Ten observations, provocations, and questions on design and innovation - presentation by Tim Leberecht, frog design, at Re:Publica, Berlin, April 15, 2010
Ten observations, provocations, and questions on design and innovation - presentation by Tim Leberecht, frog design, at Re:Publica, Berlin, April 15, 2010
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
recognize latent or unarticulated customer needs.”
Sustainability “We got lucky once or twice. How do we repeat our market success year
after year?”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
trial and error.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
Customer Insight recognize latent or unarticulated customer and engineering but fail to
“Our product ideas are driven by science needs.”
recognize latent or unarticulated customer needs.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
Customer Insight recognize latent or unarticulated customer and engineering but fail to
“Our product ideas are driven by science needs.”
recognize latent or unarticulated customer needs.”
Sustainability “We got lucky once or twice. How do we repeat our market success year
Sustainability “We got lucky once or twice. How do we repeat our market success year
after year?”
after year?”
INNOVATION CATEGORIES
Sustaining (Evolve) Breakout (Expand) Disruptive (Envision)
$ $ $
0 1 ^
2 3 4 5 6 7 0 1 2 3 ^
4 5 6 7 0 1 2 3 4 5 ^
6 7
Go/No-Go Go/No-Go Go/No-Go
(Director Level)
years (VP/SVP Level)
years (CEO/Board Level)
years
Short -Term Advantage Near-Term Advantage Long-Term Advantage
Sustain product life with incremental Create new products within an existing Innovate new to the world products that
enhancements and consumer benefits. product category that leverage high value lead the creation of new markets or
Since product categories exist, sustaining benefits for consumers. industries. Market acceptance may be
products are easily accepted by the market. The greater benefits of the product and the slower to gain as multiple industry
On the other hand profitability can diminish fact that it is within a know category drives standards compete for dominance.
quickly due to ease of imitation . rapid short-term growth. These products are a long term investment
These products are low risk bets with a high These product are higher risks bets with with high potential returns over the long
probability of short term returns. higher yet diminishing returns. term. Other benefits include market
dominance & strong competitive position.
Product Level Innovation Category Level Innovations Industry Level Innovation
Competitive Advantage: 1-3 years Competitive Advantage: 3-5 years Competitive Advantage : 5-7 years
Innovation means creating change
instead of just reacting to it.
“If you don’t get better, you get worse.”
My dad
Most products look alike
Good enough Excellent
Innovation means doing
what no one has done before.
Innovation means doing
what no one has done before.
what no one else would dare doing.
Intuitive bets
“It’s such a fine line between stupid and clever.”
David St. Hubbins, lead singer of Spinal Tap
3
Design (Thinking)?
Innovation means behavioral change.
CUSTOMER JOURNEY
Design:
Humanizes technology
Creates simple solutions to complex problems
Changes the meaning of things
Design (Thinking)?
Strives to keep bad things Strives to make good
from happening things happen.
Manager vs. Designer
We don't teach executives to think like
designers. We help them bring innovative
products and services to market.
Doing
Thinking
“The head and hand divided” (R. Sennett)
has risks…
“A map is not the territory.”
Alfred Korzybski, 1931
Technology
People
Material
= Processes
Politics
Money
Actual
materials
4
Do you fail?
"Ever tried. Ever failed. No matter.
Try again. Fail again. Fail better.“
Samuel Beckett
| Project Masiluleke
5
Do you have an
innovation process?
“We don’t have an innovation process.
We hire good people.”
Steve Jobs
“Design is too important to
be left to designers.”
Raymond Loewy
Business Analyst
Digital Media Designer
Strategist
Anthropologist
Artists
Mechanical Engineer
Software Developer
Architects
Ethnographer
Industrial Designer
Writer
Cross-over thinking (and doing)
Role Matrix
ITERATIVE
SYNERGISTIC
6
What about the customer?
…but it is not dead…
Nothing has changed
…but it is not dead…
Everything has changed!
“In the old days, brands
wanted everybody to pay
attention to them.
Now brands need to pay
attention to everybody else.”
Umair Haque
All products and services will be SOCIAL
Where?
Social networks
What?
Social content
How?
Social publishing Social search
Social gaming Social shopping
What for?
Social impact Social currency
“Open it up and it will design itself.”
Norman Lewis
76
DATA is the bank…
MEANING is the currency…
“Create more value than you capture.”
Tim O’Reilly
Social
Meaning
Value Innovation
Chief Meaning Officer
checklist
SMALL DRAMATIC SOCIAL CONVERSATIONAL PROVOCATIVE RESPONSIBLE
Micro Making sense Connecting Listening Making you think Doing good
Customizable Cohesion Community Empathy Disruption Political
Relevant Convergence Belonging Adaptive Divergence Socially responsible
Actionable Morale Identity Changing messages Deconstruction Eco-friendly
Eye-to-eye Consistency Like-minded Two-way Surprise Ethical
Direct Imagination Affinity Let go of control Shock Human rights
Instant Entertainment New people Open Unexpected Values
Accessible Cultural relevance Status Respect Unlikely Family
Sharable Characters Compassion Flow Challenging Nation
Atomized Suspense Fun Topical status quo Common Good
Comedy Love Point-of-view Unique Earth
Tragedy Friendship Attention-grabbing
Identification Hobbies Different
Fans In your face
7
Convergence?
Media
Energy Entertainment
Banking Telco
CONSUMER
EXPERIENCE
Auto Retail
Wellness eCommerce
Mobile
Social Personal
BRAND
EXPERIENCE
Instant/
Gaming
Real-time
Location-
Augmented
based
BUSINESS
TECHNOLOGY
Mobile
Social Personal
BRAND
EXPERIENCE
Instant/
Gaming
Real-time
Location-
Augmented
based
DESIGN
BUSINESS
TECHNOLOGY
Media
Energy Entertainment
Banking Telco
CONSUMER
EXPERIENCE
Auto Retail
Wellness eCommerce
DESIGN
8
Does it need to be simple?
Yes
(it’s that simple)
Complex ecosystems
Feature creep
“Perfection is achieved, not when there is
nothing more to add, but when there is nothing
left to take away.”
Antoine de Saint-Exupery
9
The product is the story.
The story is the product.
“Because the purpose of business is to
create a customer, the business enterprise
has two—and only two—basic functions:
marketing and innovation.”
Peter Drucker
Disrupt schemata
Blend two concepts
10
You.
“Never doubt that a small group of thoughtful,
committed people can change the world.
In fact, it is the only thing that ever has.”
Margaret Mead
Brandon Evans
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