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REDEFINING VALUE:
BRIDGING THE INNOVATION
CULTURE DIVIDE
Nathan Shedroff
Chair, Design MBA Programs
California College of t...
MY BACKGROUND
MAKE IT SO
Interaction Design Lessons from Science Fiction
by NATHAN SHEDROFF & CHRISTOPHER NOESSEL
foreword by Bruce Ster...
deluxe
MBA IN DESIGN STRATEGY
MBA IN STRATEGIC FORESIGHT
MBA IN CIVIC INNOVATION
BUSINESS
BUSINESS
DESIGN
BUSINESS
(DESIGN, ARCH, ENG…)
BUSINESS
DESIGN
BUSINESS
DESIGNDESIGN
“BEAN COUNTERS”
“CREATIVES”
OPTIMIZATION
IMAGINATION
CERTAINTY
AMBIGUITY
MINIMAL VIABLE PRODUCT
EXPERIENCE PROTOTYPE
functional
financial
functional
CLV = GC • - M •∑
i = 0
n
(1 + d)i
ri
∑
i = 1
n
GC = gross contribution per customer
M = (relevant) retention c...
functional
{ (V/S)b - (V/S)g}* Sales
(Brand Value)
(V/S)b = Enterprise Value / Sales ratio of the firm with the benefit of t...
functional
financial
emotional
identity
meaningful
RELATIONSHIP
functional
financial
emotional
identity
meaningful
RELATIONSHIP
functional
financial
emotional
identity
meaningful
R
E
X
PEIEN
E
C
R
E
X
PEIEN
E
C
functional
financial
emotional
identity
meaningful
functional
financial
emotional
identity
meaningful
QUALITATIVE
QUANTITATIVE
functional
financial
emotional
identity
meaningful
functional
(Does this do what I need…?)
financial
(…at a price that’s worth it?)
emotional
(How does this make me feel?)
identity
(Is this me?)
meaningful
(Does this fit into my world?)
functional
financial
emotional
identity
meaningful
Instagram$1.1
functional
financial
emotional
identity
meaningful
Instagram$1.1
$86M
functional
financial
emotional
identity
meaningful
Instagram$1.1
$1.01
$86M
functional
financial
emotional
identity
meaningful
Instagram$1.1
$1.01
$86M Quantitative
Qualitative
functional
financial
emotional
identity
meaningful
Instagram$1.1
$1.01
$86M Quantitative
Qualitative
(Premium)
“GOOD WILL”
“BOOK VALUE”
QUALITATIVE
QUANTITATIVE
BUSINESS + DESIGN
MYTHS OF BUSINESS
GROWTH IS EVERYTHING
FREE MARKETS ARE EFFICIENT
MARKETS OPTIMIZE EVERYTHING
“THE BUSINESS OF BUSINESS IS BUSINESS”
“CORPOR...
MYTHS OF DESIGN
THE WORK SPEAKS FOR ITSELF
DESIGN IS FOCUSED ON CUSTOMERS
DESIGNERS CREATE CULTURE
BUSINESSPEOPLE ONLY CARE ABOUT THE NUMB...
VALUE
TOTAL VALUE
RELATIONSHIP
EXPERIENCE
INNOVATION
Lessons from The Catalyst:
The Behaviors That Foster Innovation

Within Orgs Are Often Fireable

Offenses:
• Hiding budget
...
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Operations
Dir.
Marketing
Dir. StrategyDir. IT
ContractsM...
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Operations
Dir.
Marketing
Dir. StrategyDir. IT
ContractsM...
Dir.
Operations
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Marketing
Dir. StrategyDir. IT
ContractsM...
Dir.
Operations
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Marketing
Dir. StrategyDir. IT
ContractsM...
Marketing
Commun,
Advertising
Business
Development
PR
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Ope...
Marketing
Commun,
Advertising
Business
Development
PR
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Ope...
Marketing
Commun,
Advertising
Business
Development
PR
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Ope...
Marketing
Commun,
Advertising
Business
Development
PR
Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Ope...
INNOVATION CULTURES:
39% Dynamic Innovators
26% Creative Innovators
18% Structured Innovators
10% Ad Hoc Innovators
8% Inn...
Research: Cheskin (2008)
INNOVATION CULTURES:
39% Dynamic Innovators
(innovation is lead by executives and cross-functiona...
INNOVATION CULTURES:
26% Creative Innovators
(more spontaneous and build innovation around inspiration
and instinct derive...
INNOVATION CULTURES:
18% Structured Innovators
(meticulous processes in the hands of middle managers,
Research & Developme...
INNOVATION CULTURES:
10% Ad-Hoc Innovators
(occasionally, and haphazardly create breakthroughs, no

