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Uf China Workshop Nov2007   Amit Pande

Uf China Workshop Nov2007 Amit Pande



Distributed design innovation - talk at User Friendly 2007 Beijing, China

Distributed design innovation - talk at User Friendly 2007 Beijing, China



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Uf China Workshop Nov2007   Amit Pande Uf China Workshop Nov2007 Amit Pande Presentation Transcript

  • Amit Pande, Oracle Deepa Bachu, Intuit Nov 25, 2007 User Friendly 2007, Beijing, China Creating a culture of distributed design innovation
  • A few housekeeping notes
    • Slides for this workshop will be available at http://www.slideshare.net/amitpande/
    • Blog for continuing discussions on this topic – http://distributedinnovation.wordpress.com
    • You should each have a file folder which contains
      • Slide handouts
      • Workshop design exercise
      • Additional reference material
  • Workshop schedule 10:15 - 11:00 am Session 3: Innovation framework: People, Process, Product 11:00 - 11:30 am Group exercise: Create a solution for an opportunity in your marketplace using the Innovation framework 11:30 am – 12:00 pm Analysis of group exercise – map and discuss solutions 12:00 – 12:30 pm Wrap-up and next steps 10:00 – 10:15- am BREAK 9:30 – 10:00 am Session 2: Implications, challenges of distributed design innovation 9:00 – 9:30 am Segment 1: Global trends and context of distributed design innovation 8:30 – 9:00 am Workshop overview and audience introductions
  • Workshop overview and format
    • Work together to understand how to harness opportunities of distributed design innovation
    • Specific focus o n
      • Understanding distributed design innovation
      • Tapping new market needs
      • Emerging markets
    • 3 segments in today’s workshop (About 1 hour each)
      • Context of globalization and Distributed Design Innovation
      • Understanding challenges of Distributed Design Innovation
      • Developing a framework for Distributed Design Innovation
    • Hands on exercise
  • Introductions
    • About us
    • Who you are what you do
    • Your specific interest in this workshop
    • The o ne thing you seek to takeaway from today
  • Segment 1: Key global trends and context of Distributed Design Innovation
  • Emerging markets driving global economy
    • Fortune magazine states that one-third of GM’s global auto profits come from China, even though it has only 12 percent of the Chinese market
    • China and India remain fastest growing telecom markets for a while  
  • Technology creation getting more global
    • R&D spending by Fortune 500 companies has increased significantly in emerging markets
    • R&D spending goes beyond cost-based outsourcing – Focus on product design, product development and other value added activities
    • … 24 Chinese firms made it to Fortune Global 500 in 2007, so did 6 Indian firms.
    Source: http://www.strategy-business.com/media/image/06405-ex_03.gif
  • Technology footprint increasing in region
    • 100 of the Fortune 500 companies have R&D facilities in India. Similar numbers have facilities in China
    • In addition, many Asian tech companies growing exponentially
  • Talent pool getting distributed
    • By 2010, China and India combined will graduate 12 times the number of engineers, mathematicians, scientists and technicians as the US
    • China and India have contributed the largest number of foreign students to North America for 7 years in a row
  • Specifically, design talent getting global
    • Asia continues to rise as a strategic design hu b
    • 10 schools now in Asia in top 50 global design schools
    • After success of Japan, Korea, Singapore – China and India gradually creating design footprint
    Source: Business Week - http://images.businessweek.com/ss/07/10/1005_dschools/source/1.htm
  • Putting together these trends
    • Technology consumption is getting global and fragmented
      • Millions of new end users in emerging markets
      • Strong demand for hardware, software and services
      • New platforms and new business models. E.g.: Mobile payments
    • Technology production is getting distributed and global
      • Talent pool of thousands of technologists, scientists, designers spread across key international locations
    • Competition and opportunities are both global and local
      • Fortune 500 companies have captive centers in India, China
      • Small and local startups are creating new niche segments
    • Within this complex landscape, some companies are using distributed design innovation as a key competitive strategy and creating new market opportunities…
    • Some examples
      • Nokia
      • Babajob.com
      • Apple
    What do these trends mean for us?
  • Nokia
