Iintroduction to strategic design

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Iintroduction to strategic design

  1. 1. Introduction to strategic design Eirik Langås, Screenplay
  2. 2. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  3. 3. Freia
  4. 4. 08.09.2010
  5. 5. 08.09.2010 © SCREENPLAY 6
  6. 6. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  7. 7. Task: Form groups of 4-5 people describe the perfect tool for organising your group meetings throughout this autumn. Time: 10 minutes 08.09.2010 © SCREENPLAY 8
  8. 8. 08.09.2010 © SCREENPLAY 9
  9. 9. The design process (simplified) Creative Analysis Solution phase
  10. 10. http://grandburo.com/store/product.detail.php?pid=245
  11. 11. Design is about creating something with a purpose
  12. 12. Design overload? / Handbag PAGE 14
  13. 13. Design overload? / Kitchen 15
  14. 14. Three aspects of design Visceral design: Appearance Behavioural design: Pleasure and effectiveness of use Reflective design: Rationalisation and intellectualisation SIDE 16
  15. 15. SIDE 17
  16. 16. 08.09.2010 SIDE 18
  17. 17. 9/8/2010 © SCREENPLAY 19
  18. 18. 20
  19. 19. Design is not about ugly or nice 1/2 Positively separate organizations, products or services from competitors  Why do you choose one product from the shelve instead of another? Give the organization, product or service an quality advantage  Or value for money (design can increase value without increasing the production cost)  Positive substitute variables gives increase in sales (eg. pc design) 21
  20. 20. Design is not about ugly or nice 2/2 Identify organizations, products or services  Create awareness (exposure preference – evoked set)  Visual symbols are remembered most easy Symbolise the brand  The identity must be loaded (positioning) so that it gives meaning and increase perceived value  The richer the better 22
  21. 21. Design adds value in various ways Design can communicate what you cannot say • We are cool and youthful • Emotions – like music • Ex romantic perfume What you cannot say is often what you like (liking) • The rationale consumer is dead. (Think – feel – do) • Feel – do – think • Feel – think – do Design can improve performance • Easy to read • Easy to use • Simplify complex tasks or communication 23
  22. 22. Honda – Choir
  23. 23. Design is an activity Problem solving Finding alternatives Design shines where Design creates the outcome is unclear options Empathy Ideation and Design serves a prototyping human purpose Design produces things From Mehrholz, P., Schauer, B. , Verba, D. and Wilkens, T. (2008): Subject to Change; Adaptive Path/O’Reilly
  24. 24. Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking” 9/8/2010 © SCREENPLAY 26
  25. 25. “Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value.” Philipp Kotler (Marketing guru) PAGE
  26. 26. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  27. 27. A strategy is an explicit goal and a vision of how to get there
  28. 28. What is strategy? A goal Mostly: Sell more, become young and trendy More rare: Increase the sale of the product by x % with young, urban men 30
  29. 29. Task: Increase the sale of diamonds with young, urban men 08.09.2010 31
  30. 30. What is strategy? A goal Mostly: Sell more, become young and trendy More rare: Increase the sale of the product by x % with young, urban men …and how to reach it Make young men buy bigger or more diamonds for their girfriends more frequently 32
  31. 31. SIDE 33
  32. 32. What is strategy? A goal Mostly: Sell more, become young and trendy More rare: Increase the sale of the product by x % with young urban men …and how to reach it Young men should wear diamonds more often SIDE 34
  33. 33. Strategy vs. tactics: A (very) simplified view Strategy: Tactics: The plan What you do 08.09.2010 © SCREENPLAY 35
  34. 34. Strategy – some implications • Strategy requires trade-offs: If you choose one path, you are ignoring another • Viable strategies focus on unique positions and activities • Strategies combine and orchester various aspects – tangible and intangible, products and services, … • Strategy has a (long) time aspect • Strategies should be assessed and revised Based on: Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78 36
  35. 35. What is the difference? 08.09.2010 © SCREENPLAY 37
  36. 36. From:Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78 08.09.2010 © SCREENPLAY 38
  37. 37. “Thus my definition of strategy: What makes you unique and what is the best way to put that difference into the minds of your customers and prospects.” Jack Trout, Trout on Strategy 39
  38. 38. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  39. 39. “If showbusiness wasn’t a business it would be called show show.” Woody Allen
  40. 40. Strategic design Using design, visual arts, arts, humanistic and cultural thinking, psychology etc. to support achievement of strategic business goals (e.g. making more money, raise awareness, create sympathy, ...). 42
  41. 41. Strategic design is used for many purposes • Create new products and services • Improve existing products and services • Develop services that support physical products • Develop products that improve services • Develop new markets • …
  42. 42. Design before and now (simplified) Before: Now: Product Designed product (ecosystem) Produkt with design
  43. 43.