set process and often ...
INNOVATION CULTURES:
8% Innovation Outsourcers
(just can’t innovate inside the company, culture doesn’t trust or
value inn...
IT’S MORE IMPORTANT FOR AN
ORGANIZATION TO KNOW ITSELF
THAN TO BE ANY SPECIFIC TYPE
ORGANIZATIONS, DEPARTMENTS,
TEAMS, & INDIVIDUALS ALL HAVE
DIFFERENT CULTURES
Leadership
•  Support design from the top
•  Communicate vision and values 

internally (all parts of the org)
•  Support ...
Marketing
New approaches that support
Innovative Opportunities:
•  Qualitative Marketing Insight

(not merely Quantitative...
Operations
•  Invest time and budget 

toward design efforts
•  Support design efforts

in other org divisions
•  Regular ...
R&D
•  Build and maintain a culture

that attracts and enables

integrative and divergent

thinkers
•  Provide “cover” for...
Technology
•  Abandon “command and
control” for a service mentality:
Explore and deploy in the
service of departmental and...
Finance
•  Explore new business models
• Explore new funding models
•  Abandon “command and

control” for a service mental...
HR
•  Understand and Develop 

appropriate hiring procedures
•  Develop and deploy new 

review and reward structures
• So...
Design
•  Understand business process,

issues, and terminology
•  Develop new ways of communicating 

customer experience...
QUALITATIVE
QUANTITATIVE
VS.
QUALITATIVE
QUANTITATIVE
AND
adopt a new
practice
CARE DRIVES CONVERSATIONS WHICH CREATE COMMITMENTS
WHICH ENABLE ACTIONS WHICH DRIVES RESULTS
The root...
Business Model Generation, Alexander Osterwalder
businessmodelgeneration.com
}44
The Business Model Canvas
Cost
Structure
...
PC Customer Experience Waveline
©2014 TechCo. CORPORATION
USEEXPLORATION SETUPPURCHASE
Experiences + Touchpoints
INTENSITY...
ne
CONFIDENTIAL - INTERNAL USE ONLY
USESETUPPURCHASE
This Waveline provides Te
ences felt by customers ov
sion of a custom...
INTEGRATED BOTTOM LINE
Stage 0:
Unsustainable
“Business as Usual”
Stage 1:
Exploration
Stage 2:
Experimentation
Stage 3:
Leadership
Stage 4:
Rest...
MBA IN DESIGN STRATEGY
MBA IN STRATEGIC FORESIGHT
MBA IN CIVIC INNOVATION
Strategic Focus
Corporate
Meaning Priorities
Team & Partner
Meaning
Priorities
Customer
Meaning
Priorities
Competitors’ Me...
DESIGN THINKING
DESIGN RESEARCH
“NEW BUSINESS”
NEW LEADERSHIP
SYSTEMS THINKING
SUSTAINABILITY
Nathan Shedroff
Chair, Design MBA Programs
California College of the Arts
nathan@nathan.com
@nathanshedroff
designmba.cca.e...
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)
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Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)

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Nathan Shedroff: "Redefining Value: Bridging the Innovation Culture Divide"
Enterprise UX 2015 • May 14, 2015 • San Antonio, TX, USA
http://enterpriseux.net

Published in: Design

Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)

