This is my presentation from the AIGA Head Heart Hand conference on October 11, 2013.

1. THE ART OF
STRATEGY
Nathan Shedroff
California College of the Arts
designmba.org
(or: What I learned in business school)

5. MAKE IT SO
Interaction Design Lessons from Science Fiction
by NATHAN SHEDROFF & CHRISTOPHER NOESSEL
foreword by Bruce Sterling
Many designers enjoy the interfaces seen in science fiction films
and television shows. Freed from the rigorous constraints of designing
for real users, sci-fi production designers develop blue-sky interfaces
that are inspiring, humorous, and even instructive. By carefully studying
these “outsider” user interfaces, designers can derive lessons that make
their real-world designs more cutting edge and successful.
“Designers who love science fiction will go bananas over Shedroff and Noessel’s delightful and
informative book on how interaction design in sci-fi movies informs interaction design in the real
world.... You will find it as useful as any design textbook, but a whole lot more fun.”
ALAN COOPER
“Father of Visual Basic” and author of The Inmates Are Running the Asylum
“Part futurist treatise, part design manual, and part cultural analysis, Make It So is a fascinating
investigation of an often-overlooked topic: how sci-fi influences the development of tomorrow’s
machine interfaces.”
ANNALEE NEWITZ
Editor, io9 blog
“Shedroff and Noessel have created one of the most thorough and insightful studies ever made
of this domain.”
MARK COLERAN
Visual designer of interfaces for movies (credits include The Bourne Identity, The Island, and Lara Croft: Tomb Raider)
“Every geek’s wet dream: a science fiction and interface design book rolled into one.”
MARIA GIUDICE
CEO and Founder, Hot Studio
www.rosenfeldmedia.com
MORE ON MAKE IT SO
www.rosenfeldmedia.com/books/science-fiction-interface/
MAKEITSObyNATHANSHEDROFF&CHRISTOPHERNOESSEL
Experience Design 1.1
a manifesto for the design of experiences
by Nathan Shedroff
product taxonomies 16
user behavior 116
100 years 22
information 42
takeaways 28
data 36
knowledge 48
subjectivity 78
consistency 96
navigation 84
product taxonomies 16
user behavior 116
experiences 4
experience taxonomies 10
100 years 22
wisdom 54
information 42
takeaways 28
data 36
knowledge 48
subjectivity 78
consistency 96
navigation 84
Design Strategy in Action
Edited by Nathan Shedroff
A publication from the MBA in Design Strategy program
California College of the Arts
2011
2008 Edition
Dictionary of
Sustainable Management

7. MBA IN DESIGN STRATEGY
MBA IN STRATEGIC FORESIGHT
MBA IN PUBLIC POLICY DESIGN

8. WHERE IS “DESIGN” ON
THE BALANCE SHEET?
ASSET
LIABILITY
OWNER’S EQUITY

9. WHERE IS “DESIGN” ON
THE BALANCE SHEET?
ASSET
LIABILITY
OWNER’S EQUITY

10. STRATEGY

11. Strategy
(Greek “στρατηγία”—stratēgia, “art of
troop leader; office of general, command,
generalship”[1])
is a high level plan to achieve one or
more goals under conditions of
uncertainty.
Strategy is also about attaining and
maintaining a position of advantage over
adversaries through the successive
exploitation of known or emergent
possibilities rather than committing to any
specific fixed plan designed at the outset.
—Wikipedia

12. “a pattern in a stream of decisions”
— Henry Mintzberg of McGill University

13. Strategic management analyzes the major
initiatives taken by a company’s top
management on behalf of owners, involving
resources and performance in internal and
external environments.[1] It entails specifying the
organization’s mission, vision and objectives,
developing policies and plans, often in terms of
projects and programs, which are designed to
achieve these objectives, and then allocating
resources to implement the policies and plans,
projects and programs. A balanced scorecard is
often used to evaluate the overall performance

14. Strategic management analyzes the major
initiatives taken by a company’s top
management on behalf of owners, involving
resources and performance in internal and
external environments.[1] It entails specifying
the organization’s mission, vision and
objectives, developing policies and plans, often
in terms of projects and programs, which are
designed to achieve these objectives, and then
allocating resources to implement the policies
and plans, projects and programs.

