guillaume Gide
(French author and Nobel Prize literary)
„
“
7
It’s a way of designerly (entrepreneurial!) doing and thinking which can be seen as »innovator’s common sense«
There is nothing new about “Design Thinking”
The Basics
»Design thinking« its origin, nature and use.
IN
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Image Credit: New Bauhaus Chicago; Stefanie Di Russo (ithinkidesign.wordpress.com), PhD/Researcher at Swinburne University, Melbourne, Australia
9
Design thinking in the media – a sketchy view
Place - People - Process
‣ Heavy collaboration in
multi-disciplinary teams
‣ Space as catalyst
‣ Culture of visualization
and prototyping
‣ Radical user perspective
‣ Heavy use of sticky notes …
Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html
9
Design thinking in the media – a sketchy view
Place - People - Process
‣ Heavy collaboration in
multi-disciplinary teams
‣ Space as catalyst
‣ Culture of visualization
and prototyping
‣ Radical user perspective
‣ Heavy use of sticky notes …
Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html
9
Design thinking in the media – a sketchy view
Place - People - Process
‣ Heavy collaboration in
multi-disciplinary teams
‣ Space as catalyst
‣ Culture of visualization
and prototyping
‣ Radical user perspective
‣ Heavy use of sticky notes …
Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html
9
Design thinking in the media – a sketchy view
Place - People - Process
‣ 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
design is to design the design of a design.
What is »Design«?
cited after John Heskett (former Chair Professor Design, Hong Kong Polytechnic University); adapted from Hardt, M. (2006). Design: The Term Design.
Lecture presented at University of Lapland, Rovaniemi Finland. (www.michael-hardt.com/PDF/lectures/design-definition.pdf)
a general
concept
or policy
1
an activity
2
a plan or intention
3 a finished outcome
(system, service or
product)
4
noun verb noun noun
10
value creation + value capture
Design Thinking: Why the sudden Interest?
11
doing the right thing
problem finding
doing the thing right
problem solving
Fundamental cultural differences …
value creation + value capture
Design Thinking = Strategic Thinking
12
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.
doing the right thing
problem finding
doing the thing right
problem solving
value creation + value capture
Design Thinking = Strategic Thinking
13
doing the right thing
problem finding
doing the thing right
problem solving
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)
value creation + value capture = advantage
Value migration and the shift to a »value creation economy«
Design Thinking = Strategic Thinking
14
doing the right thing
problem finding
doing the thing right
problem solving
Value migration and the shift to a »value creation economy«
Design Thinking = Strategic Thinking
15
doing the right thing
problem finding
doing the thing right
problem solving
Design Thinking
Lean Start-up
Agile
Execute: Classic Lean
value creation + value capture = strategy
Design Thinking = Strategic Thinking
17
doing the right thing
problem finding
doing the thing right
problem solving
Design Thinking = Strategic Thinking
17
doing the right thing
problem finding
doing the thing right
problem solving
Mystery Heuristic Algorithm Code
Strategic Thinking and the »Knowledge Funnel«
01100111001
doing the right thing
problem finding
doing the thing right
problem solving
19
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)
20Image Credit: DT Venn Diagram, Stanford d.School
20
Design is the expert discipline for
relating and connecting floating fields.
Wolfgang Jonas (1999)
„“
Image Credit: DT Venn Diagram, Stanford d.School
21
People & Human Values
Usability & Desirability
Technology
Feasibility
Business
Viability
Design Thinking
and Value Creation
21
People & Human Values
Usability & Desirability
Technology
Feasibility
Business
Viability
Design Thinking
and Value Creation
Emotional Innovation:
User Interaction
and Interface,
Relationships,
Marketing
Functional Innovation:
Organisational Behavior
Marketing & Branding
Process Innovation:
Manufacturing
21
People & Human Values
Usability & Desirability
Technology
Feasibility
Business
Viability
Design Thinking
and Value Creation
Emotional Innovation:
User Interaction
and Interface,
Relationships,
Marketing
Functional Innovation:
Organisational Behavior
Marketing & Branding
Process Innovation:
Manufacturing
=VALUE
INNOVATION
EXPERIENCE
INNOVATION
22Image Credit: © 2011-2012 General Electric Company
MRI Scan
Technology
Adventure
Frame
Cost Avoidance
Less sedations,
more patients
Design Thinking
and Value Creation
22Image Credit: © 2011-2012 General Electric Company
MRI Scan
Technology
Adventure
Frame
Cost Avoidance
Less sedations,
more patients
Design Thinking
and Value Creation
VALUE
INNOVATION
The Solar Bottle Bulb has been
installed to provide ~55 watts of light
The Solar Bottle Bulb has been
installed to provide ~55 watts of light
JaipurKnee
High Performance: Blends gait stability
with a natural swinging motion
Affordable: One tenth the cost of
comparable polycentric knee joints
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
standard pyramid adapter system
A Prosthetic Knee Joint for Extreme-Affordability:
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 from Biology:
Mimics an anatomical knee’s motion
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 Embrace d.light
Keep the Change GE MRI Adventure Series Mayo Clinics
A Liter of Light JaipurKnee Hippo Roller
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«
Paradigm Shifts, Market Disruptions and Competitive Advantages
25
Design-led Innovation
Shared values and principles of a d.culture …
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http://online.wsj.com/article/SB10001424127887324744104578475220275737136.html
26
inside » « outside
Perceived Customer Value = Functional Benefits – Financial Cost
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?
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.
1: Have an Outside-in Mindset
26
inside » « outside
Perceived Customer Value = Functional Benefits – Financial Cost
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?
CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN
What business
design would create
defensible profits?
What customers
do we want? What
are their priorities?
What do we need
to execute that
design?
What
could we
offer?
What ecosystem
exists to meet
those 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.
1: Have an Outside-in Mindset
27
1: Have an Outside-in Mindset
Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided
Tour Through The Wilds of Strategic Mangament. New York: The Free Press.
The ten Schools after Mintzberg Strategy Formation as … Inherent in DT
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
27
1: Have an Outside-in Mindset
Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided
Tour Through The Wilds of Strategic Mangament. New York: The Free Press.
The ten Schools after Mintzberg Strategy Formation as … Inherent in DT
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
EMERGENT STRATEGY
THINKING
1: Combine Outside-in & Inside-out
28
Identify
Business
Develop
Technology
Create
Concepts
Fit them to
Users
Understand
Users
Create
Concepts
Build
Business
Develop
Technology
1 2 3
3 2 1
Innovating with push (proposing) and pull (exploring)
CONNECT
adapted from Vijay Kumar: Business & Technology-driven Innovation vs. Design Thinking
2: Use Empathy for Users & Stakeholders
29
Desirability
Feasibility Viability
2: Use Empathy for Users & Stakeholders
29
Desirability
Feasibility Viability
What can be done in terms of
capabilities and technology?
What can be
financially viable?
Start
What is it, people desire?
Solution
30
3: Embrace Diversity and Multi-disciplinarity
3: Embrace Diversity and Multi-disciplinarity
after Bill Moggridge, Interaction Design Professions
Physical Design
Digital Design
Human&Subjective
Technical&Objective
GRAPHIC
DESIGN
HUMAN
SCIENCES
INDUSTRIAL
DESIGN
INTERACTION
DESIGN
WEB
DESIGN
H.C.I.
PHYSICAL
SCIENCES
MECHANICAL
ENGINEERING
PRODUCTION
ENGINEERING
HARDWARE
ENGINEERING
SOFTWARE
ENGINEERING
COMPUTER
SCIENCES
31
4: Think holistically and systemic
32
3
5: Generate many, many, many ... new Ideas
33
6: Find and Iterate Alternative Solutions
34
Iterations
Alternative
Solutions
35
6: Find and Iterate Alternative Solutions = Market Definition
Market
Business
Industry Z
Industry Y
Industry X
Customer Groups
Alternative Solutions
Customer Functions
after Abell, D. F. (1980). Defining the Business - The Starting Point of Strategic Planning. NJ: Englewood Cliffs.
Planning & Development Procurement & Production Test, Delivery & Launch
7: Fail early, Fail often – But: Fail smart!
36
COSTSOFERRORS
PROJECT PROGRESS
Test &
Iterate:
Num
ber of Errors
Cost per Failure
Danger:
Post-decision dissonance!
»Sunk cost fallacy«
Learn
here!
Too late!



Return
Time
7: Fail early, Fail often: Design’s Impact on Innovation ROI
37
-€
+€
Investment/Return
Image Credit: Charles Owen (1998)
Investment
38
8: Make conscious Use of Space
LaunchLabs, Berlin (www.launchlabs.de)
HUMAN
CENTERED
BIAS TOWARDS
ACTION
SHOW DON’T
TELL
CRAFT CLARITY
RADICAL
COLLABORATION
CULTURE
OF PROTOTYPING &
EXPERIMENTATION
MINDFUL OF
PROCESS
39
The famous D.Mindset
Image Credit: D.Mindsets, d.School Stanford (dschool.stanford.edu)
meth·od·ol·o·gynoun /ˌmeTH#ˈdäl#jē/ 
methodologies, pluralThe system of principles, practices, an
procedures applied to any specific branch
knowledge
41
Process, Toolset,
Method or what?
Annoying discussions around a methodology.
IN
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Convergence-Divergence ID.IIT: Analysis-Synthesis Engine Service Design (UK) »Design Chaos«
Spirit of Creation (UK) St. Gallen d.school Potsdam IDEO (Educators Toolkit)
d.school Stanford Beckman & Barry Bill Moggridge Stanford’s d.Modes
Jeanne Liedtka and Tim Ogilvie Stanford’s Necktie Flare ID.IIT: Vijay Kumar
42
!
Diamond 1: Direction setting Diamond 2: Service design Diamond 3: Service production
Create SelectInitiateInitiate Create Select Define Define Sustain
Vision
Document
Service
Blueprint
Create SelectInitiate Define
Assimilating Converging
Diverging Accommodating
Active
Experimentation
Abstract
Conceptualization
Concrete
Experience
Reflective
Observation
Imperatives
Problem Finding Solution Finding
Problem
Selecting
Solution
Selecting
SolutionsObservations
Frameworks
etc.
No Need to fear the »Model Mayhem«!
