What is Means to be Strategic and Create Value (UX Strat Summit, SF 2014)

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Designers are already inherently connected to strategy. They just need to know how to get into the room. Note: the talking points in the notes field isn't a full transcript. They're mostly just notes for myself while presenting.

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What is Means to be Strategic and Create Value (UX Strat Summit, SF 2014)

  1. 1. WHAT IT MEANS TO BE STRATEGIC (AND CREATE VALUE) Nathan Shedroff California College of the Arts designmba.org nathan.com Saturday, June 14, 14
  2. 2. Saturday, June 14, 14 I come from a design background. In my case, I’m trained as an automobile designer, though I didn’t go into the industry.
  3. 3. Saturday, June 14, 14 Instead, I went directly into Information Design (which, at the time, was mostly in print).
  4. 4. Saturday, June 14, 14 Professionally, I grew-up in Interaction Design, working on presentations and kiosks in the late 80s, CD-ROMs and application interfaces throughout the 90s, and LOTS of websites starting in 1994. These are merely a fraction.
  5. 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 Saturday, June 14, 14 I’ve written, designed, and contributed to a lot of books (mostly on some aspect of design). These are the most important, though not all.
  6. 6. Saturday, June 14, 14 In 1996, I started working on experience, brand, online, and corporate strategy for a variety of companies, mostly in online ventures. This opened-up a new set of understandings for me about the product/service work I did—so much so that in 2006 earned an MBA.
  7. 7. MBA IN DESIGN STRATEGY MBA IN STRATEGIC FORESIGHT MBA IN PUBLIC POLICY DESIGN Saturday, June 14, 14 Designer (industrial, information, interaction, experience) turned business consultant and strategist, now, an educator. I’m here to share how we teach experience, value, design, and business today to our degree and executive students.
  8. 8. VALUE Saturday, June 14, 14 You can’t talk about strategy without talking about value and I don’t believe we don’t talk about value in the right ways in business, and as people from the more design- oriented side of business, it frustrates us, trying to get our points across. We are constantly struggling with the idea of value and how its measured.
  9. 9. 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 Saturday, June 14, 14 Economists resort to attempts like these to prove that relationships are important to business (how did we get to the point where this is a revelation?). create real value: Companies have been trying to assess this value for a long time.
  10. 10. 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 Saturday, June 14, 14 But none of these methods get at the total value, partly because they’re all focused on the quantitative—only the things that can be measured.
  11. 11. Other Metrics: • Booz & Co Global Innovation Study (2012) • Forrester’s Customer Experience Index • UK Design Council • BusinessWeek Index etc. DESIGN CREATES VALUE dmi: futurED company 2011 $bb rank % of sales 1 Apple $2.4 53 2.2% 2 Google $5.2 26 13.6% 3 3M $1.6 86 5.3% 4 Samsung $9.0 6 6.0% 5 GE $4.6 30 3.2% 6 Microsoft $9.0 5 12.9% 7 Toyota $9.9 1 4.2% 8 P&G $2.0 72 2.4% 9 IBM $6.3 17 5.9% 10 Amazon $2.9 48 6.1% “…The ten most innovative companies outperformed the top ten R&D spenders on all financial metrics.” Booz&Co Global Innovation Study 2012 And 9 out of 10 are DMI members Saturday, June 14, 14 But none of these methods get at “total value,” partly because they’re all focused on the quantitative.
  12. 12. Instagram Saturday, June 14, 14 Let me use an example. Last year, in 2012, Facebook bought Instagram for how much money?
  13. 13. Instagram $1.1B Saturday, June 14, 14 $1.1B. Now you might argue that Facebook overpaid and that’s their business but they still did so because it was valuable to them. But, how did they calculate that value? How would you? For example, what was their book value?
  14. 14. Instagram ~$50M Saturday, June 14, 14 No one who wasn’t part of the deal knows for sure but I’m betting it was around $100K. Even if you count the money investors put into the company, it was only a few million.
  15. 15. Instagram $1.05B ~$50M Saturday, June 14, 14 So, what accounted for the other $1.05B in value? It was the relationships they had created with customers.
  16. 16. Pixar $2.27B $1.97B Saturday, June 14, 14 (Disney) They’re not the only ones. This is a regular phenomenon with companies—especially creative ones (but not only).
  17. 17. Nextel $29.7B $5.3B Saturday, June 14, 14 (Sprint) This is clearest when companies are bought but it’s true of companies at any point in their lives.