  44. 44. The devil is in the details What does this What does this What does this smell like? sound like? feel like? 46
  45. 45. What is the product? Additional services Services / warranties Add ons / extras Core Product Back seat heaters Free service after one year Insurances etc. 08.09.2010 47
  46. 46. Three examples
  47. 47. 08.09.2010 SIDE 50
  48. 48. |
  49. 49. Ecosystem: The mp3-player is just one part of the success iPod iTunes iTunes Music Store Play Manage Acquire Adapted from Mehrholz, P., Schauer, B. , Verba, D. and Wilkens, T. (2008): Subject to Change; Adaptive Path/O’Reilly
  50. 50. 9/8/2010 © SCREENPLAY 55
  51. 51. (Service) design offers tools to solve strategic issues Understanding Thinking (framing) • Benchmarking • Affinity diagram • Ecology map • Fishbone diagram • Etnographic studies • Unfocus group Filtering Explaining • Heuristic evaluation • Experience prototyping • Personas • Metaphors Saco, Roberto M. & Goncalves, Alexis P. (2008): “Service Design: An Appraisal” 9/8/2010 © SCREENPLAY 56
  52. 52. 9/8/2010 © SCREENPLAY 57
  53. 53. Zeit – Architect
  54. 54. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  55. 55. Analysis and design are separate phases Assignment/ Concept/ brief/… prototype/… 1. Analysis • Market and users 2. Creative phase • Business • Design research opportunities • Sketching Solution • Communication • Prototyping and brand targets • Obeservation • Technology • … • …
  56. 56. Analysis and design are separate phases Assignment/ Concept/ brief/… prototype/… 1. Analysis • Market and users 2. Creative phase • Business • Design research opportunities • Sketching Solution • Communication • Prototyping and brand targets • Obeservation • Technology • … • …
  57. 57. Analysis is the foundation for formulating the task (and thereby the solution) BAV III/IV – Ice Cream - Total Population 100 Statistics- and Pralinato Häagen-Dazs Magnum Mövenpick Customer Solero Differenzierung + Relevanz surveys Frisco Extrême Frisco behaviour Markenvitalität Crème d’Or Pierrot-Lusso BAV 2003 50 BAV 2000 Carte d’Or Brand studies 0 50 100 Markenstatur Wertschätzung + Vertrautheit Buying- /information proces Specific web- and market trends as well as „Best Practice“ Competitor General web- and analysis market-trends
  58. 58. Task: Design a vase.
  59. 59. 08.09.2010 © SCREENPLAY 64
  60. 60. Task redefined: Design something to help people enjoy flowers in their homes.
  61. 61. Analysis and design are separate phases Assignment/ Concept/ brief/… prototype/… 1. Analysis • Market and users 2. Creative phase • Business • Design research opportunities • Sketching Solution • Communication • Prototyping and brand targets • Obeservation • Technology • … • …
  62. 62. Analysis and design are separate – and very different – phases Assignment/ Concept/ brief/… prototype/… 1. Analysis • Market and users • Business opportunities Solution • Communication and brand targets • Technology • …
  63. 63. Designing is about exploring possibilities
  64. 64. A concept is developed by exploring the ”network of possible wanderings” After Herbert Simon, Nobel Laureate (http://tr.im/xh9J) 9/8/2010 © SCREENPLAY 69
  65. 65. Analysis and design are separate phases Assignment/ Concept/ brief/… prototype/… 1. Analysis • Market and users • Business opportunities Solution • Communication and brand targets • Technology • …
  66. 66. Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking” 9/8/2010 © SCREENPLAY 71
  67. 67. Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking” 9/8/2010 © SCREENPLAY 72
  68. 68. Analysis and design are separate phases Assignment/ Concept/ Today brief/… 07.10 prototype/… 1. Analysis • Market and users • Business opportunities Solution • Communication and brand targets • …
  69. 69. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  70. 70. ”A market segment is a target group (singled out from a large universe or market) that is believed to be receptive to the brand concept or idea in a way that others are not” Kellog on branding by Alice M. Tybout, Tim Calkins, Kellogg School of Management 08.09.2010 © SCREENPLAY 75
  71. 71. Spot the business student
  72. 72. How do we get to know our customers? Qualitative information Focus groups ”Shop along” Observation at home/in the 1to1 interview Usability test workplace/… Telephone interview ”Eye-tracking” What the What the user says user does Report from call center Purchasing statistics User Web analysis Quantitative information 08.09.2010 77
  73. 73. | PLANNING IN A NUTSHELL, PAGE 78 15.11.2006
  74. 74. Vor Ort: Tasks wie z.B. Diary | PLANNING IN A NUTSHELL, PAGE 79 15.11.2006
  75. 75. User Interviews: Topics • History with the company – Intro to company, usage/purchase history, early impressions • Domain experience and knowledge – Domain expertise, competitors, share of wallet • Goals and behaviors – Needs/triggers for usage, typical process, channel usage, feature and content usage, gaps, wish list • Attitudes and motivators – Description of experience, likes/dislikes, influencers, psychological drivers • Opportunities – Reaction to new ideas, features, content, improvements • Observation of actual behavior (field studies, usability tests) From: Mulder, Steve: The user is always right: New Riders 2007
  76. 76. How do we use what we know?