ABSTRACT
CONCRETE
DISCOVERY INTERPRETATION IDEATION EXPERIMENTATION EVOLUTION
ANALYSIS-SYNTHESIS CONVERGENCE-DIVERGENCE
RE-ENTRY POINT CONCRETE-ABSTRACT
Most Common Generic Models of Creative Thinking
43
S2 S4 S5 S6S3S1
44
OBSERVE IDEATE PROTOTYPE TESTPOINT
OF VIEW
UNDERSTAND
PROBLEM SPACE EXPLORATION SOLUTION SPACE EXPLORATION
SOLUTION SPACE EXPLORATION
OBSERVE IDEATE PROTOTYPE TESTPOINT
OF VIEW
UNDERSTAND
Empathize Explore ExecuteRe-Frame
Talk to Experts
Research
Experience
Immerse
Observe
Engage
Share
Synthesize
Point of View
Brainstorm
Visualize
Prototype
Insight
Big Idea
Sticky Takeaway
PROBLEM SPACE EXPLORATION
The most popular Design Thinking Process Representation
OBSERVE IDEATE PROTOTYPE TESTPOINT
OF VIEW
UNDERSTAND
Divergence-Convergence Model
“solving” “solving”“seeking”“seeking”
PROBLEM SPACE EXPLORATION SOLUTION SPACE EXPLORATION
Initial
understanding
of problem
increasing complexity increasing certainty
Problem
definition:
“reframing”
Analysis-Synthesis Bridge Model
47after Dubberly, Evenson & Robinson (2008)
Analysis (think)
Concrete
Abstract
Synthesis (make)
What »is«
Model of
what »is«
Model of
what
»could be«
What
»could be«
distilledto
suggest
manifestas
Existing – Implicit
(Current)
Preferred – Explicit
(Future)
Frameworks Imperatives
SolutionsObservations
Problem Space Solution Space
Analysis-Synthesis Bridge Model
48after Owen, Kumar (ID.IIT)
Analysis (think)
Concrete
Abstract
Synthesis (make)
Frameworks Imperatives
Solutions
OBSERVATIONS
PRINCIPLES
PLANS
TESTS
Observations
OBSERVE
IDEATE
PROTOTYPE
TEST
POINT
OF VIEW
Analysis-Synthesis Bridge Model
48after Owen, Kumar (ID.IIT)
Analysis (think)
Concrete
Abstract
Synthesis (make)
Frameworks Imperatives
Solutions
OBSERVATIONS
PRINCIPLES
PLANS
TESTS
Observations
OBSERVE
IDEATE
PROTOTYPE
TEST
POINT
OF VIEW
Solution
Selecting
Problem
Selecting
Solution
Finding
Problem
Finding
Analysis-Synthesis Bridge Model
49after Owen, Kumar (ID.IIT)
Analysis (think)
Concrete
Abstract
Synthesis (make)
Frameworks Imperatives
Solutions
OBSERVATIONS
PRINCIPLES
PLANS
TESTS
Observations
Analysis-Synthesis Bridge Model
49after Owen, Kumar (ID.IIT)
Analysis (think)
Concrete
Abstract
Synthesis (make)
Frameworks Imperatives
Solutions
OBSERVATIONS
PRINCIPLES
PLANS
TESTS
Observations
Analysis-Synthesis Bridge Model
49after Owen, Kumar (ID.IIT)
Analysis (think)
Concrete
Abstract
Synthesis (make)
Frameworks Imperatives
Solutions
OBSERVATIONS
PRINCIPLES
PLANS
TESTS
Observations
Analysis-Synthesis Bridge Model
50after Owen, Kumar (ID.IIT)
Analysis (think)
Concrete
Abstract
Synthesis (make)
Frameworks Imperatives
Solutions
OBSERVATIONS
PRINCIPLES
PLANS
TESTS
Observations
Express Test Cycle
Academic Isolation
slavishly user-centered
cloud-cuckoo-land
51
Design as … Example
Problem Framing
Design redefines the challenges
facing the organization.
Umpqua Bank
Apple iPod/iPhone/iTunes-Ecosystem
DesigningOutCrime Sydney
Nintendo Wii
SAP HANA
Godrej chotuKool
Problem Solving
Design finds new opportunities
by solving existing problems.
The Transtrap
Kickstart Irrigation Pumps
Pangea Organics Packaging
Digital Rights Management
OXO Good Grips
Aquaduct Tricycle
Form, Feature & Function
Design makes things work
better than they did before.
Gillette Mach 3 Razor
Nokia Mobile Phones
Acer Computers
Hewlett Packard Devices
iPod + Wheel
Style
Design is the avenue
to being hip and cool.
Target
Microsoft Zune
Apple Product Identity
Media Markt Private Labels
No Conscious Design
Design has no perceived
value for the organization.
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
Design redefines the challenges
facing the organization.
Umpqua Bank
Apple iPod/iPhone/iTunes-Ecosystem
DesigningOutCrime Sydney
Nintendo Wii
SAP HANA
Godrej chotuKool
Problem Solving
Design finds new opportunities
by solving existing problems.
The Transtrap
Kickstart Irrigation Pumps
Pangea Organics Packaging
Digital Rights Management
OXO Good Grips
Aquaduct Tricycle
Form, Feature & Function
Design makes things work
better than they did before.
Gillette Mach 3 Razor
Nokia Mobile Phones
Acer Computers
Hewlett Packard Devices
iPod + Wheel
Style
Design is the avenue
to being hip and cool.
Target
Microsoft Zune
Apple Product Identity
Media Markt Private Labels
No Conscious Design
Design has no perceived
value for the organization.
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
Design redefines the challenges
facing the organization.
Umpqua Bank
Apple iPod/iPhone/iTunes-Ecosystem
DesigningOutCrime Sydney
Nintendo Wii
SAP HANA
Godrej chotuKool
Problem Solving
Design finds new opportunities
by solving existing problems.
The Transtrap
Kickstart Irrigation Pumps
Pangea Organics Packaging
Digital Rights Management
OXO Good Grips
Aquaduct Tricycle
Form, Feature & Function
Design makes things work
better than they did before.
Gillette Mach 3 Razor
Nokia Mobile Phones
Acer Computers
Hewlett Packard Devices
iPod + Wheel
Style
Design is the avenue
to being hip and cool.
Target
Microsoft Zune
Apple Product Identity
Media Markt Private Labels
No Conscious Design
Design has no perceived
value for the organization.
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
Design redefines the challenges
facing the organization.
Umpqua Bank
Apple iPod/iPhone/iTunes-Ecosystem
DesigningOutCrime Sydney
Nintendo Wii
SAP HANA
Godrej chotuKool
Problem Solving
Design finds new opportunities
by solving existing problems.
The Transtrap
Kickstart Irrigation Pumps
Pangea Organics Packaging
Digital Rights Management
OXO Good Grips
Aquaduct Tricycle
Form, Feature & Function
Design makes things work
better than they did before.
Gillette Mach 3 Razor
Nokia Mobile Phones
Acer Computers
Hewlett Packard Devices
iPod + Wheel
Style
Design is the avenue
to being hip and cool.
Target
Microsoft Zune
Apple Product Identity
Media Markt Private Labels
No Conscious Design
Design has no perceived
value for the organization.
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
Design redefines the challenges
facing the organization.
Umpqua Bank
Apple iPod/iPhone/iTunes-Ecosystem
DesigningOutCrime Sydney
Nintendo Wii
SAP HANA
Godrej chotuKool
Problem Solving
Design finds new opportunities
by solving existing problems.
The Transtrap
Kickstart Irrigation Pumps
Pangea Organics Packaging
Digital Rights Management
OXO Good Grips
Aquaduct Tricycle
Form, Feature & Function
Design makes things work
better than they did before.
Gillette Mach 3 Razor
Nokia Mobile Phones
Acer Computers
Hewlett Packard Devices
iPod + Wheel
Style
Design is the avenue
to being hip and cool.
Target
Microsoft Zune
Apple Product Identity
Media Markt Private Labels
No Conscious Design
Design has no perceived
value for the organization.
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
Design redefines the challenges
facing the organization.
Umpqua Bank
Apple iPod/iPhone/iTunes-Ecosystem
DesigningOutCrime Sydney
Nintendo Wii
SAP HANA
Godrej chotuKool
Problem Solving
Design finds new opportunities
by solving existing problems.
The Transtrap
Kickstart Irrigation Pumps
Pangea Organics Packaging
Digital Rights Management
OXO Good Grips
Aquaduct Tricycle
Form, Feature & Function
Design makes things work
better than they did before.
Gillette Mach 3 Razor
Nokia Mobile Phones
Acer Computers
Hewlett Packard Devices
iPod + Wheel
Style
Design is the avenue
to being hip and cool.
Target
Microsoft Zune
Apple Product Identity
Media Markt Private Labels
No Conscious Design
Design has no perceived
value for the organization.
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)
Competitive Advantage
Decades
Years
Quarters
Months
z
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
Artifact and Experience
Artifact
52
the
clay street
project
Large
Scale Systems
Systems and Behavior
Artifact and Experience
Artifact
52
the
clay street
project
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
Pyramid of Design Thinking Practice
53
The Pyramid of DT practice: adapted from Stefanie Di Russo (PhD), Swinburne University, Australia
LOW
HIGH
Level of Complexity
Customer Discovery
+ Problem Discovery
+ Working Culture
+ Structured Unstructured Process
+ Sanity and Reason
= Design Thinking
54
Activity
Insights
Need Statement
Interview
People
Objects
Environments
Messages
Services
User Experience
Physical
Cognitive
Social
Cultural
Time
3
Empathize
Know thy users and stakeholders!
IN
PU
T
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
5
Use, Usability and Meaning
Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to
Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San
Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)
5
Use, Usability and Meaning
Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to
Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San
Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)
5
Use, Usability and Meaning
Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to
Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San
Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)
6
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)
Jobs-to-be-done are complex constructs …
Use, Usability and Meaning
6
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)
Jobs-to-be-done are complex constructs …
Use, Usability and Meaning
7
Jobs-to-be-done are complex constructs …
Use, Usability and Meaning
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)
8
Jobs-to-be-done are complex constructs …
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)
8
Jobs-to-be-done are complex constructs …
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)
Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc
5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t
acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu
operation. The shell is sometimes cracked with a small stone and the hulls picked off but often
they are moved by the teeth of the women. This woman was probably seventy-five or -eight
years of age, yet she was removing the shells with her teeth which were absolutely perfect.
duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco)
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
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 of
stones have been heating in a nearby fire. Water is placed in one of the baskets and heated
se stones until moderately hot when the water is poured through these fir boughs onto the
or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is
ughly leached the meal is placed in another basket and it is filled with water and boiled by
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.
9
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)
Jobs-to-be-done are complex constructs …
Use, Usability and Meaning
Use Usability
Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc
5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t
acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu
operation. The shell is sometimes cracked with a small stone and the hulls picked off but often
they are moved by the teeth of the women. This woman was probably seventy-five or -eight
years of age, yet she was removing the shells with her teeth which were absolutely perfect.
duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco)
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
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 of
stones have been heating in a nearby fire. Water is placed in one of the baskets and heated
se stones until moderately hot when the water is poured through these fir boughs onto the
or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is
ughly leached the meal is placed in another basket and it is filled with water and boiled by
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.
10
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)
Jobs-to-be-done are complex constructs …
Use, Usability and Meaning
Use Usability
Meaning
Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc
5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t
acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu
operation. The shell is sometimes cracked with a small stone and the hulls picked off but often
they are moved by the teeth of the women. This woman was probably seventy-five or -eight
years of age, yet she was removing the shells with her teeth which were absolutely perfect.
duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco)
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
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 of
stones have been heating in a nearby fire. Water is placed in one of the baskets and heated
se stones until moderately hot when the water is poured through these fir boughs onto the
or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is
ughly leached the meal is placed in another basket and it is filled with water and boiled by
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.