  18. 18. “GOODWILL” BOOK VALUE Saturday, June 14, 14 “Book value” or “fair value” In the business world, we don’t so don’t know how to measure this, nor account for it, so we call it “goodwill.” In accounting,
  19. 19. BRAND VALUE BOOK VALUE Saturday, June 14, 14 In the brand world, we call Brand Value but that doesn’t account for everything taht’s happening either, it’s just a convenient placeholder for what’s going on.
  20. 20. Instagram $1.05B ~$50M Saturday, June 14, 14 But, look again at the numbers. Which is the number worth focusing on? ALL the best value is “off the books.” This is true of many, many companies—any with a strong brand, any with strong relationships, any that deliver value that is off the books. And, this isn’t just a phenomenon of B2C firms. So, our definition of value (not to mention our curation of it) is
  21. 21. TOTAL VALUE Saturday, June 14, 14 If we add these values together we get the actual total value of a company—one that better reflects the relationships with customers (and shareholders). Businesses know that this value exists but because they can’t measure it easily (and they’ve been told to only “look at the numbers” for
  22. 22. FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE = TOTAL VALUE Saturday, June 14, 14 So, here is what I’ve learned about Total Value. There are at least 5 types of significant value that contribute to Total Value.
  23. 23. TOTAL VALUE QUANTITATIVE FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE = Saturday, June 14, 14 This is the value most business people see. Some of this value is more quantitative, for which businesses have traditionally focused upon.
  24. 24. TOTAL VALUE QUALITATIVE FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE = Saturday, June 14, 14 Much of this value is quantitative, for which businesses has traditionally ignored. In fact, this is where the highest, more interesting, and most fulfilling value is. This is traditional business’ blindspot!
  25. 25. TOTAL VALUE PREMIUM VALUE FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE = Saturday, June 14, 14 Much of this value is quantitative, for which businesses has traditionally ignored. In fact, this is where the highest, more interesting, and most fulfilling value is. This is traditional business’ blindspot!
  26. 26. THOSE COMPANIES (AND PEOPLE) WHO FOCUS ON TOTAL VALUE CREATE MORE OF IT, MORE OFTEN Saturday, June 14, 14 Another way to say this is...
  27. 27. THOSE COMPANIES (AND PEOPLE) WHO FOCUS ON PREMIUM VALUE CREATE MORE OF IT, MORE OFTEN Saturday, June 14, 14 And who is good at developing Premium value?... (you all are) Ok, so far, are you with me?
  28. 28. QUALITATIVE VS. QUANTITATIVE Saturday, June 14, 14 And, in order to do so, we have to better understand the Qualitative —much better. The business world has been notoriously bad at understanding and valuing the qualitative. To hear most businesspeople and business professors explain it, “people won’t pay more for the same functional value.” But, try telling that to a sales
  29. 29. QUALITATIVE AND QUANTITATIVE Saturday, June 14, 14 For us, we can’t ignore the quantitative. This is what designers excel at. Both are necessary and we need to become comfortable with the quantitative as well as help our peers become comfortable with the qualitative. For now, we have to do the work on both sides. (Story of CEO, designer, and VP
  30. 30. TOTAL VALUE (RELATIONSHIPS) Saturday, June 14, 14 Relationships are the only way that value exists. It emerges dynamically, in the context of a relationship—all relationships including personal ones). And, it’s bi-directional.
  31. 31. TOTAL VALUE (RELATIONSHIPS) Saturday, June 14, 14 And, it’s bi-directional (something we sometimes forget).
  32. 32. TOTAL VALUE (RELATIONSHIPS) NEEDSOFFER INTENT EXPERIENCE Saturday, June 14, 14 A few things to remember about Value: It is emergent. You don’t decide on value. You can propose it (which is why we have value proposition) but because much of the most important value is invisible, you can only plan for and create the conditions for value to be exchanged but you can’t “make” it. This is why Experience is so important.
  33. 33. TOTAL VALUE (RELATIONSHIPS) Saturday, June 14, 14 Value is dynamic. It is changing all of the time. Most businesses are bad at dynamic situations because plans are hardly ever designed to be dynamic. Most strategy isn’t designed to be dynamic. That’s a problem.
  34. 34. R IE E P XE N CE TOTAL VALUE (RELATIONSHIPS) Saturday, June 14, 14 Value is only exchanged within an experience. Experiences govern the value we create. And, we all create experiences, whether we think we do or not. I’ll come back to Experience in a moment.
