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Innovating for the China Market

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European Chamber Innovation Conference in Shanghai

European Chamber Innovation Conference in Shanghai

Published in: Design

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  • - Thank you European Chamber for inviting me to speak

    How many of you are European/American corporations?
    How many are Mainland corporations?
    Mid-size companies?
    Govt Officials?



  • For those of you who are European/American corporations
    I guess the main reason why you are here is because of this: 1.3 Billion People Emerging China Market

    Is that right?
  • Because of the Fortune at the Bottom of the Pyramid
  • China being one of the largest Emerging Markets: Brazil, Russia, India, China: BRIC countries

    China is already No. 1 in motor vehicle, mobile phones, Internet usage

    Don’t need RMB30 Starbucks
    RMB3000 iPhones
  • - This is the World Economic Pyramid by U.N.
    - China is still 68% rural

    - China still has a lot of room for market growth, market share and consumption power, right?
  • How many of you have seen this video?
    Story of Stuff

    If you haven’t, I encourage you to go see it on Youtube

    It talks about the consumption model and why its not working
    Linear model: extracting our natural resources -> manufacturing lots of stuff -> consumption -> Disposal
    Here’s a clip


  • Short term

    7剩不做研发

    ====
    http://emba.gsm.pku.edu.cn/News/050902-4.htm

    - 中国企业R&D支出:500大企业只占销售收入的1.05%
    - 国际上公认企业研发费用不低于销售额4%

    中国企业:广告上支出= R&D 数倍我
    在吃喝玩乐上的花费远远高于我们在职工的培训和教育上的花费
    值得我们企业、企业家真正去思考的问题。

    =====
  • The market is already saturated with products as such... 10,000 cell phones
  • And these are from some major Chinese brands
  • The reason being, China’s context is very different

    We’re although around the same size as the U.S.
  • The reason being, China’s context is very different

    We’re although around the same size as the U.S.
  • China has 5 times the population
  • China has 5 times the population
  • China has 5 times the population
  • And China is at a different stage of economic development.

  • We don’t want China to go down this path
    as if we do, we’ll lose beautiful natural resources like these
    Juizaiguo, Sichuan
  • Heaven on Earth

    Natural landscapes
  • Design Thinking is holistic - you cannot change one part without changing another
    Design is always about for the people and is not Art - People-centered


  • We help both Western, China and HK companies

    From HP, P&G, BMW Designworks USA to
    Asia/China companies: OSIM, Changhong, OEM Manufacturing

    We also recently work with HKPC
    thank you for inviting us here to speak





  • No doubt, according to our current measuring stick of Revenue Growth and Margin Growth,
    the top most innovative companies are still the U.S.
    Top 20: 13

    But we cannot use the model of consumption anymore
  • What




    Innovation equals to Improving the products'competitive power + Science Improving profits company's continuous innovation


    Understanding demands + Innovative talents Understanding the market users' demands + Improving selfinnovative minds +Improving the products'competitive power+ Improving profits company's continuous innovation

  • Change thinking 思维转变
    Solve problem
    Like Chinese medicine治标治本
    短视

    U.S. – thinking 多文化
    Wenzhou, also 合拚股份 - 14个开放城市之一
    改变结构
    关停并转
    Deng Xiao Peng


    4 letter word (Chinese) fishing not fish

    互补

    HK-Mainland - Kaizor
  • User Experience is what we do
    One Apple cell phone replaced many brands

    - 12 designers
    - Apple is a much smaller company than IBM
    - User-Centered or People-Centered or User-friendly. Is there really high technology? Nope.
    - Co-creation: allow people to make money too (developers make iPhone Apps)
    - Holistic system: iTunes, iPad = all works together. So its no use copying it.
    - Its all about software, not hardware landfills
    - Does it enhance Quality of Life? Yes, it has many usages
    - Its all about Creativity and Design
  • iPhone 600,000 in China, not including fake ones,
    not available yet

    U.S. iPhone sells on average 21 iPhones each day each Apple store
    AT&T sells average 21 per week
    7 times sales

    - What does Apple do? Design
    Who makes iPhone?
    more than 30 companies on 3 continents work together (symphony conductor)

    - How many designers do you think Apple has? a dozen (12+)

    - Apple investments in R&D 3.8%: Microsoft/IBM/Sony spends 10 times more


    Anyone heard of User Experience?