10
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)
Jobs-to-be-done are complex constructs …
Use, Usability and Meaning
Use Usability
Meaning
NEED
11
OBSERVE IDEATE PROTOTYPE TESTPOINT
OF VIEW
UNDERSTAND
Expertise Empathy Explore ExecuteRe-Frame
UNDERSTAND OBSERVE
Empathy: Immerse, Observe, Engage
12
See the world through
someone else’s eyes
Walk in other
people’s shoes
Immerse yourself into
their experiences
Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski
Empathy: Methods Triangulation
13
THE RIGHT
BALANCE?
What people experience.
TRY: Immersion
Participatory Design
What people do.
LOOK: Observations
Ethnography
What people say they do.
ASK: Engagement
Contextual Interviewing
MARKET RESEARCH INSIGHTS RESEARCH
The Dispute over Methods
14
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
100 People
10 Truths
10 People
100 Insights
16
Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski
Experience what your user might experience …
Immerse. Observe. Engage.
17
Experience what your user might experience …
Immerse. Observe. Engage.
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
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
22
Be a fly on the wall: The art of unobtrusive research …
Immerse. Observe. Engage.
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
23
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
ARTIFACTS
DOING
(behavior)
SEEING
THINKING (framing)
WHERE
WHEN
HEARING
INTERACTIONS
(services)
MESSAGES
23
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
ARTIFACTS
DOING
(behavior)
SEEING
THINKING (framing)
WHERE
WHEN
HEARING
INTERACTIONS
(services)
Religion: Christian
MESSAGES
23
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
ARTIFACTS
DOING
(behavior)
SEEING
THINKING (framing)
WHERE
WHEN
HEARING
INTERACTIONS
(services)
Religion: Christian
Workaround:
Beer Cover
MESSAGES
23
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
ARTIFACTS
DOING
(behavior)
SEEING
THINKING (framing)
WHERE
WHEN
HEARING
INTERACTIONS
(services)
Religion: Christian
Workaround:
Beer Cover
Potential »Distribution Partner«
MESSAGES
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.
23
People say one thing but yet do another
Immerse. Observe. Engage.
Image Credit: http://images.businessweek.com/ss/06/05/ethnography/image/01_intro.jpg
Activity
Insights
Need Statement
Interview
People
Objects
Environments
Messages
Services
User Experience
Physical
Cognitive
Social
Cultural
Time
24
Advanced ways of structuring your field work
Observation Techniques
Activity Insights
Need Statement
Interview
People Objects Environments Messages Services
User Experience
Physical
Cognitive
Social
Cultural
Emotional
Time
POEMS
Image Credit - Cultural Probes: Final student project of Helle Rohde Andersen (http://ciid.dk/education/portfolio/idp11/final-projects/seam-city/)
Image Credit - WHW, AEIOU: d.school Stanford / Bootcamp Bootleg 2010
Cultural Probes
What-How-Why?
| |
| |
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.
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:
How is the person you’re observing doing what they are doing? Does it require effort? Do they appear
rushed? Pained? Does the activity or situation appear to be impacting the user’s state of being either
positively or negatively? Again, use as many descriptive phrases as possible here.
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
it? This step usually requires that you make informed guesses regarding motivation and emotions. Step out
on a limb in order to project meaning into the situation that you have been observing. This step will reveal
assumptions that you should test with users, and often uncovers unexpected realizations about a particular
situation.
What? | How? | Why?
METHOD
mework helped researchers do rapid ethnography and work within research parameters pertaining to the topic. Th
found plastic into large jute bags and carry it on foot to a plastic wholesaler, w
stifies the activity.
POEMS Field Notes
27
Designing for the Base of the P
nd work within research paramarg
Image Credit: Designing for the Base of the Pyramid, Patrick Whitney, Anjali Kelkar (2004)
29
Enlightening conversations …
Immerse. Observe. Engage.
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
30
Enlightening conversations …
Immerse. Observe. Engage.
31
Enlightening conversations …
Immerse. Observe. Engage.
Image Credit: © Klara Lindner for Mobisol GmbH Berlin | http://www.gretchenchern.com/wp-content/uploads/2011/06/contextual_Affinity.jpg
The Anatomy of an Interview
32after Michael Barry (d.school Stanford, Point Forward) and Aristotle dramatic structure
exposition
risingaction
climax
fallingaction
resolution
Intro
Kick-off
Build
Rapport
Grand
Tour
Reflection
Wrap-up
Intro
Yourself
Intro
Project
Evoke
Stories
Explore
Emotions
Question
Statements
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)
34
Cast aside your Biases, Listen and Observe
01
Image Credit & Source: d.school Stanford
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.
35
Listen to People's Personal Stories
02
Image Credit & Source: d.school Stanford
Opportunities for innovation lie within
the disconnect between action and words.
36
Contradictions between what People say and do
03
Image Credit & Source: d.school Stanford
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.
37
Watch for »Work Arounds«
04
Image Credit & Source: d.school Stanford
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.
39
Distinguish between Needs and Solutions
05
Image Credit & Source: d.school Stanford
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.
40
Look beyond the Obvious
06
Image Credit & Source: d.school Stanford
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 …
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
Do we actually solve the problem we think we do?
Problem Reframing: Point of View
3
Define
Blind men and elephant?
IN
PU
T
4
OBSERVE IDEATE PROTOTYPE TESTPOINT
OF VIEW
UNDERSTAND POINT
OF VIEW
The Knowledge Funnel
5
Mystery Heuristic Algorithm Code
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.
01100111001
Frame Creation: Defining the »Right Problem«
Archaeology
Paradox
Stakeholders
Problem Arena
Themes
Frames
Futures
Transformations
Connections
6
after Kees Dorst, 2012 (d.confestival Potsdam)
7
Workspace @ d.school Potsdam
Making Sense of the »mess of data«.
Problem Reframing = Synthesis
8
Making Sense of the »mess of data«.
Problem Reframing: Tips & Tricks
9
Composite characters – the shortcut to empathy.
Persona Construction
Image Credit: Cooper, A., & Reimann, R. M. (2003). About Face 2.0: The Essentials of Interaction Design (2nd ed.). Indianapolis: Wiley & Sons.
10
Framing and re-framing of the problem.
Point of View
User + Need + Insight
problem statement
surprising anomaly
11Image Credit: © 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html)
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?”
12Image Credit: © Embrace (www.embraceglobal.org)
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?”
13Image Credit: © Lynx Team @ MIT & RSID’s »Design that matters« course (http://designthatmatters.org/news/dtm-blog/2011/03/dtm_leads_first.php)
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?”
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
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?”
1
IN
PU
T
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/)
Why Prototype?
Gain empathy
Explore
Inspire
Test
2
→ 
 get deeper understanding
→ 
 build to think
→ 
 catalyse inspiration
→ 
 learn and refine solutions
3
OBSERVE IDEATE PROTOTYPE TESTPOINT
OF VIEW
UNDERSTAND PROTOTYPE
4
Prototyped artifacts may come in many forms ...
Prototyping
Image Credit: © Klara Lindner for Mobisol GmbH Berlin
5
Image Credit: Martin Jordan (http://www.service-design-berlin.de/)
Prototyped artifacts may come in many forms ...
Prototyping
6
Prototyped artifacts may come in many forms ...
Prototyping
7
Prototyped artifacts may come in many forms ...
Prototyping
8
Image Credit: Elias Barrasch (http://www.blog.eliasbarrasch.de/)
Prototyped artifacts may come in many forms ...
Prototyping
HUMAN
CENTERED
BIAS TOWARDS
ACTION
SHOW DON’T
TELL
CRAFT CLARITY
RADICAL
COLLABORATION
CULTURE
OF PROTOTYPING &
EXPERIMENTATION
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
High
»Mock-up« of the idea:
representation as close
as possible to the idea
Middle
Representation of
aspects of the idea
Low
Conceptual
representation
Restricted
Controlled Environment
General
Any user, any environment
Partial
Final user or environment
Total
Final user + environment
Prototype Fidelity and Testing Context
11Image Credit: Embrace
FIDELITY
CONTEXTLEVEL
“Make sure you are building the right »it« before you build it right”
High
»Mock-up« of the idea:
representation as close
as possible to the idea
Middle
Representation of
aspects of the idea
Low
Conceptual
representation
Restricted
Controlled Environment
General
Any user, any environment
Partial
Final user or environment
Total
Final user + environment
Prototype Fidelity and Testing Context
11Image Credit: Embrace
FIDELITY
CONTEXTLEVEL
“Make sure you are building the right »it« before you build it right”
12
Google Glass’ Lo-fi Prototyping
Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)
#1
Experience:
Augmentation
12
Google Glass’ Lo-fi Prototyping
1 DAY
Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)
#1
Experience:
Augmentation
12
Google Glass’ Lo-fi Prototyping
1 DAY
Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)
#2
Options Exploring:
Gesture Control#1
Experience:
Augmentation
12
Google Glass’ Lo-fi Prototyping
1 DAY
Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)
#2
Options Exploring:
Gesture Control#1
Experience:
Augmentation
45 MIN
12
Google Glass’ Lo-fi Prototyping
1 DAY
Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)
#3
Try & Iterate:Shape, Size, Weight
#2
Options Exploring:
Gesture Control#1
Experience:
Augmentation
45 MIN
½ HOUR
12
Google Glass’ Lo-fi Prototyping
1 DAY
Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/)
#3
Try & Iterate:Shape, Size, Weight
#2
Options Exploring:
Gesture Control#1
Experience:
Augmentation
45 MIN
You See: It’s no Rocket Science!
13
1
IN
PU
T
Iterate! Test!
Ready for the ride?
Image Credit: United States Library of Congress, Prints & Photographs Division, Photochrom Collection, [Circus Rings, Luna Park, Coney Island]
HUMAN
CENTERED
BIAS TOWARDS
ACTION
SHOW DON’T
TELL
CRAFT CLARITY
RADICAL
COLLABORATION
CULTURE
OF PROTOTYPING &
EXPERIMENTATION
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
2000‘s
Innovation &
Competitiveness
1990‘s
Brand
building
1980‘s
Design
Management
1970‘s
The rise of
Ergonomics
1960‘s
Involving
Industry
1950‘s
Promoting
the Nation
„global competition
and renewal“
„the China-
phenomenon“
„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!“
design as a
innovation
driver
design
for creating
experiences for
the customer
design as a
co-ordinator
design for user
understanding
design as part of a
team together with
mechanics and
marketing
the designer
as a creator
6
Design Practice and Design Management Perspectives
adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland
(PhD Thesis). University of Art and Design, Helsinki, Helsinki.
strategyvision roadmaps
product
definition
entire product
development
process
product
aesthetics
„styling“
typical role
for the
designer
proximity
to the
market
typical
statement on
design
2000‘s
Innovation &
Competitiveness
1990‘s
Brand
building
1980‘s
Design
Management
1970‘s
The rise of
Ergonomics
1960‘s
Involving
Industry
1950‘s
Promoting
the Nation
„global competition
and renewal“
„the China-
phenomenon“
„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!“
design as a
innovation
driver
design
for creating
experiences for
the customer
design as a
co-ordinator
design for user
understanding
design as part of a
team together with
mechanics and
marketing
the designer
as a creator
6
Design Practice and Design Management Perspectives
adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland
(PhD Thesis). University of Art and Design, Helsinki, Helsinki.
strategyvision roadmaps
product
definition
entire product
development
process
product
aesthetics
„styling“
typical role
for the
designer
proximity
to the
market
typical
statement on
design
Shared Value?
