Design and Systematic New Value Creation


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Design and Systematic New Value Creation, to KU School of Business, Jayhawk Consulting
by Michael Eckersley, PhD

Published in: Design, Business, Education

Design and Systematic New Value Creation

  1. 1. Design and Systematic New Value Creation Michael Eckersley, PhD September 23 June, 2011 24, 2012 Jayhawk Consulting Michael Eckersley, PhD
  2. 2. about us
  3. 3. OUR PRACTICES TOUCH RESULThuman research & products new value discovery concept consumer services development experience design strategy systems perception visualization / brands human behavior simulation environments system behavior
  4. 4. thecontext Organizations are struggling to be competitive in a dynamic global economy, to achieve sustainable growth, and find the future first. All at the same time. The challenges are significant...
  5. 5. the adaptive corporation (1985)The corporate environment has grown increasinglyunstable, accelerative, and revolutionary... Theadaptive corporation, therefore, needs a new kind ofleadership. It needs “managers of adaptation”equipped with a whole set of new, nonlinear skills. –Alvin Toffler, The Adaptive Corporation
  6. 6. sense and respond“Management is shifting from a stance ofpredicting and controlling change to one ofbuilding an organization to sense change and torespond appropriately – adaptive management”. –Christopher Meyer Monitor
  7. 7. the gap between what we areand what we need to be is large“In the archives of any decent -sized organization, anunfiltered record will show institutional life in all it’sboredom and inefficiency. Most initiatives fail. Internalcompetition trumps external goals. People are petty,whiny, and unmanageable.” –Nicholas Lemann
  8. 8. we have built a system of organizational life thatrepels human creativity, that inhibits innovation
  9. 9. Schedules Goals Budgets Margins Projections Costs Teams Clients Analysts too often lost is a sense of Vendors PRcohesion and integrated effort to Salescreate new value, not simply get Productionbetter at delivering existing value Service workers Managers Strategists Marketers Designers Engineers Administrators Regulators Auditors
  10. 10. Innovation: a social phenomenon “Innovation is a social or economic term, not a technological one, defined in terms of demand rather than supply. changing value and satisfaction obtained from resources by the consumer.” –Peter Drucker
  11. 11. the growth imperative “90% of all publicly traded companies have proved themselves unable to sustain for more than a few years a growth trajectory that creates above-average shareholder returns.” –Clayton Christensen & Michael Raynor The Innovator’s Solution© HumanCentered 2007, All Rights Reserved
  12. 12. how?the approach: create the conditions that foster organic growth, social innovation, integrative thinking, creative behavior
  13. 13. All we have is us to produce the futures we desire© HumanCentered 2007, All Rights Reserved
  14. 14. management as an art: a systematic practice, intellectual and practical –Richard Buchanan, Case Western© HumanCentered 2007, All Rights Reserved
  15. 15. so what’s design?“Everyone designs who devises courses of action aimed atchanging existing situations into preferred ones.” –Herbert Simon
  16. 16. “Design is a complex problem solving process whereby artifacts are structured to attain goals” –Herbert Simon so what’s design? products conceived functionality services programmed reliability brands organized beautycommunications developed elegance systems built profitability experiences crafted efficiency etc. engineered viability fashioned etc. etc.
  17. 17. so what is design? In most peoples vocabularies, design means veneer. Its interior decorating. Its the fabric of the curtains of the sofa. But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a human-made creation that ends up expressing itself in successive outer layers of the product or service. – Steve Jobs© HumanCentered 2007, All Rights Reserved
  18. 18. so what is design?"Design is only secondarily about prettylumpy objects, and primarily about a wholeapproach to doing business, servingcustomers, and providing value.""Design... has become central to enterprisestrategy." –Tom Peters
  19. 19. design helps here Q2-2011 Q2-2012 Q3-2013 Q1-2014 Q1-2015 OUR WORK offering offering offering offering offering offering Now Next Soon Later Who knows? 1. understanding 2. identifying patterns 3. creating concepts 4. prototyping theusers and the context and reframing the that build experiences innovations of the problem problem for users and –Patrick Whitney, ID, IIT economic value for the company
  20. 20. What is design thinking? 1. Conditioned inventiveness 2. Human-centered focus 3. Environment-centered concern 4. Ability to visualize 5. Tempered optimism 6. Bias for adaptivity 7. Predisposition toward multi-functionality 8. Systemic vision 9. View of the generalist 10.Ability to use language as a tool 11.Affinity for teamwork 12.Facility for avoiding the necessity of choice 13.Self-governing practicality 14.Ability to work systematically with qualitative information –Charles Owen, IIT© HumanCentered 2007, All Rights Reserved
  21. 21.© HumanCentered 2004, All Rights Reserved
  22. 22. © HumanCentered 2004, All Rights Reserved
  23. 23. We know how to engineer almost anything The harder problem today is knowing what to innovate our task: bring decisions about user experience into the early stages of development. Align strategic benefit with the consumer value© HumanCentered 2004, All Rights Reserved
  24. 24. the conventionalbusiness approach create a develop sell them to business offerings customers (predict & provide) > build the bridge > deeplya human-centered develop build a understand design approach concepts & business users/ offerings around them (learn & respond) contexts adapted from Vijay Kumar, IIT
  25. 25. Sources of design innovation+4 top-down High Search: global innovations+3 environmental & market factors macro economic+2 market/industry+1 organizational 0 “street-level” issues & operations physical/biological-1 socio-cultural-2 Deep Search: psychological human-3 factors spiritual bottom-up-4 innovations Learning Learning Cycle 0 (time) Cycle 1
  26. 26. Jobs That People Hire Online Banks To Do Retail and Business Banking 2010 A cted eavil y reda Product development overview tio n is h iality In forma f con fident for s ake o28
  27. 27. Design and Systematic New Value Creation Michael Eckersley, PhD September 24, 2012 Jayhawk Consulting