Entrepreneurship by Design: The entrepreneur, the designer and the ideal startup (presentation)

©JulienKERLIDOU|Entrepreneurshipbydesign:Theentrepreneur,thedesignerandtheidealstartup|MBAManagementbyDesignStrate/PSB,May2018
ENTREPRENEURSHIP BY DESIGN
The Entrepreneur | The ideal Startup | The Designer
by Julien KERLIDOU
MBA Management by Design. May 2018.

About
me
Large company
PSA PEUGEOT-CITROËN-DS
Head of product (208, HMI/Cockpit)
Startup
SMART IMPULSE
Product, Design & UX Director
Tech
ENGINEER
Arts & Métiers
Business
MBA
IAE Paris
People
Mgt by Design
Strate - PSB
Entrepreneurial mindset
Product marketing
Consulting

World
is changing

World
is changing
▪ Accelerated mutations (global
competition, digital revolution,
crises, work, geopol., prod/cons.,
co-llaboration, environment,
sense, experience …)
▪ VUCA world (Volatile, Uncertain,
Complex, Ambiguous)
▪ Innovate or die: Injunction to
innovate / find new models +
large company’s difficulties to
drive change
▪ Requires new skills
STATUS
PROBLEMATIC
VUCA world
Sources: Benett et al (2014), US Army War College (1990s), Diana (2017)

World
is changing
▪ Emergence of 2 new figures in
the New Economy (heroes of
modern times?):
✓ the entrepreneur
✓ the designer
STATUS
PROBLEMATIC
Sources: Harvard Business Review

World
is changing
▪ Surprisingly, no link between the
entrepreneur and the designer …
▪ Problematic: totally different?
Common ground? Specificities?
▪ Research method:
✓ state-of-the-art of the research
litterature on 2 fields
✓ Common ground/specificities
✓ Use cases startup x design
✓ Own experience as hybrid profile
between entrepreneurship and
design in a startup
ENTREPRENEUR DESIGNER
The The
PART 1 PART 2
Common ground
Specificities
Complementarities
General conclusion
World is changing
Research
litterature
Research
litterature
Designer x Entrepreneur
> Common ground, specificities <
> Design in startup/tech <
> The ideal startup <
> Need for hybrid profiles <
Smart Impulse experience
> Design x entrepreneurship <
STATUS
PROBLEMATIC

The
Entrepreneur

The
Entrepreneur
▪ Recent field (18th > 20th),
neglected for a long while
▪ First opposed to the dominant
neoclassical model
▪ Self-regulation, invisible hand,
economies of scales: no place for
entrepreneurial initiative
▪ Central place in economy with
Schumpeter (1930) / innovation
▪ Research took off in the 80s,
now firmly established
▪ Widely integrated in engineering /
business programs
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
20th century
Neoclassical theory and domination of the large companies model
Mass production
and consumption
Theory of economies
of scale
Market self-regulation
(supply and demand,
the “invisble hand”)
Company self-regulation
(“automatic” profit
maximization)
Role of the
entrepreneur ?
Role of
SMEs ?
Source: Janssen & Surlemont (2016), Schmitt et al (2016)

The
Entrepreneur
▪ SME: < 250 people, < 50 M€ Turnover
▪ Startup: innovative, high growth /
high risk, important funding need
▪ « We now live in an entrepreneurial
economy »: 99% of companies, 85%
of new jobs, backbone of UE’s eco
▪ Create value, foster innovation,
competitiveness, economic growth
(GDP), employment
▪ Promoted to face new economy’s
challenges
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
99SMEs
1 large
company
15% 85% of new jobs
Source: OCDE (2017), Fridenson, Ries (2011), Audretsch & Thurik (2001)