2000‘s
Innovation &
Competitiveness
1990‘s
Brand
building
1980‘s
Design
Management
1970‘s
The rise of
Ergonomics
1960‘s
Involving
Industry
1950‘s
Promoting
the Nation
„global competition
and renewal“
„the China-
phenomenon“
„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!“
design as a
innovation
driver
design
for creating
experiences for
the customer
design as a
co-ordinator
design for user
understanding
design as part of a
team together with
mechanics and
marketing
the designer
as a creator
6
Design Practice and Design Management Perspectives
adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland
(PhD Thesis). University of Art and Design, Helsinki, Helsinki.
strategyvision roadmaps
product
definition
entire product
development
process
product
aesthetics
„styling“
typical role
for the
designer
proximity
to the
market
typical
statement on
design
Shared Value?
2010’s
7
Who
WhatHow
Who is our customer and what does he value?
What value do we
actually deliver,
a.k.a. which busi-
ness are we in?
How to create,
deliver and
capture parts
of that value?
Know what
solutions
to build.
Products & services,
new meanings,
new experiences
Know for whom to build.
Market Disclosing,
User(s) segments,
Individual needs
Know how
to profitably
implement this.
Business models,
Value capture mechanisms
Examples:
Observation and
integration of, or
adaption to current
user practices (e.g.
repurposes or hacks)
Examples: Design
discourse, design
experiments,
prototypes
Examples:
Existing tools and approaches
for constructing new user/
experience journeys
Core principles, practices,
processes and tools of higher
order design (e.g. heavy
collaboration and co-creation,
permanent interaction,
validity-seeking systems
thinking, etc.)
Innovate
Value by
Design
adapted from Sniukas, M. (2007). Reshaping Strategy: The Content, Process, and Context of Strategic Innovation.
8
Design in Business -or-
Business Design
Why a HCD posture is the new competitive advantage
IN
PU
T
Progression of Economic Value
10
Differentiated
Undifferentiated
CompetitivePosition
Pricing
NeedsofCustomers
Relevant to
Irrelevant to
Market Premium
Extract
Commodities
Make
Goods
Stage
Experiences
Guide
Transformations
Customization
Customization
Commoditization
Commoditization
Commoditization
11
Differentiated
Undifferentiated
CompetitivePosition
Pricing
NeedsofCustomers
Relevant to
Irrelevant to
Market Premium
Extract
Commodities
Make
Goods
Stage
Experiences
Guide
Transformations
Customization
Customization
Commoditization
Commoditization
Commoditization
Stages of Experience
EXPERIENCE
?
TRANSFORMATION
PRODUCT
SERVICE
COMMODITY
1¢-2¢
Cup
5¢-25¢
Cup
€1.00-€2.50
Cup
€3.00-€4.50
Cup
What’s
next?
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.
12Image Credit: Joe Pine & Jim Gilmore (Source: http://www.strategichorizons.com)
Pine & Gilmore (1999, p.194)
„
“
13
Perceived Customer Value = Functional Benefits – Financial Cost
inside » « outside
How do you strategize?
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?
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
Perceived Customer Value = Functional Benefits – Financial Cost
inside » « outside
How do you strategize?
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?
CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN
What business
design would create
defensible profits?
What customers
do we want? What
are their priorities?
What do we need
to execute that
design?
What
could we
offer?
What ecosystem
exists to meet
those 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.
14BOTTOM-UP
TOP-DOWN
INSIDE-OUT OUTSIDE-IN
Value
Creation &
Innovation
Opportunies
Human-centric
Innovation
Business- &
Technology-driven
Innovation
(Latent) Needs Discovery
Alternative Practices & Solutions
Business Opportunities
Business Opportunities
(Organisational, Technological)
Internal Change
Strategy & Brand
Environmental Factors
Market Changes
Competitors Moves
Staff Abilities
Staff Experience
Dispersed Knowledge
Users’ Value CreationProviders Value Facilitation
Do we talk about the same thing here?
How do you strategize?
Internal Change External Change
Reliability Bias?
15
Business People Designer
100% Reliability 100% Validity
Reliability vs. Validity
a fundamental predilection gap
50/50 Mix
Martin, R. L. (2009). Design of Business: Why Design Thinking Is the Next Competitive Advantage. Mcgraw-Hill Professional.
The (Danish) Design Ladder
16
Non-design
Design is a negligible part of the product development
process and usually performed by other professionals than
the designer.
1st step
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.
2nd step
Design as process
Design is a method integrated early into the development
process. The production outcomes requires contributions
from several specialists.
3rd step
Design as innovation
The designer works closely alongside to the company’s
management on complete or partial renewal of the total
business concept.
4th step
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.
Correlation of Design Activities and Average Growth in Turnover
17
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.
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 9 10
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Continuous
Incremental
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Continuous
Incremental
Sustaining
Evolutionary
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Breakthrough
Revolutionary
Radical
Game-changing
etc. …
Continuous
Incremental
Sustaining
Evolutionary
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Breakthrough
Revolutionary
Radical
Game-changing
etc. …
Transformational
10%
Adjacent
20%
Core
70%
Continuous
Incremental
Sustaining
Evolutionary
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Breakthrough
Revolutionary
Radical
Game-changing
etc. …
Transformational
10%
Adjacent
20%
Core
70%
Continuous
Incremental
Sustaining
Evolutionary
10%
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Breakthrough
Revolutionary
Radical
Game-changing
etc. …
Transformational
10%
Adjacent
20%
Core
70%
Continuous
Incremental
Sustaining
Evolutionary
10%
20%
Innovation Ambition
Be clear about your innovation intent. Balance your innovation portfolio.
18
HOWTOWIN
WHERE TO PLAY
adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013.
New
markets and
customers
Create new markets/
target new customer
needs
Extension /
entering of
adjacent
markets and
customers
Existing
markets and
customers
Transformational
Adjacent
Core
Current capabilities
Use existing products
and assets
New capabilities
Add incremental products
and assets
New business models
Develop new products
and assets
Breakthrough
Revolutionary
Radical
Game-changing
etc. …
Transformational
10%
Adjacent
20%
Core
70%
Continuous
Incremental
Sustaining
Evolutionary
10%
20%
70%
Innovation ROI: »Black Hole« vs. Options-oriented Investment
19
-€
+€
CumulativeCashFlow
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.
Time
Downside risk unlimited
Innovation ROI: »Black Hole« vs. Options-oriented Investment
20
-€
+€
CumulativeCashFlow
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.
Time
Downside risk contained at any given time
Innovation ROI: »Black Hole« vs. Options-oriented Investment
20
-€
+€
CumulativeCashFlow
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.
Time
Downside risk contained at any given time
Innovation ROI: »Black Hole« vs. Options-oriented Investment
20
-€
+€
CumulativeCashFlow
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.
Time
Downside risk contained at any given time
Business Model Management
21
Company
Can
Company
Will
Company
Should
COMPANY WILL:
- Business idea
- Leadership preferences
- Leadership vision
- Goal
- Declaration of intent
COMPANY SHOULD:
- Competitive situation
- Client side
- Supplier side
- Distribution situation
- Entourage factors
COMPANY CAN:
- Economy
- Employees
- Production facility
- Flexibility
- Core competencies
Area of
position
change
Primary
area of
effort
Danger zone
Area of
competency
development
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.
Blue Ocean: Four Actions Framework
22
ELIMINATE
Which of the factors that the
industry takes for granted
should be eliminated?
CREATE
Which factors should be
created that the industry
has never offered?
RAISE
Which factors should be
raised well above the
industry‘s standard?
REDUCE
Which factors should be
reduced well below the
industry‘s standard?
A NEW
VALUE
CURVE
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
Key
Partners
Key
Activities
Value
Proposition Relationships
Channels
Revenue
Streams
Key
Resources
Cost
Structure
Customer
Segments
Movies
HardDisk
Dolby5.1
DVD
Connectivitiy
Price
CPU
GPU
MotionControl
UserReach
Games
Ux/FunFactor
Ecosystem
ValueLevel&Price
Nintendo Wii Microsoft Xbox 360 Sony PS3
Eliminate/Reduce
Costs
Create/Raise
Value
23
Strategy Canvas: Nintendo Wii (in 2007)
KP KA VPVP CR CSKP
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CS
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eliminate reduce create raise unchangedNintendo Wii (in 2007)
KP KA VPVP CR CSKP
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CS
CSCSCS RSRSRS
male
»hardcore
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passive immersion
with high-end
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graphics
new proprietary
technology
state-of-the-art
chip development
console
subsidies
eliminate reduce create raise unchangedNintendo Wii (in 2007)
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VPVP
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CS
CSCSCS RSRSRS
male
»hardcore
gamers«
passive immersion
with high-end
performance and
graphics
new proprietary
technology
state-of-the-art
chip development
console
subsidies
royalties
from game
developers
game
developers
retail
distribution
game
developers
eliminate reduce create raise unchangedNintendo Wii (in 2007)
KP KA VPVP CR CSKP
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VPVP
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CS
CSCSCS RSRSRS
male
»hardcore
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passive immersion
with high-end
performance and
graphics
new proprietary
technology
state-of-the-art
chip development
console
subsidies
technology
development
costs console
production
costs
royalties
from game
developers
game
developers
retail
distribution
game
developers
eliminate reduce create raise unchangedNintendo Wii (in 2007)
KP KA VPVP CR CSKP
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VPVP
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CS
CSCSCS RSRSRS
male
»hardcore
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passive immersion
with high-end
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graphics
STMicro-
electronics for
MEMS
accelerometers
new proprietary
technology
state-of-the-art
chip development
console
subsidies
technology
development
costs console
production
costs
royalties
from game
developers
casual
gamers
game
developers
families
girls
retail
distribution
game
developers
eliminate reduce create raise unchangedNintendo Wii (in 2007)
motion
control
technology
alternative
game concept
research
motion
controlled
gaming
physical activity,
social get-together
sport, workout,
physical recovery
fun factor, socialexperience »family
KP KA VPVP CR CSKP
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VPVP
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CS
CSCSCS RSRSRS
male
»hardcore
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passive immersion
with high-end
performance and
graphics
STMicro-
electronics for
MEMS
accelerometers
new proprietary
technology
state-of-the-art
chip development
console
subsidies
technology
development
costs console
production
costs
royalties
from game
developers
hardwaresales profit
casual
gamers
game
developers
families
girls
retail
distribution
game
developers
standard
component
hardware
manufacturers
eliminate reduce create raise unchangedNintendo Wii (in 2007)
motion
control
technology
alternative
game concept
research
motion
controlled
gaming
retail store
involvement
physical activity,
social get-together
sport, workout,
physical recovery
fun factor, socialexperience »family
KP KA VPVP CR CSKP
KR
VPVP
CH
CS
CSCSCS RSRSRS
male
»hardcore
gamers«
passive immersion
with high-end
performance and
graphics
STMicro-
electronics for
MEMS
accelerometers
new proprietary
technology
state-of-the-art
chip development
console
subsidies
technology
development
costs console
production
costs
royalties
from game
developers
hardwaresales profit
casual
gamers
game
developers
families
girls
retail
distribution
game
developers
standard
component
hardware
manufacturers
eliminate reduce create raise unchangedNintendo Wii (in 2007)
motion
control
technology
alternative
game concept
research
motion
controlled
gaming
retail store
involvement
physical activity,
social get-together
sport, workout,
physical recovery
fun factor, socialexperience »family
Feasibility Viability
Desirability
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MEMS
accelerometers
new proprietary
technology
state-of-the-art
chip development
console
subsidies
technology
development
costs console
production
costs
royalties
from game
developers
hardwaresales profit
casual
gamers
game
developers
families
girls
retail
distribution
game
developers
standard
component
hardware
manufacturers
eliminate reduce create raise unchangedNintendo Wii (in 2007)
motion
control
technology
alternative
game concept
research
motion
controlled
gaming
retail store
involvement
physical activity,
social get-together
sport, workout,
physical recovery
fun factor, socialexperience »family
Feasibility Viability
Desirability
Best
Sustainable
Equilibrium
25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)
Key
Partners
Key
Activities
Value
Proposition Relationships
Channels
Revenue
Streams
Key
Resources
Cost
Structure
Customer
Segments
25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)
Key
Partners
Key
Activities
Value
Proposition Relationships
Channels
Revenue
Streams
Key
Resources
Cost
Structure
Customer
Segments
Eliminate/Reduce
Costs
Create/Raise
Value
25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)
Key
Partners
Key
Activities
Value
Proposition Relationships
Channels
Revenue
Streams
Key
Resources
Cost
Structure
Customer
Segments
Eliminate/Reduce
Costs
Create/Raise
Value
Best
Sustainable
Equilibrium
max. value
capture for
the company
max. valuefor the user
28
FIRM
Business Model A
Business Model B
Business Model C
Business Model D
BUSINESS
MODEL
OPTIONS
Strategy:
plan of which business model to adopt
Tactics:
competitive choices
enabled by each
business model
Strategy
stage
Tactics
stage
Tactical set C
Tactical set D
Tactical set B
Tactical set A
Business Model »vs.« Strategy: Business Model Portfolio
Casadesus-Masanell, R., & Ricart, J. E. (2010). From Strategy to Business Models and onto Tactics. Long Range Planning, 43(2-3), 195–215.