  35. 35. VALUE EMERGES WITHIN EXPERIENCE Saturday, June 14, 14 This is probably a more accurate way to describe it. It’s not easy and it’s not as deterministic as “experiences create value” but its not so off that we can’t use that phrase.
  36. 36. YOU’RE IN THE RELATIONSHIP BUSINESS Saturday, June 14, 14 And so are your clients, partners, peers, etc.
  37. 37. EXPERIENCE CREATES VALUE Saturday, June 14, 14 Let me give you another example of this... The iPod went on sale in 2001 but sales didn’t really take-off until 2004. The iTunes Store opened in April of 2003 and this is what
  38. 38. EXPERIENCE CREATES VALUE Saturday, June 14, 14 So, the iPod became big business for Apple but the company but, around this time, it noticed something interesting about people’s behavior. (people only want to carry about three things
  39. 39. EXPERIENCE CREATES VALUE Saturday, June 14, 14 On September 7, 2005, Apple and Motorola launched the ROKR. You don’t remember it because it flopped. Apple knew how difficult phones were (and that they had no expertise).
  40. 40. EXPERIENCE CREATES VALUE Saturday, June 14, 14 It wasn’t until June 29, 2007 that Apple shipped it’s first iPhone. It changed everything—for Apple, for customers, and for the industry.
  41. 41. EXPERIENCE IS STRATEGIC Saturday, June 14, 14 This makes experience strategic: which means design and architecture, are incredibly important. They provides the basis and context for understanding and delivering value. Value emerges from the experience delivered. The better the experience, the better the relationship, and the
  42. 42. DESIGN IS STRATEGIC Saturday, June 14, 14 This also means that Design is strategic (since design is the process of creating experiences). Ok, still with me?
  43. 43. STRATEGY Saturday, June 14, 14 Strategy is a word thrown-around in business a LOT and it means different things to different people. Sometimes, it’s used as a way to one-up others in a company (as in “that’s really just a tactical suggestion, we need to be strategic”).
  44. 44. 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 Saturday, June 14, 14 Here’s a more official definition, from Wikipedia
  45. 45. “a pattern in a stream of decisions” — Henry Mintzberg of McGill University Saturday, June 14, 14 Not much more helpful, eh?
  46. 46. Strategic management analyzes the major initiative 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 of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. Saturday, June 14, 14 Blah, blah, blah.
  47. 47. 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. Saturday, June 14, 14 Notice, though, who the protagonists are in this narrative... “on behalf of owners” Where are customers, citizens, or even users?
  48. 48. STRATEGY IS A HIGH-LEVEL PLAN (FOR ACTION) Saturday, June 14, 14 Really, all strategy is, is a plan--but a high-level plan. Product strategy is higher-level than product design. But, technology strategy may be higher still (and end- up driving many product strategy decisions). Marketing strategy and corporate strategy are higher, still.
  49. 49. “DESIGN IS A PLAN FOR ACTION” Charles Eames Saturday, June 14, 14 Coincidentally...
  50. 50. STRATEGY IS ABOUT CONTEXT Saturday, June 14, 14 The main difference between strategy and tactics is simply context--your organization’s, it’s competition, it’s markets and industries, and the rest of the world around it. And, not everyone in an organization is good at context. To be successful, you need to b able to see both, jump between the two, and know which
  51. 51. TACTIC STRATEGY Saturday, June 14, 14 There are a lot of parallels between strategy and UX.
  52. 52. TACTIC Usability STRATEGY Saturday, June 14, 14 Usability is a tactic.
  53. 53. TACTIC Usability Design (Craft) STRATEGY Experience Design (Strategy/“Thinking”) Saturday, June 14, 14 Experience is a strategy. There are a lot of parallels between strategy and UX. When people in a company talk about usability, they’re talking about features. However, when you talk about experience, you’re talking about relationships— something much more valuable.
  54. 54. TACTIC Operational Effectiveness & Productivity Products & Services (Offerings) Features/Performance Price STRATEGY Intent, Goals, Mission, Vision, & Culture Systems Stakeholders (employees, investors, media, communities, etc.) Saturday, June 14, 14 Some more things that are strategic or tactical...
  55. 55. TACTIC How to make, deliver, and support the best <offering> possible STRATEGY What we should be in the business of (to begin with) Saturday, June 14, 14 What this really boils down to is...