The
Entrepreneur
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
▪ Complex definition: holistic vision +
multidisciplinary nature
▪ 4 main concepts: opportunity,
innovation, resources, value creation
▪ The entrepreneur “is an individual
who succeeds in identifying an
opportunity in his environment and
who manages to gather the
necessary resources to exploit it in
order to create value”.
▪ No typical profile (school of traits) >
State-of-mind + dynamic of action
▪ Entrepreneur characterized by
innovation, growth, profit, vision ( ≠
from owner-manager/corporate manager)
ENTREPRENEUR
(central role)
Necessarily limited.
Financial, human (skills),
material or immaterial.
OPPORTUNITY Identifies or creates
Evaluates then exploits
INPUT
VALUE
CREATION
The entrepreneur, through a different
perception of reality, is the first to
become aware of changes in the
environment, as well as to identify and
exploit them as opportunities.
Economic, social, personal, …
Utility for all stakeholders : the
entrepreneur, employees, customers,
shareholders, society as a whole
(social and economic progress)
Delivers new solutions
(“creative destruction”)
RESOURCES
INNOVATION
New products, markets,
business models, processes,
supply chain, organization ...
OUTPUT
ORGANIZATION / PROJECT
Assembles / mobilizes
Leads, leverages and executes
(Organization and management)
Creates new combinations
Meets a need and leads change
(Strategy and innovation)
To exploit an
opportunity, the
entrepreneur must
organize and
mobilize resources
To mobilize
resources, the
organization must
create value for the
stakeholders
To innovate, we
must search for
and exploit
business
opportunities.
To create value
and ensure the
organization’s
development, we
must innovate.
Source: Verstraete & Fayolle (2005), Janssen & Surlemont (2016), Frederick et al (2007), Wickham (2006)

The
Entrepreneur
▪ Iterative process
▪ Methods: Lean
Startup, Design
thinking, Business
Model Canvas,
Agile, …
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
DISCOVERY /
EXPLORATION
PRODUCT-MARKET FIT
▪Innovation at the heart of entrepreneurship
▪Innovate to create value, differentiation, business perf
▪From techno-centric to user-centric and global
▪Iterative process (try & learn, MVP, GOOB, lean startup)
▪Leverage resources, Creates/manages an organization
▪Financial: founding, investment, risks, business plan
▪Human: complementary skills, recruitment, loyalty
▪Material (offices, …), immaterial (brand, IP, …)
▪Business model canvas
▪Customer development strategy (acquisition/retention)
▪Art of execution and delivery (operations)
▪Development: growth, international., transfer, failure
▪Permanent scan of the environment, “info processor”
▪Transform info into action, agility, risk / uncertainty
▪Opportunity identification, evaluation, exploitation
▪“Finding the problem is the hard part” (Instagram)
Opportunity
Innovation
Resources
Value
creation
EXPLOITATION
GOALS-RESOURCES FIT
EXECUTION
RESOURCES-VALUE FIT
Source: Janssen & al (2016) + see full bibliography

The
Entrepreneur
▪ New paradigm for entrepreneurship
(Sarasvathy, 2011, mentor H. Simon)
▪ Cognition: research on how the
entrepreneur made sense of the world
around her to imagine, identify and
design products, services, …
▪ Effectuation (experts entrepreneurs,
exploration): starts with available
means, leverage contigencies /
surprises, set affordable losses, build
co-creation partnerships, gain early
customers, control vs prediction
▪ Entrepreneurship: rational process,
accessible to all, no visionaries.
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
Source: Schmitt (), Sarasvathy (2001), effectuation.org

The
Designer

The
Designer
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
▪ Recent field (19th-20th), neglected
for a while (and still poorly known)
▪ But design is everywhere
▪ Multidisciplinary + holistic
(technical, creative, human skills)
▪ Thinking + Doing
▪ Research took off in 70/80s
▪ Now integrated in engineering/
business programs
▪ Iterative process
▪ The designer innovates to create
value for the user/the company
PRODUCTION
Mass production,
standardisation, feasability
ART & CREATION
Visual, formal, symbolic,
shape, materials, colors,
Emotion, fun, poetry, …
SCIENCE
Theories, methods, process
HUMAN SCIENCES
Empathy, sociology,
anthropology, ethnology,
sense, culture, social, green
CRAFTS
Technical knowledge,
quality, manual labor,
authenticity, prototyping
MARKET(ING)
Mass consumption, Brand,
products, services, pack,
sales, cost, margin
INNOVATION-
CREATIVITY
Finding and solving problems
REASON
CREATION
TECHNOLOGY
Functionalism, ergonomy,
simplicity, humanization
ARCHITECTURE
Structure, mechanisms,
holistic view
IDEOLOGY
Social progress, politic and
cultural preoccupations,
ecology, ‘quality of life’
FORM
Quality, consistency
(Morris)
FUNCTION
(Bauhaus)
SIMPLICITY
(Loewy)
‘HUMANIZATION’
SENSE
(all)
INNOVATION
-
EXPERIENCE
VALUE
For the user
For the company
SYNTHESIS
Source: Vial (2015), Midal (2009), Borja de Mozota (2003), Findeli and Bousbaci (2005)