  1. 1. REDEFINING VALUE: BRIDGING THE INNOVATION CULTURE DIVIDE Nathan Shedroff Chair, Design MBA Programs California College of the Arts nathan@nathan.com @nathanshedroff designmba.cca.edu
 @designmba
  2. 2. MY BACKGROUND
  3. 3. 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 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 2008 Edition Dictionary of Sustainable Management
  4. 4. deluxe
  5. 5. MBA IN DESIGN STRATEGY MBA IN STRATEGIC FORESIGHT MBA IN CIVIC INNOVATION
  6. 6. BUSINESS
  7. 7. BUSINESS DESIGN
  8. 8. BUSINESS (DESIGN, ARCH, ENG…)
  9. 9. BUSINESS DESIGN
  10. 10. BUSINESS DESIGNDESIGN
  11. 11. “BEAN COUNTERS” “CREATIVES”
  12. 12. OPTIMIZATION IMAGINATION
  13. 13. CERTAINTY AMBIGUITY
  14. 14. MINIMAL VIABLE PRODUCT EXPERIENCE PROTOTYPE
  15. 15. functional financial
  16. 16. functional CLV = GC • - M •∑ i = 0 n (1 + d)i ri ∑ i = 1 n 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. (1 + d)i - 0.5 r i - 1 (Lifetime Customer Value)
  17. 17. functional { (V/S)b - (V/S)g}* Sales (Brand Value) (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.
  18. 18. functional financial emotional identity meaningful
  19. 19. RELATIONSHIP functional financial emotional identity meaningful
  20. 20. RELATIONSHIP functional financial emotional identity meaningful R E X PEIEN E C R E X PEIEN E C
  21. 21. functional financial emotional identity meaningful
  22. 22. functional financial emotional identity meaningful QUALITATIVE QUANTITATIVE
  23. 23. functional financial emotional identity meaningful
  24. 24. functional (Does this do what I need…?)
  25. 25. financial (…at a price that’s worth it?)
  26. 26. emotional (How does this make me feel?)
  27. 27. identity (Is this me?)
  28. 28. meaningful (Does this fit into my world?)
  29. 29. functional financial emotional identity meaningful Instagram$1.1
  30. 30. functional financial emotional identity meaningful Instagram$1.1 $86M
  31. 31. functional financial emotional identity meaningful Instagram$1.1 $1.01 $86M
  32. 32. functional financial emotional identity meaningful Instagram$1.1 $1.01 $86M Quantitative Qualitative
  33. 33. functional financial emotional identity meaningful Instagram$1.1 $1.01 $86M Quantitative Qualitative (Premium)
  34. 34. “GOOD WILL” “BOOK VALUE”
  35. 35. QUALITATIVE QUANTITATIVE
  36. 36. BUSINESS + DESIGN
  37. 37. MYTHS OF BUSINESS
  38. 38. GROWTH IS EVERYTHING FREE MARKETS ARE EFFICIENT MARKETS OPTIMIZE EVERYTHING “THE BUSINESS OF BUSINESS IS BUSINESS” “CORPORATIONS ARE PEOPLE MY FRIEND” THE FOUNDING FATHERS (USA) WERE PRO-BUSINESS THE GPD MEASURES PROGRESS RICH PEOPLE CREATE JOBS THE NUMBERS TELL THE STORY MARKETING & SALES ARE SIMILAR BUSINESSES ARE MORE EFFICIENT THAN GOVERNMENTS FOCUS ON MINIMAL VIABLE PRODUCT COOPERATION IS FOR WUSSES MYTHS OF BUSINESS
  39. 39. MYTHS OF DESIGN
  40. 40. THE WORK SPEAKS FOR ITSELF DESIGN IS FOCUSED ON CUSTOMERS DESIGNERS CREATE CULTURE BUSINESSPEOPLE ONLY CARE ABOUT THE NUMBERS NUMBERS DON’T TELL THE STORY YOU CAN PROTECT AN IDEA DESIGNERS CREATE AND CONTROL THE EXPERIENCE IT’S GOTTA LOOK NICE THE BEST SOLUTION ALWAYS WINS MYTHS OF DESIGN
  41. 41. VALUE
  42. 42. TOTAL VALUE
  43. 43. RELATIONSHIP
  44. 44. EXPERIENCE
  45. 45. INNOVATION
  46. 46. Lessons from The Catalyst: The Behaviors That Foster Innovation
 Within Orgs Are Often Fireable
 Offenses: • Hiding budget • Working on projects after they’re 
 cancelled • Going “out of bounds” for mentors, 
 partners, and conspirators • Reframing the original opportunity
  47. 47. Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Operations Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Marketing Commun, Advertising Customer Support Compliance Business Development Market Research PR Social Media Brand Strategy Customers
  48. 48. Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Operations Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Marketing Commun, Advertising Customer Support Compliance Business Development Market Research PR Social Media Brand Strategy Customers
  49. 49. Dir. Operations Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Marketing Commun, Advertising Customer Support Compliance Business Development Market Research PR Social Media Brand Strategy Customers
  50. 50. Dir. Operations Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Marketing Commun, Advertising Customer Support Compliance Business Development Market Research PR Social Media Brand Strategy Customers
  51. 51. Marketing Commun, Advertising Business Development PR Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Operations Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Customer Support Compliance Market Research Social Media Brand Strategy Customers
