Design Thinking: How To Transform Your Organization by Matthew Holloway at SVPMA Monthly Event June 2006

1. the design services team
How SAP is using design thinking to change its DNA
Matthew Holloway
Vice President, Design Services Team
Office of the CEO
13 June 2006
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2. SAP CONFIDENTIAL DST
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3. “companies are accelerating efforts to change
their cultures, foster innovation, and serve
customers more effectively. Innovation, or
"design thinking," is, we believe, something
truly important and enduring”
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4. “
The ultimate defense against complexity
David Gelernter
Professor of Computer Science, Yale
Simplicity is the ultimate
sophistication.
Leonardo da Vinci
Design is a way of changing life
and influencing the future
Sir Ernest Hall
Pianist, Entrepreneur, and Philanthropist
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6. Design Services Team
Corporate Strategy Management
Chairman of the Supervisory Board HASSO
Corporate Consulting Team
Office of the CEO HENNING
Research Biz. Process Renovation Mgmt
& Breakthr. Global Svc CSO
Product Production
Innovation & Support
PETER SHAI CLAUS GERHARD LÉO Top Talent Management
Finance & Administration
WERNER
Human Resources & Processes Global Communications
CLAUS
Global IP
Global Internal Audit
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7. 
Accelerate adoption of Design Thinking as
the process for innovation and development
of internal and external SAP products and
services in all areas of the SAP Value Chain.
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8. Agent for Change
DST
Design
Services
Team
Generative
Sustaining
Traditional
Design
Teams
Functional Design
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9. design
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10. why design thinking?
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11. so what?
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12. Design Thinking
A Focus on Customers/Users.
Broad, Multi-Disciplinary Influences.
Ideation with Prototyping.
Finding Alternatives.
Wicked Problems.
Emotion.
No more “so what?”
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14. Must do: Best Practices and To Win: Differentiation and
Continuous Innovation Breakthrough Innovation
Left Brain Says: Right Brain Says:
“These crazy guys will never “If we don’t change now it will be
deliver a product” too late”
“Give me the budget and I will “We have to stop living in the past
deliver whatever you want” regardless of the success we had”
“We have to concentrate on what “New things are possible, we only
we are good at” have to have the will to want
them”
“The new ideas are interesting but
we don’t have the time or “There are better ways to do it”
necessity”
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15. Innovation = Invention x Execution
Validity Reliability
from “Innovation by Design” by Gerard H. Gaynor
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16. Validity vs. Reliability
• Produces the right answer • Produces consistent and
for the current context predictable results over and over
• One must consider a wide • Requires a reduced number of
array of relevant variables variables considered
• Substantiation is based on • Uses quantitative, bias-free
future events measurement
• Uses inductive, deductive • Uses inductive & deductive logic
logic and abductive logic
From “Validity vs. Reliability, Implications for Management” by Roger Martin
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18. • Does the solution • Can we afford it?
show empathy for • Does it make me
end-users? more profitable?
• Is this the simplest • Do we have the
solution that gets skills?
the job done? • What is my ROI?
desirability viability
• Is it elegant?
human needs business needs
• Is it useful?
feasibility
technical needs
• How quickly can I configure the solution to suit my needs?
• Is the solution easy to maintain?
• Is it consistent with my current system landscape?
• Can the solution be easily supported?
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19. Design
Scope Project Interview & Identify Needs, Develop iterative Deliver a Work with
Understand
& define Observe
Observe Synthesis
Motivations & Prototype
prototype to Implement
Development to
What
objectives and End Users in Ideas for Prototypes and Solution build the final
outcomes their work Solutions test with Users Development design
place Assess &
Refine
Project Plan Results of the Needs & Rough Low-fidelity High-Fidelity
Results
Resources Research, Motivations Prototypes Prototypes prototypes
Artifacts, User profiles Feedback from Feedback from and/or design
Pictures Use cases users & users & specifications
stakeholders stakeholders
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20. Pe
cts o ple
t ifa
Ar
s
itie
Go
ti v
als
Ac
Step 1: Explore the
problem space through
Interviews
Market
fact finding and then
assemble a 360º view.
Ob
ure
se
lt
rva
Cu
tio
n
Co o ns
m pe a ti
ti tio niz
ga
n Or
Objectives
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22. Pe
cts o p le
t ifa
Ar
Desirability
s
itie
Go
ti v
als
Step 2: Reduce the solution
Ac
space through decisions that
Interviews
Market
balance desirability,
y
Via
ilit
viability, and feasibility.
ib
b
as
ilit
Ob
ure
Fe
y
se
lt
rva
Cu
tio
n
Co o ns
mp a ti
eti
tio niz
ga
n Or
Objectives
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23. The Rules:
1. One Conversation
2. Stay Focused
3. Encourage Wild Ideas
4. Build on the Ideas of Others
5. Defer Judgment
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24. Pe
ts o p le
tifac
Ar
Desirability
s
itie
Go
ti v
als
Ac
Step 3: Create relevant
Interviews
prototypes quickly and
Market
Prototypes
iteratively.
ity
Via
l
ibi
b
as
ilit
Ob
ure
Fe
y
se
lt
rva
Cu
t io
n
Co o ns
m pe a ti
titi niz
on ga
Or
Objectives
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25. Sketches Mock-ups Wire Frames HTML Flash Functional Code
PROTOTYPES:
• Must evoke an emotional response
• Must be technically relevant
• Fail early, fail cheaply
• Low Effort
Communicate the vision High Effort
Low Fidelity High Fidelity
• Short Cycle model for realization Long Cycle
Become a
Generic Feedback Specific Feedback
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26. Multiple iterations continue the The prototype must communicate
dialog between the design team design intent to both internal and
and the end-users external constituencies
s
en
er
d
tn
us
g
r
se
Prototypes are effective for
pa
tin
rv er
s
ke
ic
ar
es
m
communicating intent &
Design
Rapid End
Packaging the
User
feedback with everyone.
design for
Feedback sharing
t
en
Prototype
cu
m
sa
st
op
le
o
er r’s
s
m
l
ve
er
om e
de
s
st m
s
cu sto
cu
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27. Design intent must not be lost Some of the most valuable
when design models are converted feedback to inform future designs
to engineering models is only received after the solution
has been released to the market
Handing off the design to
engineering and walking away does In re-design, the hardest part is to
not work! leave the beaten track
Design must remain engaged and Existing solutions must not be
empowered to weigh-in on every allowed to dominate the redesign
significant engineering trade-off discussions.
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28. Designers & MBA’s
Creativity & Innovation
Empathy & Passion
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?
…ask ‘em if you got ‘em
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