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Using Service Design Tools as Frameworks to Generate Business Ideas
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Using Service Design Tools as Frameworks to Generate Business Ideas

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My conference presentation at IEEE 2013 Tsinghua Design Management Symposium in Shenzhen, China

My conference presentation at IEEE 2013 Tsinghua Design Management Symposium in Shenzhen, China

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Using Service Design Tools as Frameworks to Generate Business Ideas Presentation Transcript

  • 1. 1/28  
  • 2. Background: The Relationship Between Design and Business Traditional view of design: It helps shape the business offering 2/28  
  • 3. Background: The Relationship Between Design and Business Design Thinking perspective: “a discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity.” (Brown, 2008) 3/28  
  • 4. Background: The Relationship Between Design and Business Our perspective: we want to postulate the idea that design can take a role in earlier phases of the entrepreneurial process and act as an instrument to frame, generate, shape, develop, prototype and assess business ideas that could potentially become entrepreneurial opportunities. 4/28  
  • 5. •  The creation of a new venture is a wicked problem and it faces many of the same problems that a new product development process faces because of the complexity of value chains and markets: –  High levels of uncertainty and risk –  The need to deal with systemic problems related to creating an entire value chain –  The need to build new networks to develop and sustain the new businesses –  The difficulty to give incontrovertible proof of the potential success of the entrepreneurial idea. 5/28  
  • 6. •  Specifically, a key construct that has received little attention is the entrepreneurial opportunity. •  The discovery (or creation) process is sloppy and casual. Reliable and replicable methods for systematically searching, framing, developing and assessing opportunities are still undeveloped. 6/28  
  • 7. •  There are many similarities between the front-end of the entrepreneurial process and the front-end of new product development •  Both processes: –  entail the creation of a new product or service or an entirely new company in a new venture process –  both must deal with the uncertainty, non-linearity and “fuzziness” of these early stages (Barringer & Gresock, 2008) 7/28  
  • 8. •  Nevertheless, supporting tools and techniques for framing and assessing ideas are seldom shared between these two processes 8/28  
  • 9. •  Both processes have a front-end of innovation, however the front-end of the entrepreneurial process has received little attention. 9/28  
  • 10. Focus: The Front-End of Innovation of the Entrepreneurial Process •  Barringer and Gresock (2008) propose to use the Stage Gate™ model used in NPD to systematize and structure the FEI of the entrepreneurial process. However, linear processes such as the State-GateTM model are not deemed appropriate for the frontend of innovation. •  The complexity, non1. The New Concept Development linearity and “fuzziness” Figure(NCD) provides a common language Model and a visual representation to the components require special Front instruments to navigate of the p.47) End of Innovation. (Koen et al., 2001, this phase. 10/28  
  • 11. Service Design Tools •  Service Design tools were designed to tackle many of the issues the creation of a new venture poses: –  Dealing with fuzzy and ill-defined problems –  Creating a network of actors –  Framing and generating ideas –  Prototyping intangible concepts –  Assessing collaboratively feasibility and validity (Blomkvist, 2010) 11/28  
  • 12. Research Questions •  Can Service Design Tools be transferred and applied in the front-end of the entrepreneurial process? •  How would their application affect the process and/or the result? 12/28  
  • 13. The Dream:in Project •  The DREAM:IN project is an open innovation platform that utilizes design-led processes to empower communities in emerging countries. This is accomplished in the first place through ethnographic research that uncovers dreams of communities and secondly by a design driven process that transforms these dreams into social and business ventures 13/28  