15. STRATEGY IS
A HIGH-LEVEL PLAN
(FOR ACTION)

16. “DESIGN IS
A PLAN FOR ACTION”
Charles Eames

17. STRATEGY IS
ABOUT CONTEXT

18. TACTIC
STRATEGY

19. TACTIC
Usability/Legibility
Aesthetics
STRATEGY

20. TACTIC
Usability/Legibility
Aesthetics
STRATEGY
Experience

21. TACTIC
Operational Effectiveness & Productivity
Products & Services (Offerings)
Features/Performance
Price
STRATEGY
Intent, Goals, Mission, Vision, & Culture
Systems
Stakeholders (employees, investors, media,
communities, etc.)

22. TACTIC
How to make, deliver, and support the best
<offering> possible
STRATEGY
What we should be in the business of
(to begin with)

23. TACTIC
How to make, deliver, and support the best
<offering> possible
STRATEGY
What we should be in the business of
(to begin with)
THE ORGANIZATION
THE PRODUCTS

27. EXPERIENCE CREATES VALUE

28. EXPERIENCE CREATES VALUE

29. EXPERIENCE CREATES VALUE

30. EXPERIENCE CREATES VALUE

31. BUSINESS MODELS
ARE DESIGNABLE

32. A B C

33. A B C
3 4 5
F F2 F8
D
6
G
1
2
E
101 44 89 10616

34. You’re holding a handbook for visionaries, game changers,
and challengers striving to defy outmoded business models
and design tomorrow’s enterprises. It’s a book for the…
written by
Alexander Osterwalder & Yves Pigneur
co-created by
An amazing crowd of 470 practitioners from 45 countries
designed by
Alan Smith, The Movement

35. The Business Model Canvas
Cost
Structure
Key
Partners
Key
Resources
Channels
Key
Activities
Value
Proposition
Customer
Relationships
Customer
Segments
Revenue
Streams
www.businessmodelgeneration.com

36. www.cca.edu/academics/graduate/design-mba/open
DELIVERYRESOURCES
OFFERPRODUCTIONORGANIZATION
DESIGN
NETWORK/
STAKEHOLDERS
FINANCE
INTENT
EXPERIENCE
BRAND
VALUE
VALUE
INTENT
EXPERIENCE
OFFER
DELIVERY
PRODUCTION
RESOURCES
NETWORK/
STAKEHOLDERSFINANCE
ORGANIZATION
DESIGN
VALUE NEEDS
TACTICS/IMPLEMENTATION
(INDUSTRY CONTEXT)
CUSTOMER
(MARKET CONTEXT)
STRATEGY
(VISION)
Customers, Media, Community, etc.)?
• How do we manage, maintain,
and grow our networks?
• Who are our competitors?
• Who will resist our success?
• Do we have unique production expertise?
• What do we already produce?
• What do others produce?
• What are the strengths, weaknesses, and risks
in our supply chain?
data from each area (in appropriate ways):
• Who are our customers?
• What are their needs?
• How do we meet them?
• What do they respond to?
• What are our communication channels?
• Who needs to know (internally)?
• Who needs to know (externally)?
• What are our messages?
CCA LEADING BY DESIGN FELLOWS PROGRAM & SMALL BUT MIGHTY

37. Your
Company
customers
(end users)
NGOs
media
community
(geographic)
partners
labor unions
retailers
local
government
wholesalers
the
Environment
industry
trade
associations
employees
distributors
regional
government
courts suppliers &
manufacturers
insurers &
reinsurers
shareholders
banks
investors
institutional
investors
competitors
Your
Company
customers
(service
providers)

38. STRATEGY TOOLS

39. Strengths Weaknesses
Opportunities Threats

40. Strengths:
• We’re us
• We’re great
• We know stuff
• We’re fast
• We’re easy to use!
Weaknesses:
• We work too much
• We care too much
• We’re perfectionists
Opportunities:
• Own the market
• Expand product lines
• Make more stuff
• License stuff
• Co-brand with Disney
• Create an “experience”
Threats:
• Others can get fast
• Others can be easy
to use
• Someone gets to
Disney before us
• We don’t have a “big
data” strategy!