    iphone use Quad-band GSM and EDGE
  • Group students into provinces (color coded)
    Group different disciplines and genders together
    Teams of 5 (12 teams = 60 people)
    Introduce themselves to each other (if do not already know)
    Each get a China map

    Exercise 1:
    Identify as a team provincial advantages in National and Global context
    Each team use creative way to “design city’s policies” to attract investments
    taking advantage of local advantages.
  • Government policies in recent 20 years have shaped:

    Economic development
    Urbanization and migration
    Growing environmental concerns
    Home ownership
    Family size
  • We study people


    Presentation for Nokia Connection https://www.nokiaconnection2007.com/, Singapore, 18th to 19th June, 2007.

    This and related research can be downloaded from http://www.janchipchase.com/publications.

    Thanks to the extended research team who helped make all this happen: Cui Yanqing, Younghee Jung, Sachi Mizobuchi, Fumiko Ichikawa, Raphael Grignani, Indri Tulusan, Julius Matovu, Lokesh Bitra, Zeenath Hasan, Thomas Stovicek, Ken Anderson, Wendy March, Per Persson, Petri Piippo, Liu Ying and Tetsuya Yamamoto.

    Photo: A space to send a text message and make a call. Protester under a Turkish flag at a pro-secular rally. Jan Chipchase, Istanbul, 2007.
  • One method is shadowing, which is quite simply following someone (with their permission). It’s a fast way to understand their context, and the range of things that they do over the course of the day.

    Photo: Jan Chipchase, Chongqing, 2007.
  • Photo: Indri Tulusan: Chongqing, 2007.
  • Photo: Jan Chipchase, Berlin 2002
  • Tokyo male N=61
    Milan male N=56
    Los Angelesmale N=66
    Beijing male N=111
    Ji Lin City male N=104

    More popular amongst older males.

    Photo: Atypical belt mounted phone, Beijing, China, 2005.
  • Photo: Where’s the Phone, Tokyo, 2005.



  • Tim Fletcher, IDSA’s Chapter VP

    China and U.S. is like
    Siamese Twins
    One can’t live without the other

    Bruce Claxton also said that
    Interconnected economy




  • - Go over training schedule
    - Today’s schedule
    - Attendance taking
    - Roles and responsibilities: GZMY documentation, design
    - Yong Xin is half the designer

  • - Go over training schedule
    - Today’s schedule
    - Attendance taking
    - Roles and responsibilities: GZMY documentation, design
    - Yong Xin is half the designer
  • - Go over training schedule
    - Today’s schedule
    - Attendance taking
    - Roles and responsibilities: GZMY documentation, design
    - Yong Xin is half the designer
  • - Go over training schedule
    - Today’s schedule
    - Attendance taking
    - Roles and responsibilities: GZMY documentation, design
    - Yong Xin is half the designer
  • - Can use same material and color of old furniture












  • Post Office Biz changing from letters to email/Fed-Ex

  • Post Office Biz changing from letters to email/Fed-Ex

  • Post Office Biz changing from letters to email/Fed-Ex


  • Personas
    - 阿叔/阿姐, Courier
    - Boy (Hotel, Clerk, 打雜)
    - Office Admin / Secretary
    - SME Boss
    - Internet Trader
    - Biz Traveller
    - Tourist: 華僑, foreigners
    - Hobbyist
    - Working Individuals
    - Housewife/Maid


  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • Personas
    - 阿叔/阿姐, Courier
    - Boy (Hotel, Clerk, 打雜)
    - Office Admin / Secretary
    - SME Boss
    - Internet Trader
    - Biz Traveller
    - Tourist: 華僑, foreigners
    - Hobbyist
    - Working Individuals
    - Housewife/Maid
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • - Designers needs to be like lawyers
    - HK is entrepreneurial
    -
  • • Observe + Interview Users
    • Research Competitors
    • Evaluate Existing
    Product/Services
    • Define Target Users
    • User Requirements
    • Business Priorities
    • Design Constrains
    • Technology Constrains
    • Interdisciplinary Process
    • Visualize Concepts/
    Story-boarding
    • Rapid Prototyping
    • Iterative Design
    • Design Refinement
    • User Testing
    • Specifications
    • Building Specifications
    • Engineering/Programming
    • Quality Assurance