  56. 56. 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 OFFERINGS Saturday, June 14, 14 Or.... Now, I know that many of you may shy away from dealing with company issues. You went into product development because you care about creating great things for people. Right? Getting mixed-up in the day- to-day management details is just a distraction, right?
  57. 57. 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) Saturday, June 14, 14 The first way you build context is to get to know your many stakeholders—not merely shareholders. Traditional business strategy ignores all but those who own shares in the company or, begrudgingly, it might include employees. We know better now. All of these
  58. 58. STRATEGY TOOLS Saturday, June 14, 14 Speaking of traditional business strategy, let’s talk briefly about some of the common tools. How many of you have heard of a SWOT analysis? How many have helped create one?
  59. 59. Strengths Weaknesses Opportunities Threats Saturday, June 14, 14 The SWOT Analysis is simply a set of lists—the organization’s (or perhaps a product’s) biggest strengths, weaknesses, opportunities, and threats—SWOT.
  60. 60. 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! Saturday, June 14, 14 Most business people are taught to simply fill these in, like a form. They list everything they can think of. This is lazy.
  61. 61. 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! Saturday, June 14, 14 How do you really know that fast or perfection or Disney are what customers want? Where is the rigor, the proof, the research? What’s the point of research if people are just going to fill-in the blanks based on best guesses? This is a phenomenon that plagues most of strategy.
  62. 62. 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: ??? Saturday, June 14, 14 What are the top concerns in the market environment? Do users want it fast? What drives their decision? Are there issues coming down the line from the courts or regulation? (we’re already good at much of this, too)
  63. 63. ENVIRONMENTAL ANALYSIS • Customers seek clarity • Customers are afraid of technology • RIM is out, HTML5 is in • Lending is slowing • Customers worried about their future • etc. Saturday, June 14, 14 Only when you’ve explored these can you prioritize what matters (as opposed to what’s possible).
  64. 64. 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 Saturday, June 14, 14 Once you know these, you can compare yourself against your competitors on the issues that matter! (these are known as decision-drivers) Otherwise, you’ll be comparing your organization on issues that don’t drive decisions.
  65. 65. Strengths Weaknesses • Clarity • Fear of technology • HTML5 • Loan Help • Reassuring Saturday, June 14, 14 NOW, you know which issues to measure your strengths and weaknesses are.
  66. 66. Strengths Weaknesses Opportunities (Biggest Strengths vs. Biggest Weaknesses) Threats (Biggest Weaknesses vs. Biggest Strengths) • Clarity • Fear of technology • HTML5 • Loan Help • Reassuring Saturday, June 14, 14 And, your Opportunities and Threats work themselves out. SWOT should be derived from research, not guessed-at, yet this isn’t how it’s mostly done.
  67. 67. Better Worse Smaller Bigger Saturday, June 14, 14 And, beware the tyranny of the 2x2 grid. There are always more than two important variables, but it’s difficult for people to hold in their head. Yet, you see it constantly. In the tech industry, this is almost always reduced to price vs performance.
  68. 68. Better Worse Smaller Bigger Hey! A Blue Ocean Strategy! Saturday, June 14, 14 Otherwise, the hole in the market may not actually be an opportunity.
  69. 69. 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 Saturday, June 14, 14 This is the same problem with Positioning Statements. For example, this is how strategy is usually done by our business peers. I kid you not, this is how business schools teach people to create a positioning statement.
  70. 70. POSITIONING STATEMENT For our users that need the most features , our app is a solution that is fast and inexpensive. Unlike our competitors , our app is in the cloud. Saturday, June 14, 14 We usually get something like this. These are almost always simply filled- in with what people “know” and not derived from what they learn from customers. Ideally, these items are derived from research about whom? (the customer) In what way, qualitative or quantitative? (both) And who does
  71. 71. POSITIONING STATEMENT For Professor Plum that needs to kill someone , our noose is a solution that is silent . Unlike, Miss Scarlett , our noose is purple. Saturday, June 14, 14 It’s like a MadLibs for business. This isn’t a bad tool, it’s just misused most of the time.
  72. 72. The Business Model Canvas Cost Structure Key Partners Key Resources Channels Key Activities Value Proposition Customer Relationships Customer Segments Revenue Streams Saturday, June 14, 14 Customer research is at the core of business models, not just corporate strategy. Without it, the plan is set-up for failure.