Core Value
Proposition
Complementary
Offerings
Supplying and
Enabling Network
Other
Stakeholders
®®
TM
Apple’s Business Ecosystem
31
Higher Margins
via Apple Price
Premium
Lowest
Production
Costs
Goods & Services
Money & Credits
Information
Intangible Value
High Volume and
Planning Certainty
Manufacturing
Knowledge
Reputation
???
IP royalties
Seamless User
Experience
Enriched User
Experience
App
Purchases
Comission
Sales Platform
Apple
Platform
New Business Ideas
Higher Margins :
Apple Price
Premium
Broad Service
Station Covering
Technical and
Sales Training
Digital Sales Channel with
DRM and wide Spread
Media Delivery
???
IP royalties / Commission
Infrastructure
Management
Service Contract
Sponsoring / Discounts
Apple on Campus
Bulk Purchases
Reputation and
Awareness
Personal
Data
Price Premium
(Hardware,
Media and
App Sales)
Perspectives
on Value
Levels of
Value
Sociology
Ecology
Psychology
Economy
Profit
Stability
Wealth
Core
Values
Shared
Drivers
Wellbeing
Social
Responsibility
Reciprocity
Meaningful Life
Sustainability
Livability
of the
Environment
Value for
Money
Happieness
Belonging
Eco-
Effectiveness
Eco-
Footprint
Soc
iety
Ecosy
stem
Organi
sation
Us
er
Experience
Doing Well
Doing good
Transformation
Value Proposition(s)
Perspectives
on Value
Levels of
Value
Sociology
Ecology
Psychology
Economy
Profit
Stability
Wealth
Core
Values
Shared
Drivers
Wellbeing
Social
Responsibility
Reciprocity
Meaningful Life
Sustainability
Livability
of the
Environment
Value for
Money
Happieness
Belonging
Eco-
Effectiveness
Eco-
Footprint
Soc
iety
Ecosy
stem
Organi
sation
Us
er
Value Proposition(s)
Experience
Doing Well
Doing good
Transformation
Perspectives
on Value
Levels of
Value
Sociology
Ecology
Psychology
Economy
Profit
Stability
Wealth
Core
Values
Shared
Drivers
Wellbeing
Social
Responsibility
Reciprocity
Meaningful Life
Sustainability
Livability
of the
Environment
Value for
Money
Happieness
Belonging
Eco-
Effectiveness
Eco-
Footprint
Soc
iety
Ecosy
stem
Organi
sation
Us
er
Value Proposition(s)
Experience
Doing Well
Doing good
Transformation
Design has to
be conceived as
…
design for,
design with,
and design by
… users and
other »interpreters«.
Then it
creates
…
value for,
value with,
and value from
… users and
other stakeholders.
34
Sounds logic?
It often seems it isn’t …
Innovation
35
Sounds logic?
It often seems it isn’t …
Participatory
Design
User-Centered
Design
Design + Emotion
Critical Design
Generative
Design Research
DESIGN-LED
RESEARCH-LED
EXPERT MINDSET
users” seen as subjects
(reactive informers)
“
PARTICIPATORY MINDSET
users” seen as partners
(active co-creators)
“
Human Factors
+ Ergonomics
Usability
Testing
Applied
Ethnography
Lead-User
Innovation
Contexual
Inquiry
Cultural
Probes
Generative
Tools
“Scandinavian”
Methods
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.
46
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.
47
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
Design-driven
strategic business
planning
48Jan Schmiedgen // Fidicinstr. 41 // 10965 Berlin // GERMANY // +49 173 3 83 15 26 // kontakt@schmiedgen.eu

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Design Thinking - Bootcamp

  • 1. Design Thinking Bootcamp (2-3 days) Selected slides for a typical professional training
  • 2. 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).
  • 3. Design Thinking Bootcamp: Day I Experience the basics of design thinking
  • 4. 1 The future is best found in the opportunities that go unnoticed in the present. Peter Drucker „“
  • 6. Everything that needs to be said has already been said. But, since no one was listening, everything must be said again. André Paul Guillaume Gide (French author and Nobel Prize literary) „ “ 7 It’s a way of designerly (entrepreneurial!) doing and thinking which can be seen as »innovator’s common sense« There is nothing new about “Design Thinking”
  • 7. The Basics »Design thinking« its origin, nature and use. IN PU T Image Credit: New Bauhaus Chicago; Stefanie Di Russo (ithinkidesign.wordpress.com), PhD/Researcher at Swinburne University, Melbourne, Australia
  • 8. 9 Design thinking in the media – a sketchy view Place - People - Process ‣ Heavy collaboration in multi-disciplinary teams ‣ Space as catalyst ‣ Culture of visualization and prototyping ‣ Radical user perspective ‣ Heavy use of sticky notes … Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html
  • 9. 9 Design thinking in the media – a sketchy view Place - People - Process ‣ 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
  • 10. 9 Design thinking in the media – a sketchy view Place - People - Process ‣ 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
  • 11. 9 Design thinking in the media – a sketchy view Place - People - Process ‣ 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
  • 12. design is to design the design of a design. What is »Design«? cited after John Heskett (former Chair Professor Design, Hong Kong Polytechnic University); adapted from Hardt, M. (2006). Design: The Term Design. Lecture presented at University of Lapland, Rovaniemi Finland. (www.michael-hardt.com/PDF/lectures/design-definition.pdf) a general concept or policy 1 an activity 2 a plan or intention 3 a finished outcome (system, service or product) 4 noun verb noun noun 10
  • 13. value creation + value capture Design Thinking: Why the sudden Interest? 11 doing the right thing problem finding doing the thing right problem solving Fundamental cultural differences …
  • 14. value creation + value capture Design Thinking = Strategic Thinking 12 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. doing the right thing problem finding doing the thing right problem solving
  • 15. value creation + value capture Design Thinking = Strategic Thinking 13 doing the right thing problem finding doing the thing right problem solving 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)
  • 16. value creation + value capture = advantage Value migration and the shift to a »value creation economy« Design Thinking = Strategic Thinking 14 doing the right thing problem finding doing the thing right problem solving
  • 17. Value migration and the shift to a »value creation economy« Design Thinking = Strategic Thinking 15 doing the right thing problem finding doing the thing right problem solving Design Thinking Lean Start-up Agile Execute: Classic Lean
  • 18. value creation + value capture = strategy Design Thinking = Strategic Thinking 17 doing the right thing problem finding doing the thing right problem solving
  • 19. Design Thinking = Strategic Thinking 17 doing the right thing problem finding doing the thing right problem solving
  • 20. Mystery Heuristic Algorithm Code Strategic Thinking and the »Knowledge Funnel« 01100111001 doing the right thing problem finding doing the thing right problem solving
  • 21. 19 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)
  • 22. 20Image Credit: DT Venn Diagram, Stanford d.School
  • 23. 20 Design is the expert discipline for relating and connecting floating fields. Wolfgang Jonas (1999) „“ Image Credit: DT Venn Diagram, Stanford d.School
  • 24. 21 People & Human Values Usability & Desirability Technology Feasibility Business Viability Design Thinking and Value Creation
  • 25. 21 People & Human Values Usability & Desirability Technology Feasibility Business Viability Design Thinking and Value Creation Emotional Innovation: User Interaction and Interface, Relationships, Marketing Functional Innovation: Organisational Behavior Marketing & Branding Process Innovation: Manufacturing
  • 26. 21 People & Human Values Usability & Desirability Technology Feasibility Business Viability Design Thinking and Value Creation Emotional Innovation: User Interaction and Interface, Relationships, Marketing Functional Innovation: Organisational Behavior Marketing & Branding Process Innovation: Manufacturing =VALUE INNOVATION EXPERIENCE INNOVATION
  • 27. 22Image Credit: © 2011-2012 General Electric Company MRI Scan Technology Adventure Frame Cost Avoidance Less sedations, more patients Design Thinking and Value Creation
  • 28. 22Image Credit: © 2011-2012 General Electric Company MRI Scan Technology Adventure Frame Cost Avoidance Less sedations, more patients Design Thinking and Value Creation VALUE INNOVATION
  • 29. The Solar Bottle Bulb has been installed to provide ~55 watts of light The Solar Bottle Bulb has been installed to provide ~55 watts of light JaipurKnee High Performance: Blends gait stability with a natural swinging motion Affordable: One tenth the cost of comparable polycentric knee joints 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 standard pyramid adapter system A Prosthetic Knee Joint for Extreme-Affordability: 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 from Biology: Mimics an anatomical knee’s motion 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 Embrace d.light Keep the Change GE MRI Adventure Series Mayo Clinics A Liter of Light JaipurKnee Hippo Roller
  • 30. 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« Paradigm Shifts, Market Disruptions and Competitive Advantages
  • 31. 25 Design-led Innovation Shared values and principles of a d.culture … IN PU T http://online.wsj.com/article/SB10001424127887324744104578475220275737136.html
  • 32. 26 inside » « outside Perceived Customer Value = Functional Benefits – Financial Cost 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? 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. 1: Have an Outside-in Mindset
  • 33. 26 inside » « outside Perceived Customer Value = Functional Benefits – Financial Cost 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? CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN What business design would create defensible profits? What customers do we want? What are their priorities? What do we need to execute that design? What could we offer? What ecosystem exists to meet those 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. 1: Have an Outside-in Mindset
  • 34. 27 1: Have an Outside-in Mindset Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided Tour Through The Wilds of Strategic Mangament. New York: The Free Press. The ten Schools after Mintzberg Strategy Formation as … Inherent in DT 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
  • 35. 27 1: Have an Outside-in Mindset Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided Tour Through The Wilds of Strategic Mangament. New York: The Free Press. The ten Schools after Mintzberg Strategy Formation as … Inherent in DT 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 EMERGENT STRATEGY THINKING
  • 36. 1: Combine Outside-in & Inside-out 28 Identify Business Develop Technology Create Concepts Fit them to Users Understand Users Create Concepts Build Business Develop Technology 1 2 3 3 2 1 Innovating with push (proposing) and pull (exploring) CONNECT adapted from Vijay Kumar: Business & Technology-driven Innovation vs. Design Thinking
  • 37. 2: Use Empathy for Users & Stakeholders 29 Desirability Feasibility Viability
  • 38. 2: Use Empathy for Users & Stakeholders 29 Desirability Feasibility Viability What can be done in terms of capabilities and technology? What can be financially viable? Start What is it, people desire? Solution
  • 39. 30 3: Embrace Diversity and Multi-disciplinarity
  • 40. 3: Embrace Diversity and Multi-disciplinarity after Bill Moggridge, Interaction Design Professions Physical Design Digital Design Human&Subjective Technical&Objective GRAPHIC DESIGN HUMAN SCIENCES INDUSTRIAL DESIGN INTERACTION DESIGN WEB DESIGN H.C.I. PHYSICAL SCIENCES MECHANICAL ENGINEERING PRODUCTION ENGINEERING HARDWARE ENGINEERING SOFTWARE ENGINEERING COMPUTER SCIENCES 31
  • 41. 4: Think holistically and systemic 32
  • 42. 3 5: Generate many, many, many ... new Ideas 33
  • 43. 6: Find and Iterate Alternative Solutions 34 Iterations Alternative Solutions
  • 44. 35 6: Find and Iterate Alternative Solutions = Market Definition Market Business Industry Z Industry Y Industry X Customer Groups Alternative Solutions Customer Functions after Abell, D. F. (1980). Defining the Business - The Starting Point of Strategic Planning. NJ: Englewood Cliffs.
