How design innovation can transform business

HOW DESIGN INNOVATION CAN TRANSFORM BUSINESS SIX KEY PRINCIPLES PRESENTATION AT FORUM DE LA INNOVACIO ’07 OCT 18, BARCELONA, ESPANA VIJAY KUMAR INSITUTE OF DESIGN ILLINOIS INSTITUTE OF TECHNOLOGY CHICAGO

INNOVATION LANDSCAPE IS CHANGING E STRATEGY OR EF Focus: Business B W NE ENGINEERING Focus: Components Focus: INTEGRATION BRAND + Technology Focus: Marketing + Process + Product + Service + Brand PRODUCT DESIGN + Experience DESIGN Focus: Products INNOVATION © VIJAY KUMAR and PATRICK WHITNEY | INSTITUTE OF DESIGN | ILLINOIS INSTITUTE OF TECHNOLOGY

COMPANIES ARE RESPONDING L S UA CU US FO NEW BUSINESS TECHNOLOGY OPPORTUNITY POSSIBILITY DESIGN INNOVATION Driven by a deep understanding of users © VIJAY KUMAR and PATRICK WHITNEY | INSTITUTE OF DESIGN | ILLINOIS INSTITUTE OF TECHNOLOGY

DESIGN INNOVATION AS A STRATEGY WINS APPLE GOOGLE SOUTHWEST TOYOTA IDEO GE IKEA MICROSOFT DAIMLERCHRYSLER P&G HEWLETT PACKARD 3M NIKE WALT DISNEY BP IBM RESEARCH IN MOTION SONY AT&T WAL-MART CITIGROUP HONDA VERIZON NOKIA PHILIPS STARBUCKS NINTENDO TARGET COSTCO BMW VOLKSWAGEN SAMSUNG PFIZER VIRGIN BEST BUY INTEL JOHNSON & JOHNSON AMAZON AMGEN BOEING MERCK DELL NEWS CORP GENENTECH MCDONALD’S EBAY LG ELECTRONICS CICSO EXXON MOBILE MOTOROLA

What PRINCIPLES can we learn from these successful innovations? 1 Build innovations around people’s EXPERIENCES 2 Think of innovations as PLATFORMS not just products 3 Adopt an early INNOVATION PLANNING process 4 Use structured METHODS and TOOLS 5 Integrate DESIGN and BUSINESS 6 Cultivate an INNOVATION CULTURE within organizations © VIJAY KUMAR and PATRICK WHITNEY | INSTITUTE OF DESIGN | ILLINOIS INSTITUTE OF TECHNOLOGY

1 Build innovations around people’s EXPERIENCES

NOT JUST ANY CAR IT’S FUN … IT’S MINE … IT’S COOL … I LOVE IT …

NOT JUST SHOES RUNNING Materials Sensors in shoes I-Pod recorder NIKE Progress tracking Online tools Route mapping Social networks Photo from Nike website

PHYSICAL COGNITIVE CULTURAL SOCIAL EMOTIONAL 1 Build innovations around people’s EXPERIENCES © VIJAY KUMAR and PATRICK WHITNEY | INSTITUTE OF DESIGN | ILLINOIS INSTITUTE OF TECHNOLOGY

PHYSICAL

OXO GOOD GRIPS

NOW S CT ODU PR 0 35 AN TH RE MO FROM 79 CENT VERNACULAR PRODUCT TO $275,000,000 COMPANY

SELF-CHECKOUT IN RETAIL

http://www.flickr.com/photos/tackytophat/425720403/ http://www.stylehive.com/bookmark/26275 http://www.flickr.com/photo_zoom.gne?id=92115194&size=oWHITNEY | INSTITUTE OF DESIGN | http://www.phonefashions.com/phone/cart/scripts/default.asp © VIJAY KUMAR and PATRICK ILLINOIS INSTITUTE OF TECHNOLOGY

THINKERING SPACES Digital and physical spaces for kids to share creative writing ID IIT Project lead by Prof. Dale Fahnstrom and Prof. Greg Prygrocki for MacArthur Foundation

