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Design and Systematic New Value Creation




                                           Michael Eckersley, PhD
                                             September 23 June, 2011
                                                       24, 2012
       Jayhawk Consulting                         Michael Eckersley, PhD
about us
OUR PRACTICES         TOUCH            RESULT

human research &      products       new value
   discovery

    concept                          consumer
                      services
  development                        experience

 design strategy      systems        perception

  visualization /     brands       human behavior
    simulation

                    environments   system behavior
the
context
   Organizations are struggling to be
   competitive in a dynamic global
   economy, to achieve sustainable
   growth, and find the future first.
   All at the same time.
   The challenges are significant...
the adaptive corporation
                      (1985)




The corporate environment has grown increasingly
unstable, accelerative, and revolutionary... The
adaptive corporation, therefore, needs a new kind of
leadership. It needs “managers of adaptation”
equipped with a whole set of new, nonlinear skills.
                   –Alvin Toffler, The Adaptive Corporation
sense and respond


“Management is shifting from a stance of
predicting and controlling change to one of
building an organization to sense change and to
respond appropriately – adaptive management”.
                              –Christopher Meyer
                                         Monitor
the gap between what we are
and what we need to be is large




“In the archives of any decent -sized organization, an
unfiltered record will show institutional life in all it’s
boredom and inefficiency. Most initiatives fail. Internal
competition trumps external goals. People are petty,
whiny, and unmanageable.”
                                          –Nicholas Lemann
we have built a system of
 organizational life that
repels human creativity,
 that inhibits innovation
Schedules
                 Goals
               Budgets
               Margins
              Projections
                 Costs
                Teams
                Clients
               Analysts
   too often lost is a sense of
               Vendors
                  PR
cohesion and integrated effort to
                 Sales
create new value, not simply get
              Production
better at delivering existing value
           Service workers
              Managers
              Strategists
              Marketers
              Designers
              Engineers
            Administrators
              Regulators
               Auditors
Innovation: a social phenomenon




   “Innovation is a social or economic term, not
   a technological one, defined in terms of
   demand rather than supply. changing value
   and satisfaction obtained from resources by
   the consumer.”
                                    –Peter Drucker
the growth imperative
                        “90% of all publicly traded companies have
                       proved themselves unable to sustain for more
                         than a few years a growth trajectory that
                       creates above-average shareholder returns.”

                                            –Clayton Christensen & Michael Raynor
                                                           The Innovator’s Solution

© HumanCentered 2007, All Rights Reserved
how?
the approach:
    create the conditions that
    foster organic growth, social
    innovation, integrative
    thinking, creative behavior
All we have is us
                                to produce the futures
                                       we desire




© HumanCentered 2007, All Rights Reserved
management as an art:
                              a systematic practice,
                             intellectual and practical




                                            –Richard Buchanan, Case Western

© HumanCentered 2007, All Rights Reserved
so what’s design?
“Everyone designs who devises
  courses of action aimed at
changing existing situations into
       preferred ones.”
            –Herbert Simon
“Design is a complex problem
      solving process whereby artifacts
        are structured to attain goals”
                            –Herbert Simon




            so what’s design?
   products         conceived                functionality
    services       programmed                  reliability
     brands          organized                   beauty
communications      developed                   elegance
    systems             built                 profitability
  experiences         crafted                  efficiency
      etc.          engineered                  viability
                     fashioned                     etc.
                        etc.
so what is design?

                    In most people's vocabularies, design means
                    veneer. It's interior decorating. It's the fabric of
                    the curtains of the sofa. But to me, nothing could
                    be further from the meaning of design. Design is
                    the fundamental soul of a human-made creation
                    that ends up expressing itself in successive outer
                    layers of the product or service.
                                                              – Steve Jobs



© HumanCentered 2007, All Rights Reserved
so what is design?


"Design is only secondarily about pretty
lumpy objects, and primarily about a whole
approach to doing business, serving
customers, and providing value."
"Design... has become central to enterprise
strategy."
                                  –Tom Peters
design helps here
              Q2-2011        Q2-2012        Q3-2013         Q1-2014       Q1-2015

              OUR WORK




               offering       offering       offering        offering
                                                             offering      offering


               Now            Next           Soon            Later         Who
                                                                          knows?