  • 45. Planning & Development Procurement & Production Test, Delivery & Launch 7: Fail early, Fail often – But: Fail smart! 36 COSTSOFERRORS PROJECT PROGRESS Test & Iterate: Num ber of Errors Cost per Failure Danger: Post-decision dissonance! »Sunk cost fallacy« Learn here! Too late!   
  • 46. Return Time 7: Fail early, Fail often: Design’s Impact on Innovation ROI 37 -€ +€ Investment/Return Image Credit: Charles Owen (1998) Investment
  • 47. 38 8: Make conscious Use of Space LaunchLabs, Berlin (www.launchlabs.de)
  • 48. HUMAN CENTERED BIAS TOWARDS ACTION SHOW DON’T TELL CRAFT CLARITY RADICAL COLLABORATION CULTURE OF PROTOTYPING & EXPERIMENTATION MINDFUL OF PROCESS 39 The famous D.Mindset Image Credit: D.Mindsets, d.School Stanford (dschool.stanford.edu)
  • 49. meth·od·ol·o·gynoun /ˌmeTH#ˈdäl#jē/  methodologies, pluralThe system of principles, practices, an procedures applied to any specific branch knowledge 41 Process, Toolset, Method or what? Annoying discussions around a methodology. IN PU T
  • 50. Convergence-Divergence ID.IIT: Analysis-Synthesis Engine Service Design (UK) »Design Chaos« Spirit of Creation (UK) St. Gallen d.school Potsdam IDEO (Educators Toolkit) d.school Stanford Beckman & Barry Bill Moggridge Stanford’s d.Modes Jeanne Liedtka and Tim Ogilvie Stanford’s Necktie Flare ID.IIT: Vijay Kumar 42 ! Diamond 1: Direction setting Diamond 2: Service design Diamond 3: Service production Create SelectInitiateInitiate Create Select Define Define Sustain Vision Document Service Blueprint Create SelectInitiate Define Assimilating Converging Diverging Accommodating Active Experimentation Abstract Conceptualization Concrete Experience Reflective Observation Imperatives Problem Finding Solution Finding Problem Selecting Solution Selecting SolutionsObservations Frameworks etc. No Need to fear the »Model Mayhem«! ABSTRACT CONCRETE DISCOVERY INTERPRETATION IDEATION EXPERIMENTATION EVOLUTION
  • 51. ANALYSIS-SYNTHESIS CONVERGENCE-DIVERGENCE RE-ENTRY POINT CONCRETE-ABSTRACT Most Common Generic Models of Creative Thinking 43 S2 S4 S5 S6S3S1
  • 52. 44 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND PROBLEM SPACE EXPLORATION SOLUTION SPACE EXPLORATION
  • 53. SOLUTION SPACE EXPLORATION OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND Empathize Explore ExecuteRe-Frame Talk to Experts Research Experience Immerse Observe Engage Share Synthesize Point of View Brainstorm Visualize Prototype Insight Big Idea Sticky Takeaway PROBLEM SPACE EXPLORATION The most popular Design Thinking Process Representation
  • 54. OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND Divergence-Convergence Model “solving” “solving”“seeking”“seeking” PROBLEM SPACE EXPLORATION SOLUTION SPACE EXPLORATION Initial understanding of problem increasing complexity increasing certainty Problem definition: “reframing”
  • 55. Analysis-Synthesis Bridge Model 47after Dubberly, Evenson & Robinson (2008) Analysis (think) Concrete Abstract Synthesis (make) What »is« Model of what »is« Model of what »could be« What »could be« distilledto suggest manifestas Existing – Implicit (Current) Preferred – Explicit (Future) Frameworks Imperatives SolutionsObservations Problem Space Solution Space
  • 56. Analysis-Synthesis Bridge Model 48after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations OBSERVE IDEATE PROTOTYPE TEST POINT OF VIEW
  • 57. Analysis-Synthesis Bridge Model 48after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations OBSERVE IDEATE PROTOTYPE TEST POINT OF VIEW Solution Selecting Problem Selecting Solution Finding Problem Finding
  • 58. Analysis-Synthesis Bridge Model 49after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations
  • 59. Analysis-Synthesis Bridge Model 49after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations
  • 60. Analysis-Synthesis Bridge Model 49after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations
  • 61. Analysis-Synthesis Bridge Model 50after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations Express Test Cycle Academic Isolation slavishly user-centered cloud-cuckoo-land
  • 62. 51 Design as … Example Problem Framing Design redefines the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design finds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. 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)
  • 63. 51 Design as … Example Problem Framing Design redefines the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design finds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. 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)
  • 64. 51 Design as … Example Problem Framing Design redefines the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design finds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. 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)
  • 65. 51 Design as … Example Problem Framing Design redefines the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design finds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. 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)
  • 66. 51 Design as … Example Problem Framing Design redefines the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design finds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. 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)
  • 67. 51 Design as … Example Problem Framing Design redefines the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design finds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. 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) Competitive Advantage Decades Years Quarters Months z
  • 68. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52
  • 69. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52
  • 70. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52
  • 71. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52 the clay street project
  • 72. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52 the clay street project
  • 73. 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 Pyramid of Design Thinking Practice 53 The Pyramid of DT practice: adapted from Stefanie Di Russo (PhD), Swinburne University, Australia LOW HIGH Level of Complexity
  • 74. Customer Discovery + Problem Discovery + Working Culture + Structured Unstructured Process + Sanity and Reason = Design Thinking 54
  • 76. Image Credit:Tom Fishburne (http://tomfishburne.com)
  • 77. 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
  • 78. 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)
  • 79. 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)
  • 80. 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)
  • 81. 6 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) Jobs-to-be-done are complex constructs … Use, Usability and Meaning
  • 82. 6 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) Jobs-to-be-done are complex constructs … Use, Usability and Meaning
  • 83. 7 Jobs-to-be-done are complex constructs … Use, Usability and Meaning 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)
  • 84. 8 Jobs-to-be-done are complex constructs … 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)
  • 85. 8 Jobs-to-be-done are complex constructs … 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)
  • 86. Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc 5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu operation. The shell is sometimes cracked with a small stone and the hulls picked off but often they are moved by the teeth of the women. This woman was probably seventy-five or -eight years of age, yet she was removing the shells with her teeth which were absolutely perfect. duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco) 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 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 of stones have been heating in a nearby fire. Water is placed in one of the baskets and heated se stones until moderately hot when the water is poured through these fir boughs onto the or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is ughly leached the meal is placed in another basket and it is filled with water and boiled by 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. 9 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) Jobs-to-be-done are complex constructs … Use, Usability and Meaning Use Usability
  • 87. Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc 5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu operation. The shell is sometimes cracked with a small stone and the hulls picked off but often they are moved by the teeth of the women. This woman was probably seventy-five or -eight years of age, yet she was removing the shells with her teeth which were absolutely perfect. duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco) 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 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 of stones have been heating in a nearby fire. Water is placed in one of the baskets and heated se stones until moderately hot when the water is poured through these fir boughs onto the or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is ughly leached the meal is placed in another basket and it is filled with water and boiled by 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. 10 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) Jobs-to-be-done are complex constructs … Use, Usability and Meaning Use Usability Meaning
  • 88. Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc 5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu operation. The shell is sometimes cracked with a small stone and the hulls picked off but often they are moved by the teeth of the women. This woman was probably seventy-five or -eight years of age, yet she was removing the shells with her teeth which were absolutely perfect. duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco) 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 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 of stones have been heating in a nearby fire. Water is placed in one of the baskets and heated se stones until moderately hot when the water is poured through these fir boughs onto the or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is ughly leached the meal is placed in another basket and it is filled with water and boiled by 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. 10 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) Jobs-to-be-done are complex constructs … Use, Usability and Meaning Use Usability Meaning NEED
  • 89. 11 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND Expertise Empathy Explore ExecuteRe-Frame UNDERSTAND OBSERVE
  • 90. Empathy: Immerse, Observe, Engage 12 See the world through someone else’s eyes Walk in other people’s shoes Immerse yourself into their experiences Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski
  • 91. Empathy: Methods Triangulation 13 THE RIGHT BALANCE? What people experience. TRY: Immersion Participatory Design What people do. LOOK: Observations Ethnography What people say they do. ASK: Engagement Contextual Interviewing
  • 92. MARKET RESEARCH INSIGHTS RESEARCH The Dispute over Methods 14 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 100 People 10 Truths 10 People 100 Insights
  • 93. 16 Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski Experience what your user might experience … Immerse. Observe. Engage.
