Design Thinking: A Better Path to
Innovation
InnoFuture, Melbourne, Australia
2008
nathan.com/thoughts/InnoFuture.pdf

Why innovate?

Why innovate?

Why innovate?
Paths to Growth:
• Increase operational efficiencies
• Sell-off assets
• Mergers and acquisitions
• Initial Public Offerings
•“Rebranding”
• Innovation

Why innovate?
Paths to Organic, Lasting Growth:
• Increase operational efficiencies
• Sell-off assets
• Mergers and acquisitions
• Initial Public Offerings
•“Rebranding”
• Innovation

What is innovation?

What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations

What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations

What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations
• A better world

Why can’t most organizations
innovated effectively?

What’s the right context for
innovation?

What’s the right context for
innovation?
Marketing = inhale
Sales, PR, Advertising, etc. = exhale

What’s the right context for
innovation?
Qualitative + Quantitative

What’s the right culture for
innovation?

What’s the right culture for
innovation?
Structured Innovators (18%): Dynamic Innovators (39%):
• Formal process • Strategy guides process
• Led from the middle • Led from top
• Low collaboration • Cross functional teams
• Analytic evaluations • Collaborative
• Iterative • Creative environment
• Risks minimized • Rational inspiration
• Risk-taking is accepted
Creative Innovators (26%):
• “Big Ideas” inspire Ad Hoc Innovators (10%):
• Led from the top • Accidental innovation
• Often haphazard process • Innovation not valued
• Focus on creativity • Creativity not valued
• Risk-taking is accepted • Haphazard process
Innovation Outsourcers (8%):
• Relies on consultants
• Acquires innovation
Cheskin, 2005 • Focus on marketing/PR

Why aren’t organizations
creative enough?

Why aren’t organizations
courageous enough?

Why should innovation be
sustainable?

Why should innovation be
sustainable?

Why should innovation be
meaningful?

Function (Performance):
Does this do what I need?

Price (Value):
Does this do what I need at a
price that’s worth it?

Emotions (Lifestyle):
Does this make me
feel good?

Status/Identity (Values):
Is this me?

Meaning (Reality):
Does this fit into my reality?

Core Meanings:
Accomplishment Harmony
Beauty Justice
Creation Oneness
Community Redemption
Duty Security
Enlightenment Truth
Freedom Validation
Wonder

Meaning:

Experiences:
Duration
Initiation
Immersion Intensity
Conclusion Reflex
Triggers Continuation Habit
Senses: Engagement
Sight
Sound
Smell
Taste
Touch
Cognitive: Breadth
Concepts Product
Symbols Service
Brand
Name(s)
Channel/Environment
(Space)
Promotion
Price
Interaction Significance
Passive Meaning
Active Status/Identity
Interactive Emotion/Lifestyle
Price
Function

What’s the “right” process
for innovation?

What’s the “right” process
for innovation?
design-led innovation:
user-centered research, prototyping,
critique, iteration, embracing constraints

What’s the “right” process
for innovation?

What’s the “right” process
for innovation?

What’s the “right” process
for innovation?

What’s the “right” process
for innovation?

What’s meaningful innovation?
Corporate
Meaning The Focus!
Priorities
Team Customer
Meaning Meaning
Priorities Priorities
Competitors’
Meaning
Priorities