  1. understanding        2. identifying patterns        3. creating concepts         4. prototyping the
users and the context       and reframing the           that build experiences            innovations
   of the problem                problem                     for users and
                                                                                       –Patrick Whitney, ID, IIT
                                                        economic value for the
                                                               company
What is design thinking?

             1. Conditioned inventiveness
             2. Human-centered focus
             3. Environment-centered concern
             4. Ability to visualize
             5. Tempered optimism
             6. Bias for adaptivity
             7. Predisposition toward multi-functionality
             8. Systemic vision
             9. View of the generalist
             10.Ability to use language as a tool
             11.Affinity for teamwork
             12.Facility for avoiding the necessity of choice
             13.Self-governing practicality
             14.Ability to work systematically with qualitative
                information                           –Charles Owen, IIT


© HumanCentered 2007, All Rights Reserved
www.vimeo.com/5750600



© HumanCentered 2004, All Rights Reserved
© HumanCentered 2004, All Rights Reserved
We know how to engineer almost anything
                           The harder problem today is knowing what
                                          to innovate



       our task: bring decisions about user experience
         into the early stages of development. Align
          strategic benefit with the consumer value

© HumanCentered 2004, All Rights Reserved
the conventional
business approach      create a     develop      sell them to
                       business     offerings     customers
 (predict & provide)
         >



   build the bridge
         >




                         deeply
a human-centered                     develop        build a
                       understand
 design approach                    concepts &     business
                         users/
                                     offerings   around them
  (learn & respond)     contexts




                                                      adapted from Vijay Kumar, IIT
Sources of design innovation
+4                                                                       top-down
        High Search:
                                      global
                                                                        innovations
+3      environmental
          & market
            factors               macro economic
+2
                                  market/industry

+1
                                  organizational


 0                      “street-level” issues & operations

                                physical/biological
-1
                                   socio-cultural
-2
         Deep Search:
                                   psychological
           human
-3         factors
                                     spiritual
                                                                         bottom-up
-4                                                                      innovations
     Learning                                                Learning
      Cycle 0                          (time)                 Cycle 1
Jobs That People Hire Online Banks To Do
 Retail and Business Banking 2010
                                                                             A




                                       cted
                          eavil y reda        Product development overview
               tio n is h           iality
     In forma          f con fident
          for s ake o



28
Design and Systematic New Value Creation




                                           Michael Eckersley, PhD
                                             September 24, 2012
       Jayhawk Consulting

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Design and Systematic New Value Creation