2 Think of innovations as PLATFORMS not just products

SERVICE EXPERIENCE iTUNES iPOD MUSIC SHARING SYSTEM CHANNEL ACCESSORIES APPLE STORE NETWORKING BIZ MODEL BRAND +iTUNES +BOSE DOWNLOADS iPOD Promotion Images from Apple website

Principle 2 – Ten Types TEN TYPES OF INNOVATIONS ©Doblin iPOD as a Platform Business Networking Enabling Core Product Product Service Channel Brand Customer model process process performance system experience Finance 2 1 3 4 Process. Offering 6 5 7 Delivery 8 9 10

3 Adopt an early INNOVATION PLANNING process

FRONT-END INNOVATION PLANNING DEVELOP LAUNCH SUSTAIN INNOVATION TIMELINE

FRONT-END INNOVATION PLANNING Analysis Synthesis Abstract Frame Explore Make Insights Concepts Plans Know Hypothesis Make Research Implement Prototype Pilot Launch Know Know Realize Context Users Offerings Real

3 PROCESS IS NON-LINEAR Sense Know Know Frame Explore Make Realize Intent Users Context Insights Concepts Plans Offerings

4 Use structured METHODS and TOOLS

INNOVATION TOOLKIT Sense Know Know Frame Explore Make Realize Intent Users Context Insights Concepts Plans Offerings trend map research plan context map user data concept strategic behavioral analysis definition roadmap prototype diagnostic video/photo eras map system research context data concept innovation concept value web analysis matrix, map brief prototype concept disposable space camera study innovation user insights concept strategic plan pilot and map tool systemizer launch plan ethnographic tactical plan interview insight scenario plan change plan Matrix business user insights concept case field-book experience manager model five human factors system simulation S experience map analytic WN ECT O OJ frameworks R OU PR Y TO D AD IT R ILO TA

Sense Know Know Frame Explore Make Realize Intent Users Context Insights Concepts Plans Offerings trend map research plan context map user data 5 concept strategic behavioral analysis definition roadmap prototype diagnostic video/photo eras map system research context data concept innovation concept value web analysis matrix, map brief prototype concept 1 disposable space camera study innovation map 3 user insights tool concept systemizer strategic plan pilot and launch plan 2 ethnographic tactical plan interview 4 insight Matrix scenario plan business change plan user insights concept case field-book experience manager model five human factors system simulation experience map analytic frameworks

1 disposable PROJECT COOKING AT HOME camera study 2 ethnographic interview 3 user insights tool 4 insight matrix 5 concept definition CHICAGO MUMBAI USA INDIA CAPETOWN SOUTH AFRICA

1 disposable Distribute CAMERAS to families camera study along with a set of GUIDELINES 2 ethnographic interview for taking pictures 3 user insights tool 4 insight matrix POEMS 5 concept definition Objects Messages People Environments Services

1 disposable Families take pictures camera study 2 ethnographic interview 3 user insights tool 4 insight matrix 5 concept definition ENVIRONMENTS PEOPLE SERVICES POEMS OBJECTS MESSAGES

1 disposable camera study Talk to people about the pictures they took 2 ethnographic interview 3 user insights tool 4 insight matrix 5 concept definition Take notes in structured field notebooks

1 disposable Organize pictures and INSIGHTS in the USER INSIGHTS TOOL camera study 2 ethnographic interview 3 user insights tool 4 insight matrix 5 concept definition PROJECT COOKING AT HOME USER INSIGHTS TOOL Gather Tag Search Cluster Pattern Criteria Concept OBSERVATION DESCRIPTION INSIGHT Cooking and Watching TV Mother watches TV Watching TV while while cooking to cooking is fun and entertain herself. She informative. often watches cooking shows to get recipe Individually serving ideas. food to children helps control portion size. She fills each child’s plate and serves it. OBSERVER Ben Joseph DATE Dec 08, 2005 TIME Evening CITY Chicago COUNTRY USA

1 disposable COMPARE activities camera study 2 ethnographic interview 3 user insights tool 4 insight matrix 5 concept definition MUMBAI CHICAGO CAPE TOWN

1 disposable SEARCH and COMPARE insights in UIT camera study 2 ethnographic interview 3 user insights tool 4 insight matrix 5 concept definition PROJECT COOKING AT HOME USER INSIGHTS TOOL Gather Tag Search Cluster Pattern Criteria Concept SEARCH TERMS: SEARCH TERMS CHICAGO, Mother, Child, Eating MUMBAI, Mother, Child, Eating Watching TV while Feeding family hot, cooking is fun and fresh food is informative considered part of healthy life Family enjoys Feeding children cooking together happens anywhere in the house Trips to Starbucks Bed becomes a place are a way to connect to have a comfortable with family. family dinner.