  77. 77. Segments: Target groups and needs The Sensoric The Sociable The concerned Expectations Taste, packaging Whith teeth Prevention of tooth deseases Demographics Kids Young people Big families Behaviour Loves Smokes Intensive usage peppermint Preferred brands Colgate stripe Ultra Brite Pharmaceutical Personality Self concerned Contact seeking Hypochondriac Lifestyle Hedonistic Active Conservative 08.09.2010 SIDE 83
  78. 78. Segmentation: The Tests • Your segments should… • Explain key differences you’ve observed among users • Be different enough from each other • Feel like real people • Be described quickly • Cover all users • Clearly affect decision making From: Mulder, Steve: The user is always right: New Riders 2007
  79. 79. Segmentation by behaviors and attitudes – example FedEx Level of preparation Desired level of personal interaction From: Mulder, Steve: The user is always right: New Riders 2007
  80. 80. Possible segmenting of students prior to the Norwegian election Sense of civic duty Fear struck Student- duty-voter politician Happy go Hyperactive lucky non-voter Degree of engagement/involvement in student activities
  81. 81. Task: Segmenting 9/8/2010 Screenplay 87
  82. 82. 08.09.2010 © SCREENPLAY 88
  83. 83. Task: Segmenting • iTunes need to continuously develop their offering • In order to do so they need to focus on certain segments • Your task: Create possible segments for the iTunes to help them develop new services • Create the segments using attitudes and behaviours as discussed • Use the four-field matrix as discussed • Time for group work: 10 minutes 08.09.2010 © SCREENPLAY 89
  84. 84. Questions that might help • How do they discover new music? • How do they feel about illegal downloading? • When do they listen to music? • How often do they listen to music? • How (if at all) do they share their music? 08.09.2010 © SCREENPLAY 90
  85. 85. Segmentation by behaviors and attitudes Behaviour/attitudes Behaviour/attitudes From: Mulder, Steve: The user is always right: New Riders 2007
  86. 86. Segmentation by behaviors and attitudes Cares for the quality of the files Downloads illegal music Readiness for new music styles
  87. 87. Segmentation by behaviors and attitudes Trust in their own taste Readiness for new music styles
  88. 88. Levis – Odysse
  89. 89. Playstation – Double life
  90. 90. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  91. 91. 5) Decisions should be based on users 4) Knowledge about users must be actionable 3) Learning about users requires direct contact 2) You are not your user 1) Business results depend on satisfying users From: Mulder, Steve: The user is always right: New Riders 2007
  92. 92. What are personas? • Personas are examples of a typical user in a target group – they are stand ins for real users • Personas not real people but represent real humans throughout the design process • As a tool, personas are widely used for both interface- and product design • Increasingly the marketing world takes interest in personas as well • Even though personas are fictious they should be precisely described precisely • In order to make personas more real they are given real names and personal details 08.09.2010 98
  93. 93. Target groups vs. personas Demographic target groups Personas Age Behaviors Income Goals Gender Other demographics Attitudes Focus: Sell to people Focus: Understand how people will actually use the product From: Mulder, Steve: The user is always right, New Riders 2007
  94. 94. Main elements of a persona • Name and age • Personal information • Domain knowledge • Relevant attitudes • Narrative • Goals, needs and desires • Business objectives Illustration from: http://www.agile-ux.com/2009/12/02/personas-in-agile-development-yes-we-can/ 08.09.2010 © SCREENPLAY 100
  95. 95. Possible segmenting of students prior to the Norwegian election Sense of civic duty Fear struck Student- duty-voter politician Happy go Hyperactive lucky non-voter Degree of engagement/involvement in student activities
  96. 96. Election & students: possible personas Fear struck Hyperactive Happy go lucky duty-voter non-voter Marit, 22 Andreas, 24, Stian, 21, from Bergen from Skarnes from Tromsø • Marketing at BI • Studies electrical • Teacher student at (2nd year Bachelor) engineering at NTNU in Høgskolen i Nesna • Fadder for 1. års- Trondheim (masters • Skibum studentene degree, 3rd year) • Plays in the band at UKA ”There doesn’t seem to be ”What? Is there an ”Is election day a public a party that fits me.” election? Excellent, that holiday? I’m off kiting.” will make for some good jokes...”