The
Designer
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
Industrial Design is a strategic problem-solving process that
drives innovation, builds business success, and leads to a
better quality of life through innovative products, systems,
services, and experiences.
(…) It is a trans-disciplinary profession that harnesses creativity to
resolve problems and co-create solutions with the intent of making a
product, system, service, experience or a business, better.
At its heart, Industrial Design provides a more optimistic way of looking at
the future by reframing problems as opportunities. It
links innovation, technology, research, business,
and customers to provide new value and competitive
advantage across economic, social, and environmental spheres.
Industrial Designers place the human in the centre of the
process. (…) They are strategic stakeholders in the innovation
process and are uniquely positioned to bridge varied professional
disciplines and business interests.
HUMAN/PEOPLE
Desirability
What do people desire?
BUSINESS
Viability
Should we do this?
TECHNOLOGY
Feasability
Can we do this?
EXPERIENCE
Successful
Innovation
EMPATHY
Emotional
innovation
RATIONALITY
Process innovation
CREATIVITY
Functional
innovation
Source: World Design Organization (wdo.org), Brown (2009)

The
Designer
HISTORY
ECONOMIC IMPACT
DEFINITION
PROCESS
PARADIGM
▪ The 4 Powers Of Design
Source: Borja de Mozota (2006), Danish Design Ladder (2001), Design impact - Picaud et al (2015), Frog (2017)

The
Designer x
Entrepreneur

The
Entrepreneur
The
Designer
HISTORY
ECONOMIC IMPACT
WHO IS SHE?
HOW DOES SHE DO?
Same trajectory as entrepreneurship with some delay-
HISTORY
Recent fields (20th century), neglected for a while.
1st opposed to the dominant neoclassical model.
Research took off in 80s.
Now included in management/engineering schools.
Social and environmental impact, “re-enchant” daily
life, make sense, humanization of technology.
Backbone of economies, impact on employment
through organizations.
Success, need for achievement, be her own boss
ECONOMIC IMPACT
Boost inno, growth, competitiveness and create
value. Promoted to face new economy’s stakes.
Motivations: profit, business success, quality
innovative solutions, progress (‘change the world’).
Specialist of innovation with specific technical,
creative and human skills.
Solve wicked problems.
Specialist of creating and managing organizations
with specific strategy and management skills.
Takes the risk of running a project on her own.
SKILLS
Holistic and multidisciplinary nature.
Innovative, strategic problem-solving, sensitivity …
Dealing with risk, uncertainty, ambiguity (VUCA
world).
DESIGN ASENTREPRENEURSHIP AS
Main focus on exploration / innovation.
Design thinking as innovation-led.
Create user-centric solutions and experiences.
Main focus on exploitation / execution.
Design thinking as resources-led.
Create organizations, leverage resources.
DEFINITION
Complex definition (multidisciplinary)
Opportunity > Innovation > Value Creation
Thinking and Doing.

DESIGN AS
VISION-TRANSFORMATION
Projective mind, scenarios, imagination.
Define and solve wicked problems in a creative way
ENTREPRENEURSHIP AS
BUSINESS OPPORTUNITY
Rapidly judge the value of the opportunity.
Decide to exploit it.
Permanent screening of the environment
Turning information into opportunities
Role of vision, intuition, emotions.
Specific way of making sense of the world.
DESIGN AS
PERFORMANCE-COORDINATION
Federate multidisciplinary teams through innovation,
creativity, visualization and information sharing.
Improve processes (NPD, TTM, …), leverage resources
ENTREPRENEURSHIP AS
RESOURCES & ORGANIZATION
Gather, leverage, organize and manage financial, human
and material / immaterial resources
Create/Design an organization.
Project disciplines.
DESIGN AS
INNOVATION-DIFFERENTIATION
Create, lead and shape innovation and experiences.
Human-centered + visual/formal skills. Link people
(desirability), business (viability), techno (feasibility)
ENTREPRENEURSHIP AS
INNOVATION DELIVERY
Exploit and deliver innovation to create value.
Focus on technology, but need for user-centricity.
Lean startup, Design thinking, Agile, UX.
Innovation at the hear of entrepreneurship/design.
Global and user-centric innovation to create value,
differentiation, business performance.
Iterative process (prototypes, try & learn, …)
DESIGN AS
GOOD BUSINESS
Optimizes function, value and appearance.
Multiplies value and equity (brand, solutions, …)
ENTREPRENEURSHIP AS
VALUE CREATION
Design and manage organization, mission, vision …
Define the business model and the customer development
strategy. Expert on execution.
Create value for the different stakeholders
(company, employees, customers, shareholders, …)
Design thinking as innovation-led.Effectuation as resources-led.
NEW PARADIGM
New paradigm: rational and learnable iterative process.
Design / entrepreneurship for all.