  • 14. The Dream:in Project ! •  The focus of the experiment is the Believe phase, also known as “The Conclave” the students are joined by entrepreneurs, investors, experts, knowledge brokers and knowledge managers in an open innovation workshop. The objective of the workshop is to transform the dreams and aspirations of the citizens interviewed into ideas that could potentially become entrepreneurial opportunities, and perhaps even new ventures. 14/28  
  • 15. Experiment Objectives To test the effect of the use of a simplified service design toolkit during a business idea generation workshop. The workshop took place in Beijing, China on March 23 & 24, 2013 in the context of a pilot workshop for the Chinese version of the Dream:in project. 15/28  
  • 16. 1.  Selecting useful service design tools according to criteria such as ease of use, requires special know-how (or not), type of thinking it enables (divergent or convergent) and objectives of the tool. 2.  Designing the interactions that would take place during the workshop. 3.  Selecting tools according to objectives and fit to the Dream:in workshop format. 4.  Designing simplified versions of the tools that would become the frameworks to be used during the workshop. 5.  Define sample: 10 participants would be using the tools vs. 90 not using them (each day). 16/28  
  • 17. List of Tools Selected 17/28  
  • 18. Example of simplified Service Design Tools 18/28  
  • 19. Workshop Development: Day 1 •  Minor language difficulties •  Work flow was faster. Teams finished one hour before control group. •  Participants “connectedthe-dots” and spotted immediately potential conflicts. 19/28  
  • 20. Outcomes of day 1 20/28  
  • 21. Outcomes of day 1 21/28  
  • 22. Workshop Development: Day 2 Day 2: •  Participants were more motivated •  One of the groups produced a rough prototype out of their own initiative when faced the Business Model Canvas tool. 22/28  
  • 23. Outcomes of day 2 23/28  
  • 24. •  Teams using the tools: –  Detailed more their ideas –  Needed 50% less time to do all the work –  Explored the problems more before moving to a solution –  Worked more efficiently, they did not waste time deciding how to manage their time or tasks. –  Prototyped (roughly) their ideas. –  Assessed collaboratively their feasibility and validity. 24/28  
  • 25. •  It can be said the use of the tools added efficiency, allowing teams to produce more work in less time. •  Using the tools provided a sort of “checklist” keeping complexity at bay for participants. •  The tools provided a structure to “fuzzy front-end” activities •  The tools positively influenced the quality of the process and the outputs. 25/28  
  • 26. •  Design can play a role in developing business ideas, by becoming an instrument to shape their content and the design process itself. •  Design is a helpful aid in creating plausible ideas respecting constraints and boundaries (alternating divergent and convergent thinking). •  Design instruments provided a structure that clarified the “fuzziness” and the uncertainty of the front-end of the entrepreneurial process. Thus, we propose the use of design instruments as a reliable strategy to generate innovative business ideas that may become entrepreneurial opportunities 26/28  
  • 27. •  •  •  •  •  •  •  •  •  A. Bragg & M. Bragg, Developing new business ideas: the fast track to creating viable new businesses for executives and entrepreneurs, Glasgow, Scotland: Pearson Education, 2006. D. Rae, Entrepreneurship: From Opportunity to Action, New York, NY: Palgrave Macmillan, 2007. B. B. Barringer and A. R. Gresock, “Formalizing the front-end of the entrepreneurial process using the stage-gate model as a guide: An opportunity to improve entrepreneurship education and practice,” Journal of Small Business and Enterprise Development, vol. 15, no. 2, pp. 289–303, 2008. D. Rhea, “Bringing Clarity to the Fuzzy Front End. A Predictable Process for Innovation,” in Design Research. Methods and Perspectives, B. Laurel, Ed. Cambridge, MA: The MIT Press, 2003, pp. 145-154. B. Sheerin, S. Divekar, F. Alcocer, and C. Teixeira, “Design Process as Innovation Technology for Creating Value in Emerging Markets The DREAM:IN Project,” In Press, 2013. D. C. Edelson, “Design research: What we learn when we engage in design,” The Journal of the Learning Sciences, vol. 11, no. 1, pp. 105–121, 2002. V. Kumar, 101 Design Methods. A Structured Approach for Driving Innovation in Your Organization, Hoboken, NJ: John Wiley & Sons, 2013. “Prototyping Public Services. An Introduction to Using Prototyping In the Development of Public Services”, NESTA., London, UK, November 2011. J. Blomkvist, “Conceptualising Prototypes in Service Design,” Linköping University, 2010. 27/28  
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