  73. 73. The Business Model Canvas Cost Structure Key Partners Key Resources Channels Key Activities Value Proposition Customer Relationships Customer Segments Revenue Streams Saturday, June 14, 14 This brings us to the last point I want to make. Business is about value (what value you can provide, what value people need, and what value you can get in return).
  74. 74. Saturday, June 14, 14 When we abdicate our involvement in higher-level decision-making, we lose our ability to work on the right things —or be successful, or be happy making what we make. In addition, I can assure you that most of the information used in this strategy phase is based on crappy, quantitative data and doesn’t
  75. 75. Saturday, June 14, 14 All of us have an opportunity to play a role not only in product development, but also in the board room, where strategy for the company is set (and needs to reflect better customer understanding) because we know customers in better, deeper, and more valuable ways and this information is missing in nearly all strategy development.
  76. 76. Saturday, June 14, 14 We need to get into the room. We need to find ways to get our knowledge into the strategy process to affect what the business thinks it should make and not merely how. Are you still with me? Here are some ways to do that...
  77. 77. MYTHS OF BUSINESS Cooperation is for wusses Growth is everything The Free Market (exists) Markets optimize efficiently Businesses are more efficient than Government “The business of business is business” Rich people create jobs “Corporations are people, my friend” The Founding Fathers were pro-business Leadership is based on authority Saturday, June 14, 14 MBAs have essentially ruined the world. OUR world. Partly, this is because they’re taught a LOT of myths about business, and this is a big problem for those of us who make things for people, whether products or services. I want to stress that MBAs aren’t bad people, they’re just taught that way.
  78. 78. EXPERIENCE TOOLS designmba.org/open-source-curricula Saturday, June 14, 14
  79. 79. Qualitative Research Techniques: Interviews Careful Surveys Shadowing Laddering Games, etc. Book: The Meaning of Things by Mihaly Csikszentmihalyi Saturday, June 14, 14 You know how to understand customer, already! Design research techniques (the qualitative ones, not just the quantitative ones) ARE the pieces missing when strategy is built. The results from UX research techniques, including some that aren’t as common (like laddering) need to inform strategy—and we
  80. 80. Flavor Bright/ Saturated Hard, Artificial, Natural Curvaceous/ Smooth, Solid, Sharp/Pointed Loud, Simple/Clear, Musical/Melodious, Mechanical Musky, Bright, Alcohol, Forest/Plants Meaty, Salty Accomplishment Triggers SoundColor Materials Form Aroma Saturday, June 14, 14 I hate “mood boards!” Essentially, they’re unprofessional. Unless you can explain why each element applies to your solution, they’re a distraction —or worse, delegitimizes your value. If you are researching the triggers around sensorial decisions, only these are applicable responses to understand. This isn’t about
  81. 81. Flavor Primary Hard Complex Loud Forest/Plants Sweet - Sugar Community Triggers SoundColor Materials Form Aroma Saturday, June 14, 14
  82. 82. Flavor Muted/ Desaturated Plastic Porous Natural/Organic Natural, Floral Salty Harmony Triggers SoundColor Materials Form Aroma Saturday, June 14, 14
  83. 83. 6. TRIGGERS// Core meaning pair 1: Community/Accomplishment Colors: Bold / Gold Silver Bronze Materials: Natural / Textured Forms: Circular / Tall Sounds: Chatter / ROCK! Aromas: Wood fire, Chocolate, Earth Flavors: MultiSpice Saturday, June 14, 14
  84. 84. 6. TRIGGERS// Core meaning pair 2: Beauty/Oneness Colors: Bright, Colorful, Materials: Rich Forms: Organic, Simple Sounds: Nature, Crickets, Singing Aromas: Dewy Forest, Sweet, Salty Ocean Flavors: Mint, Sweet Saturday, June 14, 14