  • 94. 17 Experience what your user might experience … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin
  • 95. 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
  • 96. 22 Be a fly on the wall: The art of unobtrusive research … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin
  • 97. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) MESSAGES
  • 98. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) Religion: Christian MESSAGES
  • 99. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) Religion: Christian Workaround: Beer Cover MESSAGES
  • 100. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) Religion: Christian Workaround: Beer Cover Potential »Distribution Partner« MESSAGES
  • 101. 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. 23 People say one thing but yet do another Immerse. Observe. Engage. Image Credit: http://images.businessweek.com/ss/06/05/ethnography/image/01_intro.jpg
  • 102. Activity Insights Need Statement Interview People Objects Environments Messages Services User Experience Physical Cognitive Social Cultural Time 24 Advanced ways of structuring your field work Observation Techniques Activity Insights Need Statement Interview People Objects Environments Messages Services User Experience Physical Cognitive Social Cultural Emotional Time POEMS Image Credit - Cultural Probes: Final student project of Helle Rohde Andersen (http://ciid.dk/education/portfolio/idp11/final-projects/seam-city/) Image Credit - WHW, AEIOU: d.school Stanford / Bootcamp Bootleg 2010 Cultural Probes What-How-Why? | | | | 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. 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: How is the person you’re observing doing what they are doing? Does it require effort? Do they appear rushed? Pained? Does the activity or situation appear to be impacting the user’s state of being either positively or negatively? Again, use as many descriptive phrases as possible here. 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 it? This step usually requires that you make informed guesses regarding motivation and emotions. Step out on a limb in order to project meaning into the situation that you have been observing. This step will reveal assumptions that you should test with users, and often uncovers unexpected realizations about a particular situation. What? | How? | Why? METHOD
  • 103. mework helped researchers do rapid ethnography and work within research parameters pertaining to the topic. Th found plastic into large jute bags and carry it on foot to a plastic wholesaler, w stifies the activity. POEMS Field Notes 27 Designing for the Base of the P nd work within research paramarg Image Credit: Designing for the Base of the Pyramid, Patrick Whitney, Anjali Kelkar (2004)
  • 104. 29 Enlightening conversations … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin
  • 106. 31 Enlightening conversations … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin | http://www.gretchenchern.com/wp-content/uploads/2011/06/contextual_Affinity.jpg
  • 107. The Anatomy of an Interview 32after Michael Barry (d.school Stanford, Point Forward) and Aristotle dramatic structure exposition risingaction climax fallingaction resolution Intro Kick-off Build Rapport Grand Tour Reflection Wrap-up Intro Yourself Intro Project Evoke Stories Explore Emotions Question Statements
  • 108. 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) 34 Cast aside your Biases, Listen and Observe 01 Image Credit & Source: d.school Stanford
  • 109. 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. 35 Listen to People's Personal Stories 02 Image Credit & Source: d.school Stanford
  • 110. Opportunities for innovation lie within the disconnect between action and words. 36 Contradictions between what People say and do 03 Image Credit & Source: d.school Stanford
  • 111. 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. 37 Watch for »Work Arounds« 04 Image Credit & Source: d.school Stanford
  • 112. 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. 39 Distinguish between Needs and Solutions 05 Image Credit & Source: d.school Stanford
  • 113. 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. 40 Look beyond the Obvious 06 Image Credit & Source: d.school Stanford
  • 115. Interview Preparation ‣ Brainstorm questions ‣ Discover themes ‣ Refine and memorize questions ‣ Use prompts 41
  • 116. Interview Preparation ‣ Brainstorm questions ‣ Discover themes ‣ Refine and memorize questions ‣ Use prompts 41
  • 117. Design Thinking Bootcamp: Day II Your work has only just begun …
  • 118. 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 Do we actually solve the problem we think we do? Problem Reframing: Point of View
  • 119. 3 Define Blind men and elephant? IN PU T
  • 120. 4 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND POINT OF VIEW
  • 121. The Knowledge Funnel 5 Mystery Heuristic Algorithm Code 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. 01100111001
  • 122. Frame Creation: Defining the »Right Problem« Archaeology Paradox Stakeholders Problem Arena Themes Frames Futures Transformations Connections 6 after Kees Dorst, 2012 (d.confestival Potsdam)
  • 123. 7 Workspace @ d.school Potsdam Making Sense of the »mess of data«. Problem Reframing = Synthesis
  • 124. 8 Making Sense of the »mess of data«. Problem Reframing: Tips & Tricks
  • 125. 9 Composite characters – the shortcut to empathy. Persona Construction Image Credit: Cooper, A., & Reimann, R. M. (2003). About Face 2.0: The Essentials of Interaction Design (2nd ed.). Indianapolis: Wiley & Sons.
  • 126. 10 Framing and re-framing of the problem. Point of View User + Need + Insight problem statement surprising anomaly
  • 127. 11Image Credit: © 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html) 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?”
  • 128. 12Image Credit: © Embrace (www.embraceglobal.org) 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?”
  • 129. 13Image Credit: © Lynx Team @ MIT & RSID’s »Design that matters« course (http://designthatmatters.org/news/dtm-blog/2011/03/dtm_leads_first.php) 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?”
  • 130. 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?”
  • 131. 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?”
  • 132. 1 IN PU T 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/)
  • 133. Why Prototype? Gain empathy Explore Inspire Test 2 → get deeper understanding → build to think → catalyse inspiration → learn and refine solutions
  • 134. 3 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND PROTOTYPE
  • 135. 4 Prototyped artifacts may come in many forms ... Prototyping Image Credit: © Klara Lindner for Mobisol GmbH Berlin
  • 136. 5 Image Credit: Martin Jordan (http://www.service-design-berlin.de/) Prototyped artifacts may come in many forms ... Prototyping
  • 137. 6 Prototyped artifacts may come in many forms ... Prototyping
  • 138. 7 Prototyped artifacts may come in many forms ... Prototyping
  • 139. 8 Image Credit: Elias Barrasch (http://www.blog.eliasbarrasch.de/) Prototyped artifacts may come in many forms ... Prototyping
  • 140. HUMAN CENTERED BIAS TOWARDS ACTION SHOW DON’T TELL CRAFT CLARITY RADICAL COLLABORATION CULTURE OF PROTOTYPING & EXPERIMENTATION MINDFUL OF PROCESS 9
  • 141. ProtoTypes Which aspects do you want to represent/test? Choose testing variable ‣ Looks-like ‣ Works-like ‣ Interacts-like ‣ Feels-like ‣ etc. 10
  • 142. High »Mock-up« of the idea: representation as close as possible to the idea Middle Representation of aspects of the idea Low Conceptual representation Restricted Controlled Environment General Any user, any environment Partial Final user or environment Total Final user + environment Prototype Fidelity and Testing Context 11Image Credit: Embrace FIDELITY CONTEXTLEVEL “Make sure you are building the right »it« before you build it right”
  • 143. High »Mock-up« of the idea: representation as close as possible to the idea Middle Representation of aspects of the idea Low Conceptual representation Restricted Controlled Environment General Any user, any environment Partial Final user or environment Total Final user + environment Prototype Fidelity and Testing Context 11Image Credit: Embrace FIDELITY CONTEXTLEVEL “Make sure you are building the right »it« before you build it right”
  • 144. 12 Google Glass’ Lo-fi Prototyping Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #1 Experience: Augmentation
  • 145. 12 Google Glass’ Lo-fi Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #1 Experience: Augmentation
  • 146. 12 Google Glass’ Lo-fi Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #2 Options Exploring: Gesture Control#1 Experience: Augmentation
  • 147. 12 Google Glass’ Lo-fi Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #2 Options Exploring: Gesture Control#1 Experience: Augmentation 45 MIN
  • 148. 12 Google Glass’ Lo-fi Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #3 Try & Iterate:Shape, Size, Weight #2 Options Exploring: Gesture Control#1 Experience: Augmentation 45 MIN
  • 149. ½ HOUR 12 Google Glass’ Lo-fi Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #3 Try & Iterate:Shape, Size, Weight #2 Options Exploring: Gesture Control#1 Experience: Augmentation 45 MIN
  • 150. You See: It’s no Rocket Science! 13
  • 151. 1 IN PU T Iterate! Test! Ready for the ride? Image Credit: United States Library of Congress, Prints & Photographs Division, Photochrom Collection, [Circus Rings, Luna Park, Coney Island]
  • 152. HUMAN CENTERED BIAS TOWARDS ACTION SHOW DON’T TELL CRAFT CLARITY RADICAL COLLABORATION CULTURE OF PROTOTYPING & EXPERIMENTATION MINDFUL OF PROCESS 2
  • 154. How to Test … 1. Let your users experience the prototype 2. Observe their experience 3. Engage them 5
  • 156. 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
  • 157. 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
  • 158. 2000‘s Innovation & Competitiveness 1990‘s Brand building 1980‘s Design Management 1970‘s The rise of Ergonomics 1960‘s Involving Industry 1950‘s Promoting the Nation „global competition and renewal“ „the China- phenomenon“ „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!“ design as a innovation driver design for creating experiences for the customer design as a co-ordinator design for user understanding design as part of a team together with mechanics and marketing the designer as a creator 6 Design Practice and Design Management Perspectives adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki. strategyvision roadmaps product definition entire product development process product aesthetics „styling“ typical role for the designer proximity to the market typical statement on design
  • 159. 2000‘s Innovation & Competitiveness 1990‘s Brand building 1980‘s Design Management 1970‘s The rise of Ergonomics 1960‘s Involving Industry 1950‘s Promoting the Nation „global competition and renewal“ „the China- phenomenon“ „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!“ design as a innovation driver design for creating experiences for the customer design as a co-ordinator design for user understanding design as part of a team together with mechanics and marketing the designer as a creator 6 Design Practice and Design Management Perspectives adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki. strategyvision roadmaps product definition entire product development process product aesthetics „styling“ typical role for the designer proximity to the market typical statement on design Shared Value?