  • Short term

    7剩不做研发

    ====
    http://emba.gsm.pku.edu.cn/News/050902-4.htm

    - 中国企业R&D支出:500大企业只占销售收入的1.05%
    - 国际上公认企业研发费用不低于销售额4%

    中国企业:广告上支出= R&D 数倍我
    在吃喝玩乐上的花费远远高于我们在职工的培训和教育上的花费
    值得我们企业、企业家真正去思考的问题。

    =====


  • Transcript

    • 1. Innovating for the China Market / • July 15, 2010 Elaine Ann | Kaizor Innovation, President/CEO | © Copyright 2002-2005 Kaizor Innovation Limited. 2002-2010
    • 2. Industrial Economy Innovation Economy • Bigger is Better • Small is Flexible • Consumption • People-Centered • Competition • Co-creation • Silo Parts • Holistic Ecosystem • ROI • Enhance Quality of Life • Technology • Creativity Design
    • 3. Kaizor Innovation is a strategic innovation consultancy focused on the China Market • Corporate Training • Innovation Strategy Consulting • China User Research © Copyright 2002-2010 Kaizor Innovation Limited.
    • 4. Our Clients © Copyright 2002-2010 Kaizor Innovation Limited.
    • 5. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 6. © Copyright 2002-2009 Kaizor Innovation Limited.
    • 7. Needs + Talents / Increase Improve Products Increase Profits Understanding Innovative Competitiveness + Market/User Needs Thinking + Continuous Technology Innovation © Copyright © Copyright 2002-2009 Kaizor Innovation Limited. 2002-2005 Kaizor Innovation Limited.
    • 8. Product Innovation: Dongguan Furniture Company Private and Confidential The information contained herein is confidential. For the purposes of protecting sources of information and people involved, the content herein can only be used for Kaizor Innovation purposes only. It does not constitute a circulation, an offer to sell or other distribution to other outside parties. © Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 9.   • • • • ©© Copyright 2002-2010 Kaizor Innovation Limited. Copyright 2002-2005 Kaizor Innovation Limited.
    • 10. © Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 11. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 12. © Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 13. © Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 14. © © Copyright 2002-2010 Kaizor Innovation Limited. Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2008 Kaizor Innovation Limited.
    • 15. © Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 16. © Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 17. TJ © Copyright 2002-2010 Kaizor Innovation Limited.
    • 18. © Copyright 2002-2005 Kaizor Innovation Limited. Limited. © Copyright 2002-2010 Kaizor Innovation
    • 19. © Copyright 2002-2010 Kaizor Innovation Limited. © Copyright 2002-2008 Kaizor Innovation Limited.
    • 20. © Copyright 2002-2010 Kaizor Innovation Limited. © Copyright 2002-2008 Kaizor Innovation Limited.
    • 21. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 22. © Copyright 2002-2010 Kaizor Innovation Limited. © Copyright 2002-2005 Kaizor Innovation Limited.
    • 23. Service Innovation - Hong Kong Post Office Private and Confidential The information contained herein is confidential. For the purposes of protecting sources of information and people involved, the content herein can only be used for Kaizor Innovation purposes only. It does not constitute a circulation, an offer to sell or other distribution to other outside parties. © Copyright 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 24. Seminar Training with Post Office Mgt + Staff © Copyright 2002-2010 Kaizor Innovation Limited.
    • 25. Interactive Discussions with Stakeholders © Copyright 2002-2010 Kaizor Innovation Limited.
    • 26. We Observed and Interviewed Many CustomersInnovation © Copyright 2002-2005 Kaizor Innovation Limited. 2002 © Copyright 2002-2004 Kaizor to Understand their Usage©Needs Limited. 2002-2009 2002-2004 Copyright