    • 200 million sales worldwide since its launch in 2003
    • More than iPod, RAZR, Chocolate, PS2 in numbers
    • Highest uptake in emerging markets
    • Dust proof with flashlight
    • No color display
  • Babajob
    • Connects India’s elites to the people who need jobs but lack the connections to find them
    • Maids, cooks, chauffeurs, carpenters, other workers
    • Job seekers advertise skills, employers advertise jobs and matches are made through social networks.
  • Apple Source: http://slideshare.net
  • What’s common in th ese 3 stories?
    • Apple – Breakthrough User experience, Industrial Design and good marketing
    • Babajob – Specific and local business model for unmet user needs
    • Nokia – Unique value added features for developing markets
    • In all these cases, distributed design innovation was a key differentiator for market success …
  • Segment 2: Understanding Distributed Design Innovation and its challenges
  • A reality check on design innovation
    • Despite the outliers mentioned earlier, many Fortune 500 companies and local start-ups focus only on cost advantages (‘outsourcing’)
    • Engineering and design talent in emerging economies often focused on global (US/Europe centric) end user needs
    • However, as emerging markets drive global business, engineers and designers in China/India are beginning to focus on improvements, and new product innovation
    • Emerging (BRIC) market consumers seek relevant products and services – but not enough exist. Millions of unmet user needs remain.
    • Imagine the market potential of innovations such as Skype or Facebook or Google Phone for emerging markets!!
  • Points to consider
    • While innovation is easy in principle, it is difficult in practice
    • Most companies are either 500 lb gorillas or small fishes – bound by size or available resources
    • Global multi-sourcing not easy – designers, software engineers, product managers talent spread across locations
    • Product development approaches and existing products in one location do not always work well in another
    • End user needs are very complex and sophisticated – users in urban China or rural India have different needs/aspirations
    • Dealing with different cultures, new end users, and working/thinking processes makes distributed design innovation difficult !!
  • However, distributed design innovation presents unique opportunities
    • Rare opportunity to benefit from few untapped global markets
    • All necessary conditions for the ‘Perfect Storm’
      • Large base of designers and technologi sts
      • Dynamic and rapidly growing local markets till 2030
      • Presence of large companies, consultancies, free wheeling talent
    • However ..
      • Above Ingredients in themselves not sufficient
      • Distributed innovation is fraught with risks and pitfalls
      • Need proven and simple structures and methods to implement distributed design innovation in your organizations
    • Audience feedback on your main obstacles to distributed design innovation
    • Share stories in pairs
    • Some sample innovation killers
      • People did not see it coming
      • Executive management tunnel visioning
      • Product was commoditized, undifferentiated
      • Did not understand the market or real consumer needs
      • Product was before it’s time
      • Product was a solution in search of a problem
      • Customer need was not clearly understood
    Group brainstorming exercise
  • Segment 3: Developing a framework for Distributed Design Innovation
  • Framework for Distributed Design Innovation People Process Product I Innovation Framework
  • Framework for Distributed Design Innovation People Process Product I Innovation Framework
  • Framework for Distributed Design Innovation: People
    • People are the foundational basis of success in Distributed Design Innovation activities
    • What to look for when hiring a distributed design team
      • Leverage global pool of talent through local ecosystems
      • Few core skills - creative engineers, tech savvy designers, thought leaders
      • Well rounded, passionate, pro-active individuals
      • Both out-of-box and in-the-box thinking
      • Motivated, engaged, who will fit socially in your organization
      • Individuals who want to understand the problem they’re solving
      • Diverse backgrounds and cultures, interests and experience
      • Those who savor surprises, emergence, and flexibility
  • Framework for Distributed Design Innovation: People
    • How to engage and retain people in emerging markets
      • Treat people as peers, not resources
      • Build trust, keep reinforcing trust
      • Balance face to face and virtual team work
      • Reward people meaningfully
      • Research shows that after 1 year, performance starts dipping