  52. 52. Marketing Commun, Advertising Business Development PR Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Operations Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Customer Support Compliance Market Research Social Media Brand Strategy Customers
  53. 53. Marketing Commun, Advertising Business Development PR Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Operations Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Customer Support Compliance Market Research Social Media Brand Strategy Customers
  54. 54. Marketing Commun, Advertising Business Development PR Product Development Board CEO Dir. LegalDir. HRDir. Finance Dir. Operations Dir. Marketing Dir. StrategyDir. IT ContractsManufact. Purchasing Distribution Warehouse Quality Control Acc. Payables Acc. Receivables Recruiting Training Health & Safety Network Admin. Training Support Community Relations Research & Development Strategic Partnerships Customer Insight Customer Support Compliance Market Research Social Media Brand Strategy Customers Shareholders Stakeholders
  55. 55. INNOVATION CULTURES: 39% Dynamic Innovators 26% Creative Innovators 18% Structured Innovators 10% Ad Hoc Innovators 8% Innovation Outsourcers 8% 10% 18% 26% 39% Research: Cheskin (2008)
  56. 56. Research: Cheskin (2008) INNOVATION CULTURES: 39% Dynamic Innovators (innovation is lead by executives and cross-functional teams, strategic innovators, integrating innovation right into their corporate strategy) ex: GAP, Pepsi •  Strategic Thinking Guides Overall Process •  Led by Senior Management with Cross-Functional 
 Teams • Cross-Functional Collaboration Critical •  Creative Environment Important •  Innovation is not Dependent on a “Big Idea” •  Risk-Taking is Accepted
  57. 57. INNOVATION CULTURES: 26% Creative Innovators (more spontaneous and build innovation around inspiration and instinct derived from one or a few “geniuses,” intuitively aware of trends and customers’ cultures, act quickly, decisively, and creatively) ex: Apple, numerous start-ups • “Big Ideas” Inspire Most Innovation Initiatives •  Led by Senior Management •  Exertion is Often Ad-Hoc and Doesn’t Follow a Set Process •  Creativity and Curiosity are more Important Than Analytics •  Risk-Taking is Encouraged •  Design is recognized and respected as a partner Research: Cheskin (2008)
  58. 58. INNOVATION CULTURES: 18% Structured Innovators (meticulous processes in the hands of middle managers, Research & Development, Information Technology, or Product Development groups) ex: Nestlé, Kraft, Boeing •  Innovation is the Outcome of a Formal Process •  Leadership by Middle Management, R&D, and 
 Technology Departments •  Cross-Functional Collaboration is Not Emphasized • Analytic Evaluations are Usually More Important Than 
 Creativity • Most Innovations Are Iterative and Risk is Minimized Research: Cheskin (2008)
  59. 59. INNOVATION CULTURES: 10% Ad-Hoc Innovators (occasionally, and haphazardly create breakthroughs, no
 set process and often don’t know how they did it and can’t replicate it, don’t always understand why an offering is successful (or not). ex: Healthcare providers, utilities, retailers, most auto companies • Innovation Approached in Isolation (internally and externally) •  Leadership by Middle Management, R&D, and 
 Technology Departments •  Cross-Functional Collaboration is Non-Existent • Qualitative Metrics Only • Risk AdverseResearch: Cheskin (2008)
  60. 60. INNOVATION CULTURES: 8% Innovation Outsourcers (just can’t innovate inside the company, culture doesn’t trust or value innovation processes, regularly hire or acquire innovation expertise or solutions from the outside, concentrate mostly on sales, promotion, and brand strategies) ex: many fashion houses, older technology firms, or pure marketers, most financial services •  Risk adverse •  Quantitatively managed and focused (only) •  No real support for innovation across all divisions • Innovators often leave for other opportunities Research: Cheskin (2008)
  61. 61. IT’S MORE IMPORTANT FOR AN ORGANIZATION TO KNOW ITSELF THAN TO BE ANY SPECIFIC TYPE
  62. 62. ORGANIZATIONS, DEPARTMENTS, TEAMS, & INDIVIDUALS ALL HAVE DIFFERENT CULTURES
  63. 63. Leadership •  Support design from the top •  Communicate vision and values 
 internally (all parts of the org) •  Support qualitative metrics for 
 success (not only quantitative) •  Ensure all aspects of the org 
 understand who is expected to
 innovate and the rewards •  Don’t make design decisions but ensure they’re being made • Temper legal advice
  64. 64. Marketing New approaches that support Innovative Opportunities: •  Qualitative Marketing Insight
 (not merely Quantitative Research) •“Design Research” Techniques •  Customer Insight Before 
 Technological Development
 (Augmenting “Agile” Development) •  Separating Marketing from Sales