  85. 85. Core Meaning Triggers Through on-line surveys and in-person qualitative interviews, we identified a series of triggers that evoke the core meanings: Community Beauty Freedom Harmony Truth Colors Bright, Green Soft Pastel Bright White and Light Warm Muted White, Dark, Shimmery Light Material Natural, texture, woven, Smooth, Pliable Shiny, Natural Natural, rough, hard, smooth, flowing river Smooth, Earthy, Natural, Soft Tough, Hard, Natural Form Round, Organic Curvaceous, Fluid, Organic, Complex Open, Complex, Organic, Not bound Round, Organic Solid, Sharp Sound Laughter, not Loud- like an orchestra or lots of voices, multi- pitched Soft, Musical, Complex Musical, Waterfall Rhythmic, Natural, Balanced Soft, Resonant, Silence, Complex Aromas Fruity, Earthy, Food Floral, Soft, Perfumed Clean, Fresh, Ocean, In the woods Nature, Musty, Fresh Clean, Fresh, Antique smell Flavors Nutty Sweet, Dinner Sweet, Fruity Fruity, Nutty, Meat Sweet, Warm, Complex, Mix Salty Sour, Minty Saturday, June 14, 14
  86. 86. INITIATION (EXPECTATIONS) STATE OF MIND (CONTEXT): BACKSTAGE: TOUCHPOINT ECOSYSTEM: PRODUCT, SERVICE, EVENT, NAME, IDENTITY/SYMBOL MEDIA: SOCIAL, ETC? LOCATION EMOTIONS TRIGGERS: VISUAL (COLOR, TYPE, LAYOUT, IMAGE, PATTERN), AUDIO, AROMA, TASTE, TOUCH, CONCEPT MEMORY, BIAS, MENTAL MODELS GOAL/VALUE AGENT ACTION/RESPONSE: ENGAGEMENT CONCLUDE/REFLECT CONTINUATION (REPEAT) TIME > > > ROX WAVELINE TEMPLATE PROJECT: TASK: INTENSITY>>> PLANNED ACTUAL PERSONA/ACTOR: designmba.org/open-source-curricula Saturday, June 14, 14 We need to think of this journey in emotional, identity, and meaning value, and not merely in terms of functional and economic value. A waveline is a technique that comes form the narrative worlds (music composition and screenwriting). Think of it as a journey map with all forms of value listed. The trick is that you first map these forms of value BEFORE you
  87. 87. CCA LEADING BY DESIGN FELLOWS PROGRAM www.cca.edu/fellowsprogram EXPERIENCE WORKBOOK OBSERVATIONS AND OPPORTUNITIES IN EXPERIENCE DESIGN 15 THE 6 DIMENSIONS OF EXPERIENCE: There are 6 dimensions of every experience, whether these are natural or man-made adn whether these are business-oriented to not. This workbook will help you explore and analyze the experiences around you and aide you in developing better experiences for customers. SIGNIFICANCE Meaning Status/Identity Emotions/Lifestyle Price/Value Function DURATION (TIME) Initiation Immersion Conclusion Continuation TRIGGERS Sight Sound Smell Taste Touch Concepts Symbols BREADTH Prodcut Service Brand Name Channel/Environment Promotion Price INTENSITY Reflex Habit Engagement INTERACTION Static Passive Active Interactive For each of the dimensions above, observe your customers/users/audience when and where they experience needs and current solutions. EXPERIENCE OBSERVATION INTENSITY Is the experience... REFLEX? HABIT? ENGAGEMENT? If so, there is likely no design opportunity. If so, can this experience be turned into an engagement experience? This is where the vast number of opportunities lie. DURATION (TIME) Is the experience... REFLEX? HABIT? ENGAGEMENT? If so, there is likely no design opportunity. If so, can this experience be turned into an engagement experience? This is where the vast number of opportunities lie. 1 14 BUSINESS MODEL: With these new elements of experience, are their threats to your gurrent business model? Are there new opportunities? designmba.org/open-source-curricula Saturday, June 14, 14
  88. 88. EXPERIENCE DURATION Initiation Immersion Conclusion Continuation TRIGGERS Sight Sound Smell Taste Touch Concepts/Names Symbols Price VALUE Meaningful Status/Identity Emotional/Lifestyle Economic Functional INTENSITY Reflex Habit Engagement INTERACTION Passive Active Interactive BREADTH (CHANNEL/TOUCHPOINTS) Product Service Event Environment (Space) Saturday, June 14, 14 These are the major dimensions of design. All but one, “triggers” are invisible. And, that’s the only one we traditionally think of as “design.” All of these are always available to you when creating experiences (products, services, events, envirnments, etc.), whether you use them of not.
  89. 89. EXPERIENCETRIGGERS Sight Sound Smell Taste Touch Concepts/Names Symbols Price INTENSITY Reflex Habit Engagement INTERACTION Passive Active Interactive DURATION Initiation Immersion Conclusion Continuation VALUE Meaningful Status/Identity Emotional/Lifestyle Economic Functional BREADTH (CHANNEL/TOUCHPOINTS) Product Service Event Environment (Space) Saturday, June 14, 14 But I will talk about this one because it’s the other important one. Significance defines the depth of the relationship.