1 disposable Focus on the INSIGHTS to find patterns camera study 2 ethnographic interview 3 user insights tool 4 insight matrix 1. Cooking is a time to spend time with kids. 5 concept 2. Families often spend quality time together after dinner 3. Floor cleaned daily for baby’s play and snacking definition 4. Mom lets baby get messy with dinner 5. Baby needs eye contact with mom while he eats 6. Mom can do other things while baby is in swing 7. Shopping with babies is challenging. 8. Baby dinner chair is mobile for family’s convenience 9. Couple shares responsibility for baby. 10. Family eats in different rooms at different times 11. All family members eat different things at dinner 12. Couples take turns cooking 13. When cooking for one, simple dishes are made 14. Children are able to prepare food for themselves …. …. TS …. H …. SIG …. …. IN …. 99 …. …. …. 92. Kids care about the taste of vitamins 93. Family takes vitamins with breakfast 94. People change their diet while training 95. Mom likes to feed kids healthy snacks 96. Mom carries healthy snacks to avoid fast food 97. People reward themselves with unhealthy food 98. Kids’ snacking rules are more lenient away from home 99. Sweets are used as a reward.

1 disposable INSIGHT MATRIX tool shows CLUSTERS of insights camera study 2 ethnographic interview 3 user insights 2. Families often spend quality time together after dinn 2. Families often spend quality time together after dinn 2. Families often spend quality time together after dinn 2. Families often spend quality time together after dinn 98. Kids snacking rules are more lenient away from hom 98. Kids snacking rules are more lenient away from hom 98. Kids snacking rules are more lenient away from hom 98. Kids snacking rules are more lenient away from hom 98. Kids snacking rules are more lenient away from hom 11. All family members eat different things at dinner 14. Children are able to prepare food for themselves 11. All family members eat different things at dinner 14. Children are able to prepare food for themselves 11. All family members eat different things at dinner 14. Children are able to prepare food for themselves 11. All family members eat different things at dinner 14. Children are able to prepare food for themselves 11. All family members eat different things at dinner 14. Children are able to prepare food for themselves 8. Baby dinner chair is mobile for familyconvenience 8. Baby dinner chair is mobile for familyconvenience 8. Baby dinner chair is mobile for familyconvenience 8. Baby dinner chair is mobile for familyconvenience 10. Family eats in different rooms at different times 10. Family eats in different rooms at different times 10. Family eats in different rooms at different times 10. Family eats in different rooms at different times 5. Baby needs eye contact with mom while he eats 5. Baby needs eye contact with mom while he eats 5. Baby needs eye contact with mom while he eats 5. Baby needs eye contact with mom while he eats tool 97. People reward themselves with unhealthy food 97. People reward themselves with unhealthy food 97. People reward themselves with unhealthy food 97. People reward themselves with unhealthy food 97. People reward themselves with unhealthy food 6. Mom can do other things while baby is in swing 6. Mom can do other things while baby is in swing 6. Mom can do other things while baby is in swing 6. Mom can do other things while baby is in swing 13. When cooking for one, simple dishes are made 13. When cooking for one, simple dishes are made 13. When cooking for one, simple dishes are made 13. When cooking for one, simple dishes are made 13. When cooking for one, simple dishes are made 96. Mom carries healthy snacks to avoid fast food 96. Mom carries healthy snacks to avoid fast food 96. Mom carries healthy snacks to avoid fast food 96. Mom carries healthy snacks to avoid fast food 96. Mom carries healthy snacks to avoid fast food 3. Floor cleaned daily for baby play and snacking 3. Floor cleaned daily for baby play and snacking 3. Floor cleaned daily for baby play and snacking 3. Floor cleaned daily for baby play and snacking 1. Cooking is a time to spend time with kids. 1. Cooking is a time to spend time with kids. 1. Cooking is a time to spend time with kids. 1. Cooking is a time to spend time with kids. 94. People change their diet while training 94. People change their diet while training 94. People change their diet while training 94. People change their diet while training 94. People change their diet while training 95. Mom likes to feed kids healthy snacks 95. Mom likes to feed kids healthy snacks 95. Mom likes to feed kids healthy snacks 95. Mom likes to feed kids healthy snacks 95. Mom likes to feed kids healthy snacks 9. Couple shares responsibility for baby. 9. Couple shares responsibility for baby. 9. Couple shares responsibility for baby. 9. Couple shares responsibility for baby. 92. Kids care about the taste of vitamins 92. Kids care about the taste of vitamins 92. Kids care about the taste of vitamins 92. Kids care about the taste of vitamins 92. Kids care about the taste of vitamins 4. Mom lets baby get messy with dinner 4. Mom lets baby get messy with dinner 4. Mom lets baby get messy with dinner 4. Mom lets baby get messy with dinner 93. Family takes vitamins with breakfast 93. Family takes vitamins with breakfast 93. Family takes vitamins with breakfast 93. Family takes vitamins with breakfast 93. Family takes vitamins with breakfast 7. Shopping with babies is challenging. 