  65. 65. Operations •  Invest time and budget 
 toward design efforts •  Support design efforts
 in other org divisions •  Regular dialog throughout 
 divisions
  66. 66. R&D •  Build and maintain a culture
 that attracts and enables
 integrative and divergent
 thinkers •  Provide “cover” for development •  Work with Marketing, Customer 
 Support, and Customers directly •  Prototype and deploy!
  67. 67. Technology •  Abandon “command and control” for a service mentality: Explore and deploy in the service of departmental and customer needs (not merely the needs of the IT dept.) • Consider the experience!
  68. 68. Finance •  Explore new business models • Explore new funding models •  Abandon “command and
 control” for a service mentality
  69. 69. HR •  Understand and Develop 
 appropriate hiring procedures •  Develop and deploy new 
 review and reward structures • Source creatively and 
 dynamically •  Work closely with design leads •  Abandon process when 
 necessary
  70. 70. Design •  Understand business process,
 issues, and terminology •  Develop new ways of communicating 
 customer experience to non-designer
 peers • Respect the need (and time) for
 quantitative metrics and decisions •  Work closely with non-designers •  Focus on Total Value!
  71. 71. QUALITATIVE QUANTITATIVE VS.
  72. 72. QUALITATIVE QUANTITATIVE AND
  73. 73. adopt a new practice CARE DRIVES CONVERSATIONS WHICH CREATE COMMITMENTS WHICH ENABLE ACTIONS WHICH DRIVES RESULTS The root cause of all outcomes (positive and neagtive), are the conversations we (effectively or not) have or don’t have. YOU CAN ONLY INNOVATE FOR THAT WHICH YOU • passion and ownership • lack of commitment • compliance & obligation If you don’t change actions, you can’t change results.
  74. 74. Business Model Generation, Alexander Osterwalder businessmodelgeneration.com }44 The Business Model Canvas Cost Structure Key Partners Key Resources Channels Key Activities Value Proposition Customer Relationships Customer Segments Revenue Streams
  75. 75. PC Customer Experience Waveline ©2014 TechCo. CORPORATION USEEXPLORATION SETUPPURCHASE Experiences + Touchpoints INTENSITY T I M E Ideal Customer Experience The customer is looking for a trusted agent to them through the purchase process. TechCo. can work with channel partners to educated sales staff and deliver consistent collateral and information at the point of sale so there is truth for the customer. The customer has difficulties navigating complex user inter- face. OEM information embed- ded on the computer often looks like marketing materials. TechCo. can help simplify. Answer the questions directly around TechCo. supported and promoted software. Work closely with the OEMs to take ownership of the customers experience at this stage. The customer has difficulties navigating complex user interface. OEM informa- tion embedded on the computer often looks like marketing materials. Tec the sup Wo ow at t The customer is looking for an unbiased opinion about where to turn to find information. TechCo. has an opportunity to provide recommendations and resources that might be valuable. The customer is looking for an unbiased opinion about where to turn to find information. TechCo. has an opportunity to provide recommendations and resources that might be valuable. 1 1 2 3 4 5 6 2 3 4 5 6 Opportunities WiDi once set up allows users to access content on their computer such as downloaded movies and music. It creates a mirror display on your HDTV Ads gets customers excited and peak awareness about new computers and features Windows 8 OS creates curiousity and customers are interested in explor- ing the new technology and how it works with new form factor In Store exploration is used prior to purchase so customers can get a good look and feel for potential options Sales associate often give our conflicint information especially when it comes to WiDi Friends & Family are valued as they provide only opportunity to see, touch, and use a variety of computers before purchase. Program install: Chrome, Adobe Reader, Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed ullamcorper, elit vitae. WiDi is difficult to find out about, unless a friend has it or you come across it on a blog, chances are you won’t find out much about it Google is used to find specific technical information that is not listed on the product display cards, like info on graphics cards, RPM on hard drives, etc. Upgrade from Win8 to Win 8.1 During the install process the drives from were not updated, this caused problems with finding WiDi 1 Segment A WiDi is highly preferred because of ability to do specific searches and serve up applicable, con- textual information. Windows 8 two modes Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae eleifend euismod