    • 27. Business Customers - Personas Courier SME Boss Internet Boy Trader Biz Traveller • Age: 50-60 • Age: ~ 20 • Age: 40+ • Age: ~ 20+ • Age: 30-40+ • Not good in English • Know English • Mixed personal & • Need printer/computer • Frequent user • Not decision-maker • Not decision-maker business use • Print out address labels • Send figurines/ on price/mailing on price/mailing • Random use of all • Prefer monthly billing mobile phones • Not knowing what • Not knowing what services • Desire cash/points • Visit HK 3-4 times is sent is sent • P.O. Box user reward a year • Go to P.O. daily • Go to P.O. daily • Monthly postage fee: • Buy stationary, • Frequent user • Frequent user from 000s to 0000s leave to pack, • Mail volume depends • Mail volume depends • Prefer other payment return to mail on business nature on business nature methods beyond cash • Do not often carry • Works for smaller or • Works for larger • Send goods. e.g. enough HKD$ cash more traditional co. companies Camera, electronics, • Prefer to pay both figurines, gift stamps & box together • Pack at home/office Kaizor Innovationread Chinese1 © Copyright 2002-2008 • Cannot Limited. • Want fast efficient service signage
    • 28. “I didn’t even know there is a Post Office here.” - 1st time users SOLUTION: Use Post Office Brand colors to draw attention to©Post Office’s entrance Limited. Copyright 2002-2007 Kaizor Innovation
    • 29. SOLUTION: More recognizable Post Office branded entrance © Copyright 2002-2007 Kaizor Innovation Limited.
    • 30. ISSUE:  Separate Business and Non-commercial Customers © Copyright 2002-2007 Kaizor Innovation Limited.
    • 31. SOLUTION: Conceptually separate Pay Bills and Mailing © Copyright 2002-2007 Kaizor Innovation Limited.
    • 32. ISSUE: Need a lot more counter space for small parcels processing 2002-2005 Kaizor Innovation Limited. © Copyright 2002-2007
    • 33. ISSUE: Internet Traders takes up counter space for a long period of time © Copyright 2002-2005 Kaizor Innovation Limited. 2002-2007
    • 34. Business Customers - Personas Courier SME Boss Internet Boy Trader Biz Traveller • Age: 50-60 • Age: ~ 20 • Age: 40+ • Age: ~ 20+ • Age: 30-40+ • Not good in English • Know English • Mixed personal & • Need printer/computer • Frequent user • Not decision-maker • Not decision-maker business use • Print out address labels • Send figurines/ on price/mailing on price/mailing • Random use of all • Prefer monthly billing mobile phones • Not knowing what • Not knowing what services • Desire cash/points • Visit HK 3-4 times is sent is sent • P.O. Box user reward a year • Go to P.O. daily • Go to P.O. daily • Monthly postage fee: • Buy stationary, • Frequent user • Frequent user from 000s to 0000s leave to pack, • Mail volume depends • Mail volume depends • Prefer other payment return to mail on business nature on business nature methods beyond cash • Do not often carry • Works for smaller or • Works for larger • Send goods. e.g. enough HKD$ cash more traditional co. companies Camera, electronics, • Prefer to pay both figurines, gift stamps & box together • Pack©at home/office Kaizor Innovationread Chinese1 Copyright 2002-2008 • Cannot Limited. • Want efficient service signage
    • 35. SOLUTION: Special counter to accommodate for Internet Traders © Copyright 2002-2007 Kaizor Innovation Limited.
    • 36. ISSUE: Lack of space to pack large parcels in all Post Offices © Copyright 2002-2005 Kaizor Innovation Limited. 2002-2007
    • 37. Trash Bin Stationaries Small Scale integrated in table Trolley Sizer Upper + Floor Scale SOLUTION: Island Packing Table © Copyright 2002-2007 Kaizor Innovation Limited.
    • 38. ISSUE: Counter window in-taking small parcels need to be accessible2002-2007 Kaizor Innovation Limited. © Copyright sitting down
    • 39. Indent + Scale Printers / Equipment Monitor in Table Roller Large Trolley for Small Parcels SOLUTION: Staff Counter © Copyright 2002-2007 Kaizor Innovation Limited.
    • 40. Co-creation Workshop: Staff Counter design exercise © Copyright 2002-2007 Kaizor Innovation Limited.
    • 41. Research Debrief - Co-creation © Copyright 2002-2007 Kaizor Innovation Limited. © Copyright 2002-2010 Kaizor Innovation Limited.
    • 42. User-Centered Design Process 1 RESEARCH 2 STRATEGIZE 3 DESIGN 4 IMPLEMENT Redesign Understand Products Production Customers + Services Design Concepts © Copyright 2002-2010 Kaizor Innovation Limited.
    • 43. SUMMARY Innovating the TAO Way • Harmony with Nature • Holistic Problem Solving • Human-Centered • Harmonious but Different © Copyright 2002-2010 Kaizor Innovation Limited.
    • 44. PEACE © Copyright 2002-2010 Kaizor Innovation Limited.
    • 45. Thank you www.kaizor.com