  90. 90. CORE MEANINGS VALUES/IDENTITY EMOTIONS PRICE FEATURES (PERF.) Saturday, June 14, 14 Which means it defines the levels of value that emerge in the relationship.
  91. 91. CORE MEANINGS VALUES/IDENTITY EMOTIONS PRICE FEATURES (PERF.) VALUE: Saturday, June 14, 14 AND, it aligns with what we know about the five kinds of “total value.” Without realizing it, people ask themselves a series of questions with they evaluate choices: Does this do what I need? Does it have the right features? Does it perform well? These are easy questions that we’re very aware of and they’re
  92. 92. CORE MEANINGS VALUES/IDENTITY EMOTIONS PRICE FEATURES (PERF.) Does this do what I need...? VALUE: Saturday, June 14, 14 Without realizing it, people ask themselves a series of questions with they evaluate choices: Does this do what I need? Does it have the right features? Does it perform well?
  93. 93. CORE MEANINGS VALUES/IDENTITY EMOTIONS PRICE FEATURES (PERF.) ...at a price that’s worth it? VALUE: Saturday, June 14, 14 But, as we move deeper, our questions change: What price am I willing to pay for these functions? Features and Price are actually low-value, short-
  94. 94. CORE MEANINGS VALUES/IDENTITY EMOTIONS PRICE FEATURES (PERF.) How does this make me feel? VALUE: Saturday, June 14, 14 Even deeper, our questions become more intimate and abstract: Does this make me feel good? Or bad? or younger? Or more successful? But, as
  95. 95. CORE MEANINGS VALUES/IDENTITY EMOTIONS PRICE FEATURES (PERF.) Is this me? VALUE: Saturday, June 14, 14 Deeper still, things get even more personal until the questions focus on our identities, whether we realize it or not. Are you a Coke person or Pepsi person? Mac or Windows?
  96. 96. CORE MEANINGS VALUES/IDENTITY EMOTIONS PRICE FEATURES (PERF.) Does this fit into my world? VALUE: Saturday, June 14, 14 Then we reach the deepest point of connection between people (or between products, brands, organizations, movements, and people). You get to these through qualitative research techniques and they drive the deepest relationships. Meaning is a complex phenomenon
  97. 97. Accomplishment Beauty Creation Community Duty Enlightenment Freedom Harmony Justice Oneness Redemption Security Truth Validation Wonder 15 CORE MEANINGS: Definitions: makingmeaning.org Saturday, June 14, 14 If you want to design for meaningful experiences (the highest-value relationships), we use a pallet of priorities about the world and how we understand and engage it. Meaning is something we all create, react to, and understand (though we don’t always acknowledge it). These 15 core meanings are
  98. 98. Corporate Meaning Priorities Team Meaning Priorities Customer Meaning Priorities Competitors’ Meaning Priorities Strategic Focus Saturday, June 14, 14 Focus on what relationships and experience strategy does. Align the organization (it’s goals, vision, and operations) with what customers want, need, and value the most and what the org can deliver well.
  99. 99. Corporate Decision Drivers Team Decision Drivers Customer Decision Drivers Competitors’ Decision Drivers Strategic Focus Community Wonder Security Accomplishment Security Wonder Security Community Accomplishment Saturday, June 14, 14 These describe the real drivers of decisions and value for customers and this allows us to align our strategy around these very, most valuable opportunities. This comes from experiential (qualitative) research. It can drive the rest of the quantitative decisions, strategically, to better our chances of delivering the most and highest-value value.
  100. 100. Instagram $1.05B ~$50M Saturday, June 14, 14 This value! If we can do this, we can help our peers create the very kind of strategy that creates the best kind of value (and makes us important).
  101. 101. Saturday, June 14, 14 Are you willing to focus on relationships, brave the business- speak, an use your design powers to create meaningful things? WE need to do this, because there currently aren’t anyone else who can.
  102. 102. THANK YOU nathan@nathan.com designmba.org 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 Design Strategy in Action Edited by Nathan Shedroff A publication from the MBA in Design Strategy program California College of the Arts 2011 Saturday, June 14, 14
  103. 103. QUESTIONS? nathan@nathan.com designmba.org Saturday, June 14, 14

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