Internet program install: Chrome, Adobe Reader, Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae. OEM manual is referenced to find the “don’t do’s” A non-functioning or outdated computer prompt users to set out on the discovery process 2 Segment B Google search Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed ullamcorper, elit vitae eleifend euismod 3 Segment C Family ipsum d consect elit. Sed vitae el Friends & Family are valued as they provide only opportunity to see, touch, and use a variety of computers before purchase. OEM websites come with mixed reviews, some see them as marketing while other like to see options vs. pricing tools Product display card were inconsistent in the depth of information between different computers, for others it was a good guide Windows 8 Setup Wizard Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae eleifend euismod Windows 8 two modes Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae eleifend euismod Google allows customers to directly search and find the answers they need, it matches their thinking style Sales Associates often provide misleading, conflicting, or down-right untrue information (with WiDi, for example). When knowledgeable and articulate, though, a sales associate can persuade someone to make a purchase and instill excitement. Wayfinding Signage is often unclear and pro- vides little in the way of helping customers make selections or navigate the space more effectively Google is a common starting spot that helps customers gain an overview of the options avaliable and start navigating the complex ecosystem of the PC Retail visit before purchase test the look and feel of the products, talk to associates about what is new, and check out the selection Google is accessed multiple times to continually refine the search in finding the right match Forums/Reviews are a resource that help provide contextually relevant information and carry a perception of being unbiased as compared to the manufacturer for others it is a necessary evil OEM Packaging can set expectation about the process or the experience the cus- tomer is about start Computer customers are looking for light, sleek, attractive form factor computers. The look and feel can make or break deals Computer customers are looking for light, sleek, attractive form factor computers. The look and feel can make or brake deals Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get OEM SiteOEM Site Google Search Google Search Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Google Search Google Search Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Sales associateSales associate Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Friends & Family Friends & Family Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Friends & Family Friends & Family Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Wonder Truth Beauty Frustration Shock Anxiety & Fear Frustration Meandering Excitem ent Validation Trust Excitem ent Discovery Freedom & Oneness Comfort Computer crashing #5 WiDi confusion #3 Key touchpoints #4 Video #1 #2 Calling store to get information about WiDi #6 Excitement about new computer Video Jim @ 58 minutes Video Jim @ 58 minutes setting up #7 Dragon setup #13 WiDi works #16 Internet Explorer - can’t delete #12
  76. 76. ne CONFIDENTIAL - INTERNAL USE ONLY USESETUPPURCHASE This Waveline provides Te ences felt by customers ov sion of a customer’s comp points along the journey. phases of the journey. Wh this map provides us wit customer’s learn and inter HOW TO READ THIS M LEGEND Ideal Customer Experience The customer is looking for a trusted agent to them through the purchase process. TechCo. can work with channel partners to educated sales staff and deliver consistent collateral and information at the point of sale so there is truth for the customer. The customer has difficulties navigating complex user inter- face. OEM information embed- ded on the computer often looks like marketing materials. TechCo. can help simplify. Answer the questions directly around TechCo. supported and promoted software. Work closely with the OEMs to take ownership of the customers experience at this stage. The customer has difficulties navigating complex user interface. OEM informa- tion embedded on the computer often looks like marketing materials. TechCo. can help simplify and answer the questions directly around TechCo. supported and promoted software. Work closely with the OEMs to take ownership of the customers experience at this stage TechCo. can help simplify and answer the questions directly around TechCo. supported and promoted software. Work closely with the OEMs to take ownership of the customers experience at this stage mer is looking for an opinion about where to d information. TechCo. unity to provide dations and resources be valuable. 