  97. 97. Personas enable focus
  98. 98. Personas ensure empathy
  99. 99. Personas are good for consensus From: Mulder, Steve: The user is always right, New Riders 2007
  100. 100. Personas create efficiency From: Mulder, Steve: The user is always right, New Riders 2007
  101. 101. Personas lead to better decisions Personas for Strategy Framework for business decisions, offerings, channel usage, features Personas for Marketing Framework for marketing campaigns, branding, messaging, market research Personas for Design Information architecture, interaction design, visual design, content development, user testing From: Mulder, Steve: The user is always right, New Riders 2007
  102. 102. Personas come alive in different ways
  103. 103. Persona card From: Mulder, Steve: The user is always right, New Riders 2007
  104. 104. Actual 1:1 persona-profiles From: Mulder, Steve: The user is always right, New Riders 2007
  105. 105. Persona office space From: Mulder, Steve: The user is always right, New Riders 2007
  106. 106. The most common German living room
  107. 107. Use personas to identify issues… Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking” 08.09.2010 © SCREENPLAY 113
  108. 108. …and organise these to create meaning Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking” 08.09.2010 © SCREENPLAY 114
  109. 109. PERSONAS Typical quote: Situation: Personal information Name: Age: Lives: Education: The users needs and desires Business goals What does the person want? What do we want the person to do? Home life Appreciates Hobbies
  110. 110. Today’s topics • About Screenplay and me • What is design? • What is strategy? • Why is strategic design important? • The design process • Target groups and segmenting • Introduction to personas • Personas • Business targets and branding • Touch points • Recap and outlook
  111. 111. Typical business targets Quantitative • Reduce costs 1) How do we identify • Sell more the problem? • Recruit new customers 2) How do solve the • Increase awareness by XY% problem? (i.e. what • … do we do?) 3) How do we measure Qualitative if it works? • Improve image • Create an attitude • Improve perceived quality • …. 08.09.2010 © SCREENPLAY 117
  112. 112. From:Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78 08.09.2010 © SCREENPLAY 119
  113. 113. Example Hotel 08.09.2010 © SCREENPLAY 120
  114. 114. Kim, W. Chan & Mauborgne, Renée (1997): “Value Innovation. The Strategic Logic of High Growth” 08.09.2010 © SCREENPLAY 121
  115. 115. Typical business targets Quantitative • Reduce costs 1) How do we identify • Sell more the problem? • Recruit new customers 2) How do solve the • Increase awareness by XY% problem? (i.e. what • … do we do?) 3) How do we measure Qualitative if it works? • Improve image • Create an attitude • Improve perceived quality • …. 08.09.2010 © SCREENPLAY 122
  116. 116. One tool: Branding and positioning 08.09.2010 © SCREENPLAY 123
  117. 117. 8-Sep-10 124
  118. 118. Brand / 1 A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. 8-Sep-10 125
  119. 119. Denotation: Direct meaning ≈ Connotation: Indirect meaning ≈ 126
  120. 120. Connotation: Indirect meaning Better detected than described 127
  121. 121. 8-Sep-10 128
  122. 122. Definition of a brand / 2 A brand is a collection of perceptions in the mind of the consumer 8-Sep-10 130
  123. 123. Today’s topics • Who is Screenplay? • What is design? • What is strategy • Why is strategic design important? • The design process • Target groups and segmenting • Segmenting • Introduction to personas • Personas • Business targets: Branding and positioning • Touch points • Recap and outlook
  124. 124. Touch points: How to reach the customer 12h00 0h00 Lunch Bar/ Club Eating out with friends PR-Article Apéro in the Advertising Shopping at Bar at Hotel a petrol zum Kreuz station
  125. 125. Customer journey: Example airline Home Airport 1 Flight Airport 2 Destination 08/24/09 © MAKING WAVES 133
  126. 126. Customer journey Customer journey Possible touch points 08/24/09 © MAKING WAVES 134
  127. 127. Customer journey and the business perspective Customer journey Users goals Touch points Business targets Business processes 08/24/09 © MAKING WAVES 135
  128. 128. Customer journey and the business perspective Customer journey Users goals Touch points Business targets Business processes 08/24/09 © MAKING WAVES 136
  129. 129. Personas reveal touch points Fear struck Hyperactive Happy go lucky duty-voter non-voter Marit, 22 Andreas, 24, Stian, 21, from Bergen from Skarnes from Tromsø • Marketing at BI • Studies electrical • Teacher student at (2nd year Bachelor) engineering at NTNU in Høgskolen i Nesna • Fadder for 1. års- Trondheim (masters • Skibum studentene degree, 3rd year) • Plays in the band at UKA What does a typical day in their life look like?