  • 1. Design and Systematic New Value Creation Michael Eckersley, PhD September 23 June, 2011 24, 2012 Jayhawk Consulting Michael Eckersley, PhD
  • 3. OUR PRACTICES TOUCH RESULT human research & products new value discovery concept consumer services development experience design strategy systems perception visualization / brands human behavior simulation environments system behavior
  • 4.
  • 5.
  • 6. the context Organizations are struggling to be competitive in a dynamic global economy, to achieve sustainable growth, and find the future first. All at the same time. The challenges are significant...
  • 7. the adaptive corporation (1985) The corporate environment has grown increasingly unstable, accelerative, and revolutionary... The adaptive corporation, therefore, needs a new kind of leadership. It needs “managers of adaptation” equipped with a whole set of new, nonlinear skills. –Alvin Toffler, The Adaptive Corporation
  • 8. sense and respond “Management is shifting from a stance of predicting and controlling change to one of building an organization to sense change and to respond appropriately – adaptive management”. –Christopher Meyer Monitor
  • 9. the gap between what we are and what we need to be is large “In the archives of any decent -sized organization, an unfiltered record will show institutional life in all it’s boredom and inefficiency. Most initiatives fail. Internal competition trumps external goals. People are petty, whiny, and unmanageable.” –Nicholas Lemann
  • 10. we have built a system of organizational life that repels human creativity, that inhibits innovation
  • 11. Schedules Goals Budgets Margins Projections Costs Teams Clients Analysts too often lost is a sense of Vendors PR cohesion and integrated effort to Sales create new value, not simply get Production better at delivering existing value Service workers Managers Strategists Marketers Designers Engineers Administrators Regulators Auditors
  • 12. Innovation: a social phenomenon “Innovation is a social or economic term, not a technological one, defined in terms of demand rather than supply. changing value and satisfaction obtained from resources by the consumer.” –Peter Drucker
  • 13. the growth imperative “90% of all publicly traded companies have proved themselves unable to sustain for more than a few years a growth trajectory that creates above-average shareholder returns.” –Clayton Christensen & Michael Raynor The Innovator’s Solution © HumanCentered 2007, All Rights Reserved
  • 14. how? the approach: create the conditions that foster organic growth, social innovation, integrative thinking, creative behavior
  • 15. All we have is us to produce the futures we desire © HumanCentered 2007, All Rights Reserved
  • 16. management as an art: a systematic practice, intellectual and practical –Richard Buchanan, Case Western © HumanCentered 2007, All Rights Reserved
  • 17. so what’s design? “Everyone designs who devises courses of action aimed at changing existing situations into preferred ones.” –Herbert Simon
  • 18. “Design is a complex problem solving process whereby artifacts are structured to attain goals” –Herbert Simon so what’s design? products conceived functionality services programmed reliability brands organized beauty communications developed elegance systems built profitability experiences crafted efficiency etc. engineered viability fashioned etc. etc.
  • 19. so what is design? In most people's vocabularies, design means veneer. It's interior decorating. It's the fabric of the curtains of the sofa. But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a human-made creation that ends up expressing itself in successive outer layers of the product or service. – Steve Jobs © HumanCentered 2007, All Rights Reserved
  • 20. so what is design? "Design is only secondarily about pretty lumpy objects, and primarily about a whole approach to doing business, serving customers, and providing value." "Design... has become central to enterprise strategy." –Tom Peters
  • 21. design helps here Q2-2011 Q2-2012 Q3-2013 Q1-2014 Q1-2015 OUR WORK offering offering offering offering offering offering Now Next Soon Later Who knows? 1. understanding 2. identifying patterns 3. creating concepts 4. prototyping the users and the context and reframing the that build experiences innovations of the problem problem for users and –Patrick Whitney, ID, IIT economic value for the company
  • 22. What is design thinking? 1. Conditioned inventiveness 2. Human-centered focus 3. Environment-centered concern 4. Ability to visualize 5. Tempered optimism 6. Bias for adaptivity 7. Predisposition toward multi-functionality 8. Systemic vision 9. View of the generalist 10.Ability to use language as a tool 11.Affinity for teamwork 12.Facility for avoiding the necessity of choice 13.Self-governing practicality 14.Ability to work systematically with qualitative information –Charles Owen, IIT © HumanCentered 2007, All Rights Reserved
  • 24. © HumanCentered 2004, All Rights Reserved
  • 25. We know how to engineer almost anything The harder problem today is knowing what to innovate our task: bring decisions about user experience into the early stages of development. Align strategic benefit with the consumer value © HumanCentered 2004, All Rights Reserved
  • 26. the conventional business approach create a develop sell them to business offerings customers (predict & provide) > build the bridge > deeply a human-centered develop build a understand design approach concepts & business users/ offerings around them (learn & respond) contexts adapted from Vijay Kumar, IIT
  • 27. Sources of design innovation +4 top-down High Search: global innovations +3 environmental & market factors macro economic +2 market/industry +1 organizational 0 “street-level” issues & operations physical/biological -1 socio-cultural -2 Deep Search: psychological human -3 factors spiritual bottom-up -4 innovations Learning Learning Cycle 0 (time) Cycle 1
  • 28. Jobs That People Hire Online Banks To Do Retail and Business Banking 2010 A cted eavil y reda Product development overview tio n is h iality In forma f con fident for s ake o 28
  • 29. Design and Systematic New Value Creation Michael Eckersley, PhD September 24, 2012 Jayhawk Consulting