The
Entrepreneur
The
Designer
DESIGNER x ENTREPRENEUR
OPPORTUNITY > > VALUE CREATION
Strategic problem-solving
Vision, information, project, uncertainty.
Holistic/multidisciplinary skills
Think, Do, Learn. Iterative.
INNOVATION
DESIGNER
Products, services, UX/UI, brand ID …
MANAGES
Innovation process, synthesis btw technical,
visual, creative and human constraints
ENTREPRENEUR
Products, services, UX/UI, brand ID …
MANAGES
Resources, organization, business plan,
business model, sales, equity, risks
BOOSTS CREATION
(exploration)
BOOSTS EXECUTION
(exploitation)
COMMON GROUND
COMPLEMENTARITIES
▪ The entrepreneur’s specialty is
to exploit and deliver
innovation and value through
the design of an organization
and the management of
dedicated resources (human,
financial, material/immaterial),
mainly focusing on execution
(exploitation).
▪ The designer’s specialty is to
create, lead and shape
innovative solutions and
experiences through human-
centered design, visual/formal
skills and synthesis between
people/business/technology,
mainly focusing on creation
(exploration).

The Entrepreneur,
A Designer?
The Designer,
An Entrepreneur?
▪ Cognition: The entrepreneur
designs products, services,
offer … and an organization.
Artifact: entrepreneurial project
▪ But design considered today as
a ‘non-productive’, either divine
or banal / ordinary skill for
management sciences
(Schmitt, 2015)

The Designer
Entrepreneur
DESIGN IN STARTUP
DESIGN IN TECH
THE IDEAL STARTUP
HYBRID PROFILE
SMART IMPULSE
▪ Design ladder
▪ Level 0: no design
▪ Level 1: design as style (brand ID,
products, …) > front door
▪ Level 2, 3: Design thinking (as
innovation method), UX Design
> road to maturity
Source: Elium Studio-Withings-Invoxia, Fabernovel (2016), Sunny Brown/Petr Vlk)

Design in
Startup
DESIGN IN STARTUP
DESIGN IN TECH
THE IDEAL STARTUP
HYBRID PROFILE
SMART IMPULSE
▪ Now designer matters (cost > investment)
▪ From « tech-led » to « experience-led »:
Everything possible, global competition,
ratings, 1-click disengagement, complex
techno > Experience eco, differentiation
through UX, humanization (trust, sense …),
grow in power of design (execs …).
▪ Google, SAP, IBM … as new design leaders
▪ M&A: Growth in acquisition of design firms
▪ Link people, business, technology
▪ Computational design: Computing for
everyone, inclusive. « The future of design
is digital », The « humanist technologist ».
NOW
DESIGN
MATTERS
Source: Maeda-Design in Tech (2016-2018)

Design in
Startup
DESIGN IN STARTUP
DESIGN IN TECH
THE IDEAL STARTUP
HYBRID PROFILE
SMART IMPULSE
▪ Successful startup co-founded by designers:
36% of the 25 funded startups in 2016 were co-
founded by designers (20% in 2015).
▪ Examples: AirBnB, Fab, Lynda.com, Pinterest,
Slack, Github, Shazam, Square, Slideshare,
Behance, Instagram …
▪ VCs’ grow in interest in design: 5 startups
cofounded by designers raised more than
2.75B in capital. Designerfund, 30 weeks, …
▪ Entrepreneur~Designer: solid common ground
and complementarities + design now strategic
+ cofounders shaping the culture of the orga =
go beyond CEO-CTO, adopt a designer founder!
Chief Design Officer (CDO)
Desirability [PEOPLE]
Creates products, services, brand, UX/UI, …
Leads innovation, make synthesis btw
tech/business/human constraints
Chief Technical Officer (CTO)
Feasability [TECH]
R&D, developments, hardware/software
Chief Executive Officer (CEO)
Viability [BUSINESS]
Manage ressources, organization, business plan,
business model, sales, equity, risks.
OPPORTUNITY
INNOVATION
RESOURCES
VALUE CREATION
Source: Maeda-Design in Tech (2016-2018), Venture Beat,