41. Strengths:
• We’re us
• We’re great
• We know stuff
• We’re fast
• We’re easy to use!
Weaknesses:
• We work too much
• We care too much
• We’re perfectionists
Opportunities:
• Own the market
• Expand product lines
• Make more stuff
• License stuff
• Co-brand with Disney
• Create an “experience”
Threats:
• Others can get fast
• Others can be easy
to use
• Someone gets to
Disney before us
• We don’t have a “big
data” strategy!

42. ENVIRONMENTAL
ANALYSIS
Social Issues: Customer Needs and Wants
Political Issues: Legal, Regulations...
Tech. Issues: Technology trends, opps...
Economic Issues: Market trends, opps...
Industry-Specific Issues: shifts in
resources, knowledge, practices, etc...

43. ENVIRONMENTAL
ANALYSIS
• Customers seek clarity
• Customers are afraid of technology
• RIM is out, HTML5 is in
• Lending is slowing
• Customers worried about their future
• Mobile, social, global, local, etc.

44. COMPETITIVE
ANALYSIS
• Clarity
• Fear of technology
• HTML5
• Loan Help
• Reassuring
X
X
X
X
√
√
√
√
X
X
X
X
X
√
X
X
X
√
X
X
√
√
X
X
X

45. Strengths Weaknesses
• Clarity • Fear of technology
• HTML5
• Loan Help
• Reassuring

46. Strengths Weaknesses
Opportunities
(Biggest
Strengths vs.
Biggest
Weaknesses)
Threats
(Biggest
Weaknesses
vs. Biggest
Strengths)
• Clarity • Fear of technology
• HTML5
• Loan Help
• Reassuring

47. Better
Worse
Smaller Bigger

48. Better
Worse
Smaller Bigger
Hey! A Blue
Ocean
Strategy!

49. For <target customers> that <need/
care about> , our <product, service>,
company> is a solution that <benefit> .
Unlike, <our competitor> , our <product,
service>, company> is <unique
differentiator> .
POSITIONING
STATEMENT

50. POSITIONING
STATEMENT
For Professor Plum that needs to
kill someone , our noose
is a solution that is silent .
Unlike, Miss Scarlett’s , our noose
is purple
.

51. Our customers want the most
features possible in a fast ,
inexpensive application delivered
in the cloud .
MADLIBS OF DESIGN

52. Where to start:
• Who is your audience really?
• What is their life life, what do they need,
what do they want?
• What value is being provided to them and
what kind of value can you realistically
provide?
• How can you differentiate yourself based
on this value?
• What’s it going to take to be successful?
• Are you ready? Is it worth doing?
• Do you have the right people (who do
really need)? Do you have the right culture?

53. The Business Model Canvas
Cost
Structure
Key
Partners
Key
Resources
Channels
Key
Activities
Value
Proposition
Customer
Relationships
Customer
Segments
Revenue
Streams

54. The Business Model Canvas
Cost
Structure
Key
Partners
Key
Resources
Channels
Key
Activities
Value
Proposition
Customer
Relationships
Customer
Segments
Revenue
Streams

55. NEEDSOFFER
EXPERIENCE
INTENT
VALUE

56. NEEDSOFFER
EXPERIENCE
INTENT
VALUE
CUSTOMER’S
EXPERIENCE
ORG.
DESIGN
RESOURCES
DELIVERYPRODUCTION
NETWORKFINANCE
ORGANIZATION’S
EXPERIENCE