7. Shopping with babies is challenging. 7. Shopping with babies is challenging. 7. Shopping with babies is challenging. ’s ’s ’s ’s 4 insight 99 INSIGHTS 99. Sweets are used as a reward. 99. Sweets are used as a reward. 99. Sweets are used as a reward. 99. Sweets are used as a reward. 99. Sweets are used as a reward. 12. Couples take turns cooking 12. Couples take turns cooking 12. Couples take turns cooking 12. Couples take turns cooking 12. Couples take turns cooking ’s ’s ’s ’s matrix 5 concept ’ ’ ’ ’ ’ definition 1. Cooking is a time to spend time with kids. 2. Families often spend quality time together after dinn 3. Floor cleaned daily for baby play and snacking ’s 4. Mom lets baby get messy with dinner 5. Baby needs eye contact with mom while he eats 6. Mom can do other things while baby is in swing 7. Shopping with babies is challenging. 1 8. Baby dinner chair is mobile for familyconvenience ’s 9. Couple shares responsibility for baby. 10. Family eats in different rooms at different times 11. All family members eat different things at dinner 12. Couples take turns cooking 13. When cooking for one, simple dishes are made 14. Children are able to prepare food for themselves 92. Kids care about the taste of vitamins 93. Family takes vitamins with breakfast 94. People change their diet while training 95. Mom likes to feed kids healthy snacks 96. Mom carries healthy snacks to avoid fast food 97. People reward themselves with unhealthy food 98. Kids snacking rules are more lenient away from hom ’ 99. Sweets are used as a reward. 1. Cooking is a time to spend time with kids. 2. Families often spend quality time together after dinn 3. Floor cleaned daily for baby play and snacking ’s 4. Mom lets baby get messy with dinner 2 5. Baby needs eye contact with mom while he eats 6. Mom can do other things while baby is in swing 7. Shopping with babies is challenging. 8. Baby dinner chair is mobile for familyconvenience ’s 9. Couple shares responsibility for baby. 10. Family eats in different rooms at different times 11. All family members eat different things at dinner 12. Couples take turns cooking 13. When cooking for one, simple dishes are made 14. Children are able to prepare food for themselves 99 INSIGHTS 92. Kids care about the taste of vitamins 93. Family takes vitamins with breakfast 3 94. People change their diet while training 95. Mom likes to feed kids healthy snacks 96. Mom carries healthy snacks to avoid fast food 97. People reward themselves with unhealthy food 98. Kids snacking rules are more lenient away from hom ’ 99. Sweets are used as a reward. 4 1. Cooking is a time to spend time with kids. 2. Families often spend quality time together after dinn 3. Floor cleaned daily for baby play and snacking ’s 4. Mom lets baby get messy with dinner 5. Baby needs eye contact with mom while he eats 6. Mom can do other things while baby is in swing 5 7. Shopping with babies is challenging. 8. Baby dinner chair is mobile for familyconvenience ’s 9. Couple shares responsibility for baby. 10. Family eats in different rooms at different times 11. All family members eat different things at dinner 12. Couples take turns cooking 6 13. When cooking for one, simple dishes are made 14. Children are able to prepare food for themselves 92. Kids care about the taste of vitamins 93. Family takes vitamins with breakfast 94. People change their diet while training 95. Mom likes to feed kids healthy snacks 96. Mom carries healthy snacks to avoid fast food 97. People reward themselves with unhealthy food 7 98. Kids snacking rules are more lenient away from hom ’ 99. Sweets are used as a reward. 1. Cooking is a time to spend time with kids. 2. Families often spend quality time together after dinn 3. Floor cleaned daily for baby play and snacking ’s 4. Mom lets baby get messy with dinner 5. Baby needs eye contact with mom while he eats 6. Mom can do other things while baby is in swing 7. Shopping with babies is challenging. 8 8. Baby dinner chair is mobile for familyconvenience ’s 9. Couple shares responsibility for baby. 10. Family eats in different rooms at different times 11. All family members eat different things at dinner 12. Couples take turns cooking 13. When cooking for one, simple dishes are made 14. Children are able to prepare food for themselves 92. Kids care about the taste of vitamins 93. Family takes vitamins with breakfast 94. People change their diet while training 95. Mom likes to feed kids healthy snacks 96. Mom carries healthy snacks to avoid fast food 97. People reward themselves with unhealthy food 98. Kids snacking rules are more lenient away from hom ’ 99. Sweets are used as a reward. 9 11. All family members eat different things at dinner 9 CLUSTERS 12. Couples take turns cooking 13. When cooking for one, simple dishes are made 14. Children are able to prepare food for themselves 92. Kids care about the taste of vitamins 93. Family takes vitamins with breakfast 94. People change their diet while training 95. Mom likes to feed kids healthy snacks 96. Mom carries healthy snacks to avoid fast food 97. People reward themselves with unhealthy food 98. Kids snacking rules are more lenient away from hom ’ 99. Sweets are used as a reward.