  • 160. 2000‘s Innovation & Competitiveness 1990‘s Brand building 1980‘s Design Management 1970‘s The rise of Ergonomics 1960‘s Involving Industry 1950‘s Promoting the Nation „global competition and renewal“ „the China- phenomenon“ „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!“ design as a innovation driver design for creating experiences for the customer design as a co-ordinator design for user understanding design as part of a team together with mechanics and marketing the designer as a creator 6 Design Practice and Design Management Perspectives adapted from Valtonen, A. (2007). Redefining Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki. strategyvision roadmaps product definition entire product development process product aesthetics „styling“ typical role for the designer proximity to the market typical statement on design Shared Value? 2010’s
  • 161. 7 Who WhatHow Who is our customer and what does he value? What value do we actually deliver, a.k.a. which busi- ness are we in? How to create, deliver and capture parts of that value? Know what solutions to build. Products & services, new meanings, new experiences Know for whom to build. Market Disclosing, User(s) segments, Individual needs Know how to profitably implement this. Business models, Value capture mechanisms Examples: Observation and integration of, or adaption to current user practices (e.g. repurposes or hacks) Examples: Design discourse, design experiments, prototypes Examples: Existing tools and approaches for constructing new user/ experience journeys Core principles, practices, processes and tools of higher order design (e.g. heavy collaboration and co-creation, permanent interaction, validity-seeking systems thinking, etc.) Innovate Value by Design adapted from Sniukas, M. (2007). Reshaping Strategy: The Content, Process, and Context of Strategic Innovation.
  • 162. 8 Design in Business -or- Business Design Why a HCD posture is the new competitive advantage IN PU T
  • 163. Progression of Economic Value 10 Differentiated Undifferentiated CompetitivePosition Pricing NeedsofCustomers Relevant to Irrelevant to Market Premium Extract Commodities Make Goods Stage Experiences Guide Transformations Customization Customization Commoditization Commoditization Commoditization
  • 164. 11 Differentiated Undifferentiated CompetitivePosition Pricing NeedsofCustomers Relevant to Irrelevant to Market Premium Extract Commodities Make Goods Stage Experiences Guide Transformations Customization Customization Commoditization Commoditization Commoditization Stages of Experience EXPERIENCE ? TRANSFORMATION PRODUCT SERVICE COMMODITY 1¢-2¢ Cup 5¢-25¢ Cup €1.00-€2.50 Cup €3.00-€4.50 Cup What’s next?
  • 165. 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. 12Image Credit: Joe Pine & Jim Gilmore (Source: http://www.strategichorizons.com) Pine & Gilmore (1999, p.194) „ “
  • 166. 13 Perceived Customer Value = Functional Benefits – Financial Cost inside » « outside How do you strategize? 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? 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.
  • 167. 13 Perceived Customer Value = Functional Benefits – Financial Cost inside » « outside How do you strategize? 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? CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN What business design would create defensible profits? What customers do we want? What are their priorities? What do we need to execute that design? What could we offer? What ecosystem exists to meet those 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.
  • 168. 14BOTTOM-UP TOP-DOWN INSIDE-OUT OUTSIDE-IN Value Creation & Innovation Opportunies Human-centric Innovation Business- & Technology-driven Innovation (Latent) Needs Discovery Alternative Practices & Solutions Business Opportunities Business Opportunities (Organisational, Technological) Internal Change Strategy & Brand Environmental Factors Market Changes Competitors Moves Staff Abilities Staff Experience Dispersed Knowledge Users’ Value CreationProviders Value Facilitation Do we talk about the same thing here? How do you strategize? Internal Change External Change
  • 169. Reliability Bias? 15 Business People Designer 100% Reliability 100% Validity Reliability vs. Validity a fundamental predilection gap 50/50 Mix Martin, R. L. (2009). Design of Business: Why Design Thinking Is the Next Competitive Advantage. Mcgraw-Hill Professional.
  • 170. The (Danish) Design Ladder 16 Non-design Design is a negligible part of the product development process and usually performed by other professionals than the designer. 1st step 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. 2nd step Design as process Design is a method integrated early into the development process. The production outcomes requires contributions from several specialists. 3rd step Design as innovation The designer works closely alongside to the company’s management on complete or partial renewal of the total business concept. 4th step 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.
  • 171. Correlation of Design Activities and Average Growth in Turnover 17 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. 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 9 10
  • 172. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets
  • 173. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets
  • 174. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets
  • 175. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets
  • 176. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Continuous Incremental
  • 177. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Continuous Incremental Sustaining Evolutionary
  • 178. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Continuous Incremental Sustaining Evolutionary
  • 179. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary
  • 180. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary 10%
  • 181. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary 10% 20%
  • 182. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary 10% 20% 70%
  • 183. Innovation ROI: »Black Hole« vs. Options-oriented Investment 19 -€ +€ CumulativeCashFlow 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. Time Downside risk unlimited
  • 184. Innovation ROI: »Black Hole« vs. Options-oriented Investment 20 -€ +€ CumulativeCashFlow 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. Time Downside risk contained at any given time
  • 185. Innovation ROI: »Black Hole« vs. Options-oriented Investment 20 -€ +€ CumulativeCashFlow 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. Time Downside risk contained at any given time
  • 186. Innovation ROI: »Black Hole« vs. Options-oriented Investment 20 -€ +€ CumulativeCashFlow 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. Time Downside risk contained at any given time
  • 187. Business Model Management 21 Company Can Company Will Company Should COMPANY WILL: - Business idea - Leadership preferences - Leadership vision - Goal - Declaration of intent COMPANY SHOULD: - Competitive situation - Client side - Supplier side - Distribution situation - Entourage factors COMPANY CAN: - Economy - Employees - Production facility - Flexibility - Core competencies Area of position change Primary area of effort Danger zone Area of competency development 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.
  • 188. Blue Ocean: Four Actions Framework 22 ELIMINATE Which of the factors that the industry takes for granted should be eliminated? CREATE Which factors should be created that the industry has never offered? RAISE Which factors should be raised well above the industry‘s standard? REDUCE Which factors should be reduced well below the industry‘s standard? A NEW VALUE CURVE 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
  • 190. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS eliminate reduce create raise unchangedNintendo Wii (in 2007)
  • 191. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics new proprietary technology state-of-the-art chip development console subsidies eliminate reduce create raise unchangedNintendo Wii (in 2007)
  • 192. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics new proprietary technology state-of-the-art chip development console subsidies royalties from game developers game developers retail distribution game developers eliminate reduce create raise unchangedNintendo Wii (in 2007)
  • 193. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers game developers retail distribution game developers eliminate reduce create raise unchangedNintendo Wii (in 2007)
  • 194. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers casual gamers game developers families girls retail distribution game developers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family
  • 195. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers hardwaresales profit casual gamers game developers families girls retail distribution game developers standard component hardware manufacturers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming retail store involvement physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family
  • 196. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers hardwaresales profit casual gamers game developers families girls retail distribution game developers standard component hardware manufacturers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming retail store involvement physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family Feasibility Viability Desirability
  • 197. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers hardwaresales profit casual gamers game developers families girls retail distribution game developers standard component hardware manufacturers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming retail store involvement physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family Feasibility Viability Desirability Best Sustainable Equilibrium
  • 198. 25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) Key Partners Key Activities Value Proposition Relationships Channels Revenue Streams Key Resources Cost Structure Customer Segments
  • 199. 25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) Key Partners Key Activities Value Proposition Relationships Channels Revenue Streams Key Resources Cost Structure Customer Segments Eliminate/Reduce Costs Create/Raise Value
  • 200. 25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) Key Partners Key Activities Value Proposition Relationships Channels Revenue Streams Key Resources Cost Structure Customer Segments Eliminate/Reduce Costs Create/Raise Value Best Sustainable Equilibrium max. value capture for the company max. valuefor the user
  • 201. 28 FIRM Business Model A Business Model B Business Model C Business Model D BUSINESS MODEL OPTIONS Strategy: plan of which business model to adopt Tactics: competitive choices enabled by each business model Strategy stage Tactics stage Tactical set C Tactical set D Tactical set B Tactical set A Business Model »vs.« Strategy: Business Model Portfolio Casadesus-Masanell, R., & Ricart, J. E. (2010). From Strategy to Business Models and onto Tactics. Long Range Planning, 43(2-3), 195–215.
  • 202. Core Value Proposition Complementary Offerings Supplying and Enabling Network Other Stakeholders ®® TM Apple’s Business Ecosystem 31 Higher Margins via Apple Price Premium Lowest Production Costs Goods & Services Money & Credits Information Intangible Value High Volume and Planning Certainty Manufacturing Knowledge Reputation ??? IP royalties Seamless User Experience Enriched User Experience App Purchases Comission Sales Platform Apple Platform New Business Ideas Higher Margins : Apple Price Premium Broad Service Station Covering Technical and Sales Training Digital Sales Channel with DRM and wide Spread Media Delivery ??? IP royalties / Commission Infrastructure Management Service Contract Sponsoring / Discounts Apple on Campus Bulk Purchases Reputation and Awareness Personal Data Price Premium (Hardware, Media and App Sales)
  • 203. Perspectives on Value Levels of Value Sociology Ecology Psychology Economy Profit Stability Wealth Core Values Shared Drivers Wellbeing Social Responsibility Reciprocity Meaningful Life Sustainability Livability of the Environment Value for Money Happieness Belonging Eco- Effectiveness Eco- Footprint Soc iety Ecosy stem Organi sation Us er Experience Doing Well Doing good Transformation Value Proposition(s)
  • 204. Perspectives on Value Levels of Value Sociology Ecology Psychology Economy Profit Stability Wealth Core Values Shared Drivers Wellbeing Social Responsibility Reciprocity Meaningful Life Sustainability Livability of the Environment Value for Money Happieness Belonging Eco- Effectiveness Eco- Footprint Soc iety Ecosy stem Organi sation Us er Value Proposition(s) Experience Doing Well Doing good Transformation
  • 205. Perspectives on Value Levels of Value Sociology Ecology Psychology Economy Profit Stability Wealth Core Values Shared Drivers Wellbeing Social Responsibility Reciprocity Meaningful Life Sustainability Livability of the Environment Value for Money Happieness Belonging Eco- Effectiveness Eco- Footprint Soc iety Ecosy stem Organi sation Us er Value Proposition(s) Experience Doing Well Doing good Transformation
  • 206. Design has to be conceived as … design for, design with, and design by … users and other »interpreters«. Then it creates … value for, value with, and value from … users and other stakeholders. 34 Sounds logic? It often seems it isn’t … Innovation
  • 207. 35 Sounds logic? It often seems it isn’t … Participatory Design User-Centered Design Design + Emotion Critical Design Generative Design Research DESIGN-LED RESEARCH-LED EXPERT MINDSET users” seen as subjects (reactive informers) “ PARTICIPATORY MINDSET users” seen as partners (active co-creators) “ Human Factors + Ergonomics Usability Testing Applied Ethnography Lead-User Innovation Contexual Inquiry Cultural Probes Generative Tools “Scandinavian” Methods 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.
  • 208. 46 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.
  • 209. 47 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
  • 210. Design-driven strategic business planning 48Jan Schmiedgen // Fidicinstr. 41 // 10965 Berlin // GERMANY // +49 173 3 83 15 26 // kontakt@schmiedgen.eu