Design in
Startup
DESIGN IN STARTUP
DESIGN IN TECH
THE IDEAL STARTUP
HYBRID PROFILE
SMART IMPULSE
ENTREPRENEUR DESIGNER
The The
NEW HYBRIDPROFILE
• Identification of opportunity
• Creation/management of organizations
• Leverage resources (human, finance,
material/immaterial)
• Create and deliver value
• Solve wicked problems in VUCA world
BUSINESS
DESIGN
TECH
▪ DiT2016: 1/3 of the designers leaders
surveyed had formal
engineering/science training
▪ Importance to invest in education to
develop a more hybrid perspective on
creativity in the 21st century:
Technology x Business x Design.
▪ Great design is not just about ‘design’.
To achieve it, designers need business
thinking/doing – to effectively invest in
design – and great engineering – to
achieve unflagging performance.
“Engineers are efficient problem solvers. Business people think short term. Designers want things to be elegant and
beautiful. All three need to create collaboration and harmony, and honor the value each other brings. There needs to be a
new kind of ‘multi-dimensional’ approach to design that is yet to be invented.”
(Linda Holliday, source: Design in Tech report 2016)
Source: Maeda-Design in Tech (2016-2018)

The Designer
Entrepreneur
DESIGN IN STARTUP
DESIGN IN TECH
THE IDEAL STARTUP
HYBRID PROFILE
SMART IMPULSE
▪ Desirable (people): Product, pack, service,
UX/UI, graphic design, data viz > user-centric,
connected to human needs, usability, simplicity
▪ Feasible (tech): reduced cost, time to market,
engineering facilitation, simplification
▪ Viable (business): lower cost for greater value,
business model design, value creation for all
stakeholders (inc. fundraising)
▪ Leads innovation/coordination: opportunity
identification, innovation fostering, creativity
capacity, agility, prototypes, tests/feedbacks,
visual thinking, int/ext collaboration, process
▪ Strategic: projection, priorities, exec in 1 yr.
“fun to use, easy to install” (Customer)
“(…) Beyond this customer vision and user experience, the design role brought a different methodology that
enriched the design process with rapid prototyping and iterations early in the process for fast returns (...). Finally
the design role through a methodology inviting team members to express themselves or draw to formalize their
ideas, which has stimulated overall creativity within the company.” Charles Gourio, CEO.

Conclusion

Conclusion
VUCA fast-changing world > Innovate or die,
large companies’ troubles, requiring new skills.
>> The entrepreneur and the designer, heroes
of the new economy?
Despite no link mentioned, the entrepreneur/the
designer share a solid common ground
(opportunity / vision, innovation / difference,
~value creation / business, ~resources / perf.)
and are complementary:
▪ Designer boosts creation/lead innovation (explo.)
▪ Entrepreneur boosts exec./resources-biz mgt (exploit.)
Cognition and Effectuation: The entrepreneur
designs a solution / an organization through
artifacts. But design remains often ignored by
management sciences (non-productive, …).
>> Make the link entrepreneur~designer, valorize
design as crucial skill for new economy’s stakes
Design grown in startups (product, brand, design
thinking, UX / digital > ‘Now design matters’).
Designers now executives, VCs interested, New
tech as design leaders, mass acquisition of
design firms. >> Lead research on best examples
(Uber, AirBnB, Blablacar, …)
The designer founder: designers become
entrepreneurs. The ideal startup cofounder team
should be composed of a CEO, a CTO, and now a
CDO (boost inno, desirability, humanize technos,
great UX) >> Lead research on best examples
(AirBnb, Instagram, Pinterest, Slack, Slideshare …)
Need for new hybrid / multi-dimensional profiles
making the synthesis between design, tech and
business. >> Future of design is ‘digital’, inclusive,
Computational design, “humanist technologist”

MERCI !
The Entrepreneur | The ideal Startup | The Designer
by Julien KERLIDOU
MBA Management by Design. May 2018.

Entrepreneurship by Design: The entrepreneur, the designer and the ideal startup (presentation)

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