  130. 130. The buying process Source: http://www.flickr.com/search/?q=customer%20journey&w=all 08.09.2010 138
  131. 131. Understanding the customer’s buying process Awareness Research Evaluation Selection vs. Purchase Delivery Post evaluation 08.09.2010 139
  132. 132. Combining process and channel Broadcast Direct mail Store Internet Call center Awareness Research Evaluation Purchase Delivery Post evaluation 08.09.2010 140
  133. 133. 9/8/2010 Screenplay 141
  134. 134. Possible user stories for H&M Magasin DM Web banner Search HM.com Shop 1 2 Time Ad in magazine H&M banner ad 3 Get offers by Reads article Reaches mail in magazine – HM.com googles H&M Visits the clostest 4 6 H&M store Reads about the Googler Checks out new collection in “party outfit and a newsletter outfit” accessories 5 7 Sees top in H&M banner magazine Visits H&M store 142
  135. 135. Cultural and other experiences Preparation On site Memory channel • Web • Stationary • Web • Mobile • Mobile • Print • Print Source: http://www.archimuse.com/mw2003/papers/garzotto/garzotto.html 08.09.2010 143
  136. 136. Today’s topics • Who is Screenplay? • What is design? • What is strategy • Why is strategic design important? • The design process • Target groups and segmenting • Segmenting • Introduction to personas • Personas • Business targets: Branding and positioning • Touch points • Recap and outlook
  137. 137. Recap: Analysis and design are separate phases Assignment/ Concept/ brief/… prototype/… 1. Analysis • Market and users • Business opportunities Solution • Communication and brand targets • Technology • …
  138. 138. Analysis and design are separate phases Assignment/ Concept/ Today brief/… 24.09 prototype/… 1. Analysis • Market and users • Business opportunities Solution • Communication and brand targets • …
  139. 139. http://grandburo.com/store/product.detail.php?pid=245
  140. 140. “Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value.” Philipp Kotler (Marketing guru) PAGE
  141. 141. What is strategy? A goal Mostly: Sell more, become young and trendy More rare: Increase the sale of the product by x % with young urban men …and how to reach it Young men should wear diamonds more often SIDE 149
  142. 142. Strategic design Using design, visual arts, arts, humanistic and cultural thinking, psychology etc. to support achievement of strategic business goals (e.g. making more money, raise awareness, create sympathy, ...). 150
  143. 143. Segmentation by behaviors and attitudes – example FedEx Level of preparation Desired level of personal interaction From: Mulder, Steve: The user is always right: New Riders 2007
  144. 144. 5) Decisions should be based on users 4) Knowledge about users must be actionable 3) Learning about users requires direct contact 2) You are not your user 1) Business results depend on satisfying users From: Mulder, Steve: The user is always right: New Riders 2007
  145. 145. Election & students: possible personas Fear struck Hyperactive Happy go lucky duty-voter non-voter Marit, 22 Andreas, 24, Stian, 21, from Bergen from Skarnes from Tromsø • Marketing at BI • Studies electrical • Teacher student at (2nd year Bachelor) engineering at NTNU in Høgskolen i Nesna • Fadder for 1. års- Trondheim (masters • Skibum studentene degree, 3rd year) • Plays in the band at UKA ”There doesn’t seem to be ”What? Is there an ”Is election day a public a party that fits me.” election? Excellent, that holiday? I’m off kiting.” will make for some good jokes...”
  146. 146. Definition of a brand / 2 A brand is a collection of perceptions in the mind of the consumer 8-Sep-10 154
  147. 147. Combining process and channel Broadcast Direct mail Store Internet Call center Awareness Research Evaluation Purchase Delivery Post evaluation 08.09.2010 155
  148. 148. “People use the word guru because the word charlatan is so hard to spell.” Peter Drucker 08.09.2010 156
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