Uf China Workshop Nov2007 Amit Pande

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
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
I

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
I

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?
I

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
I

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
I

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
I

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
I

Group exercise: Lets put these ideas to work!

Distributed design innovation exercise
DESIGN BRIEF
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

Uf China Workshop Nov2007 Amit Pande

by Amit Pande on Nov 18, 2007

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Uf China Workshop Nov2007 Amit Pande — Presentation Transcript