1 disposable Define clusters and create CRITERIA camera study 2 ethnographic interview 3 user insights tool 4 insight matrix 5 concept definition 1 Enhance social relations 2 Create shared experiences 3 Support emotional upkeep 4 Enhance pet relations 5 Empower Children Show long-term benefits 6 Make shopping entertaining 7 Customize mobile eating 8 Support healthy living 9

1 disposable camera study 2 ethnographic INSIGHTS interview CLUSTERS CONCEPTS 3 user insights tool CRITERIA 4 insight matrix 5 concept definition

5 Integrate DESIGN and BUSINESS

N RIVE S-D NES SI BU 1 2 3 IDENTIFY CREATE FIT THEM TO BUSINESS CONCEPTS USERS CONNECT N VE RI N-D IG ES D 3 2 1 UNDERSTAND CREATE BUILD USERS CONCEPTS BUSINESS

6 Cultivate an INNOVATION CULTURE within organizations © VIJAY KUMAR and PATRICK WHITNEY | INSTITUTE OF DESIGN | ILLINOIS INSTITUTE OF TECHNOLOGY

TECHNOLOGIST ENGINEER STRATEGIST MANAGER WHAT ISTO NEED THE MARKETER CREATE A NEXT SHARED INNOVATION ? SPACE FOR INNOVATION DESIGNER ETHNOGRAPHER ER TOM Y C U S U N IT M COM EOPLE P

DESIGNER PLANNER RESEARCHER STRATEGIST USER MANAGER USER ENGINEER ETHNOGRAPHER a RESEARCHER in e rs c lde spa ho E tak TIV e s all RA ag ABO e g En LL CO

THANKS VIJAY KUMAR INSITUTE OF DESIGN ILLINOIS INSTITUTE OF TECHNOLOGY 350 N LASALLE STREET CHICAGO, ILLINOIS 60610, USA vijay@id.iit.edu +1 312 595 4900 school general +1 312 595 4919 school direct +1 312 906 8545 vijay consulting +1 630 251 2452 vijay mobile

How design innovation can transform business

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