        • Consider job rotation within innovation roles
        • Consider moving staff across offices
      • Dedicate someone to care & nurturing of virtual team
      • Invest in engaging and inspiring workplaces
  • Framework for Distributed Design Innovation: People
    • Key roles within innovation – Your team should have a mix of skills
      • Understand problems worth solving for your business
        • Observe and absorb customer requirements for new products
        • Feed forward and feed back with customers in the field
      • Generate ideas that solve the problem
        • Brainstorm and create multiple ideas
        • Bring concepts from related worlds and competitors
      • Build on the ideas
        • Experiment with technologies and platforms
        • Storyboard to make ideas tangible
      • Realizing the ideas
        • Push through budget constraints and politics
        • Collaborate with other teams, customers and partners
      • So, what are these people called? What do they look like?
  • Framework for Distributed Design Innovation People Process Product I Innovation Framework
  • Framework for Distributed Design Innovation: Process
    • Great ideas are the fountainhead of great products…
    • Create an environment for creative ideas
    • Encourage constructive dialogues and conflicts
    • Emphasize brainstorming and experimentation
    • Use triads – Design, Technology, Strategy
    • Focus on User Centered Design and Innovation
  • Framework for Distributed Design Innovation: Process
    • User Centered Design is the cornerstone of any innovation activity
    • Understanding user needs th rough in context participant observation, ethnographic field visits, in lab sessions
    • Focus on early sketching, wireframes, quick prototypes
    • Iterate with users several times – measure and track issues
    • Focus on both Design and Usability aspects
    • Focus on often-ign ored aspects of the product – login screens, configurations and settings, button text, error messages
  • Framework for Distributed Design Innovation: Process
    • But ideas are nothing without execution…
    • Organize your multi-location teams based on competency and fit
    • Don’t do dead and lengthy documents
    • Use lightweight, flexible technology within your team
      • Wikis, RSS feeds, light project management and reporting
      • Technology should be persistent
    • Keep your tasks small and your timeline smaller
    • Meetings can be wasteful - respect alone time
    • Create a process so people know where they are
    • Regular check ins
  • Framework for Distributed Design Innovation People Process Product I Innovation Framework
  • Framework for Distributed Design Innovation: Product I
    • What's the headline? What is the real unmet need you are solving?
      • “ Pay your bills on time, every time”
    • Ignore details early on
      • Basecamp did not have charts, bar graphs
    • Give customers just enough features to address 1 or 2 key needs
      • E.g.: Ward Cunningham’s original Wiki
    • Start with the User Interface first
      • Focus on ignored usability aspects: admin screens, login screens, text simplicity
    • If you optimize for everybody, it is great for nobody
      • Housewives in Tokyo versus all the women in Japan
  • Framework for Distributed Design Innovation: Product
    • Provide open forums to your customers
    • Consider new approaches – ‘Cloud computing’
    • Encourage experimentation ala Google Labs
    • Sign up early adopters ala the gaming industry
    • Get product out into the field and get quick learnings
    • Iterate till you get it right!
    • Monetization can come later
    • Be open to changing your business model
      • E.g. of Flickr began as a game called the Game Neverending
  • Group exercise: Lets put these ideas to work!
  • Distributed design innovation exercise
    • You have to solve the problem of “getting bills paid on time” for your local market
    • Exercise details are in your worksheet
    • Select the people, follow a process, create a product
      • People – who would you choose within constraints. Select from 12 people profiles.
      • Process – which design processes would you choose . Select among several design processes.
      • Product – what would you finally build, how would you phase it out
  • Discussion on exercise
    • What was our solution
    • What is your different solutions
    • Discuss differences/overlap
  • Conclusions: Putting it all together
  • How to stay in touch
    • http://www.slideshare.net/amitpande/ or http://amitpande.com
    • http://distributedinnovation.wordpress.com
    • Email us
      • [email_address] and [email_address]
      • [email_address]
    • Visit us at http://upabangalore.org