57. RELATIONSHIP

58. EXPERIENCE
RELATIONSHIP

59. VALUE
EXPERIENCE

60. TOTAL VALUE
EXPERIENCE

61. TOTAL VALUE
FUNCTIONAL VALUE +
FINANCIAL VALUE +
EMOTIONAL VALUE +
IDENTITY VALUE +
MEANINGFUL VALUE =

62. FUNCTIONAL VALUE +
FINANCIAL VALUE +
EMOTIONAL VALUE +
IDENTITY VALUE +
MEANINGFUL VALUE =
QUANTITATIVE
TOTAL VALUE

63. FUNCTIONAL VALUE +
FINANCIAL VALUE +
EMOTIONAL VALUE +
IDENTITY VALUE +
MEANINGFUL VALUE =
QUANTITATIVE
QUALITATIVE
TOTAL VALUE

64. QUALITATIVE
VS.
QUANTITATIVE

65. QUALITATIVE
AND
QUANTITATIVE

66. CLV = GC • - M •∑
i = 0
n
(1 + d) i
r i
∑
i = 1
n
(1 + d) i - 0.5
r i - 1
Lifetime Customer Value
GC = gross contribution per customer
M = (relevant) retention costs per customer per year
n = horizon (in years)
r = yearly retention rate
d = yearly discount rate.
EXPERIENCE CREATES VALUE

67. Brand Value = { (V/S)b - (V/S)g } * Sales
(V/S)b = Enterprise Value / Sales ratio of the firm with the benefit of the brand name
(V/S)g = Enterprise Value / Sales ratio of the firm with the generic product
Let's use as an example branded cereals maker like Kellogg (K) against a generic provider like Ralcorp (RAH).
Value of Kellogg brand name = (1.78 - 1.32)(13846) = $6,369 Million
Thus, (6369/24200) or 26% of the value of the company is derived from brand equity.
EXPERIENCE CREATES VALUE

68. EXPERIENCE CREATES VALUE
“GOOD WILL”

69. From: The Experience Economy, Pine and Gilmore
Commodity Product Service Experience
Price/Value
EXPERIENCE CREATES VALUE

70. Commodity Product Service Event/Space
Price/Value
< EXPERIENCE >
EXPERIENCE CREATES VALUE

71. EXPERIENCE IS
STRATEGIC

72. USABILITY/
LEGIBILITY
Nokia 3650

73. EXPERIENCE BREADTH
Product
Service
Brand
Name(s)
Channel/Environment
(Space)
Promotion
Price
DURATION
Initiation
Immersion
Conclusion
Continuation
TRIGGERS
Sight
Sound
Smell
Taste
Touch
Concepts
Symbols
SIGNIFICANCE
Meaning
Status/Identity
Emotion/Lifestyle
Price
Function
INTENSITY
Reflex
Habit
Engagement
INTERACTION
Passive
Active
Interactive
EXPERIENCE

74. MEANING
CORE MEANINGS
VALUES/IDENTITY
EMOTIONS
PRICE
FEATURES (PERF.)

75. Corporate
Meaning Priorities
Team
Meaning
Priorities
Customer
Meaning
Priorities
Competitors’
Meaning Priorities
Strategic Focus

76. Accomplishment
Beauty
Creation
Community
Duty
Enlightenment
Freedom
Harmony
Justice
Oneness
Redemption
Security
Truth
Validation
Wonder
15 CORE MEANINGS:
Definitions: makingmeaning.org

77. TAKEAWAYS

78. TAKEAWAYS
• Qualitative AND Quantitative
• Strategy is derived from design research
• Design can (and should) play a role
• Designers need to leave the comfort of
the studio (and learn more about business)
• Leadership is communicating vision
• Relationships and value are built
through experience

79. QUESTIONS

80. THANK YOU
nathan@nathan.com
designmba.org