3 4 5 6 7 8 3 4 5 6 7 8 WiDi once set up allows users to access content on their computer such as downloaded movies and music. It creates a mirror display on your HDTV Friends & Family are valued as they provide only opportunity to see, touch, and use a variety of computers before purchase. Program install: Chrome, Adobe Reader, Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed ullamcorper, elit vitae. WiDi trying to find WiDi and set it up is extremely difficult for users Google is used to find specific technical information that is not listed on the product display cards, like info on graphics cards, RPM on hard drives, etc. Upgrade from Win8 to Win 8.1 During the install process the drives from were not updated, this caused problems with finding WiDi Windows 8 two modes is highly preferred because of ability to do specific searches and serve up applicable, contextual information. 1 Segment A WiDi is highly preferred because of ability to do specific searches and serve up applicable, con- textual information. Windows 8 two modes Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae eleifend euismod Internet program install: Chrome, Adobe Reader, Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae. OEM manual is referenced to find the “don’t do’s” 2 Segment B Internet program install: Chrome, Adobe Reader, Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae. Forum Tips and Ticks Family & Friends Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed ullamcorper, elit vitae eleifend euismod 3 Segment C Opportunities Friends & Family are valued as they provide only opportunity to see, touch, and use a variety of computers before purchase. Product display card were inconsistent in the depth of information between different computers, for others it was a good guide Windows 8 Setup Wizard Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae eleifend euismod Windows 8 two modes Lorem ipsum dolor sit amet, consectetur adipi- scing elit. Sed ullamcor- per, elit vitae eleifend euismod Google allows customers to directly search and find the answers they need, it matches their thinking style YouTube provides customers with a visual walk through of how to accomplish basic to complex task without contacting the OEM Sales Associates often provide misleading, conflicting, or down-right untrue information (with WiDi, for example). When knowledgeable and articulate, though, a sales associate can persuade someone to make a purchase and instill excitement. Wayfinding Signage is often unclear and pro- vides little in the way of helping customers make selections or navigate the space more effectively ssed to ine inding h Forums/Reviews are a resource that help provide contextually relevant information and carry a perception of being unbiased as compared to the manufacturer for others it is a necessary evil OEM Packaging can set expectation about the process or the experience the cus- tomer is about start Computer customers are looking for light, sleek, attractive form factor computers. The look and feel can make or break deals Computer customers are looking for light, sleek, attractive form factor computers. The look and feel can make or brake deals Google Search Google Search rt Guide is used by the as a resource ure the proper eing followed mputer set up. It rough the perly to get Sales associateSales associate Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Friends & Family Friends & Family Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Friends & Family Friends & Family Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Brick and MortarBrick and Mortar Quick Start Guide is sometime used by the customer as a resource to make sure the proper sets are being followed to get computer set up. It is going through the steps properly to get Truth Beauty Freedom Anxiety & Fear Frustration Meandering Boredom Trust Excitem ent Discovery Freedom & Oneness Comfort Key touchpoints #4 TechCo. WiDi details #10 #2 Calling store to get information about WiDi #6 Excitement about new computer Video Jim @ 58 minutes Video Jim @ 58 minutes setting up #7 Win8 two modes #9 Learning styles #14 Dragon setup #13 Spoiled by Apple TV #11 WiDi works #16 Internet Explorer - can’t delete #12
  77. 77. INTEGRATED BOTTOM LINE
  78. 78. Stage 0: Unsustainable “Business as Usual” Stage 1: Exploration Stage 2: Experimentation Stage 3: Leadership Stage 4: Restoration High degree of organizational alignment Stakeholders & CommunitiesGovernance and Management Operations and Facilities Design and Process Innovation Human Resources and Corporate Culture Marketing and Communications Partnerships and Stakeholder Engagement
  79. 79. MBA IN DESIGN STRATEGY MBA IN STRATEGIC FORESIGHT MBA IN CIVIC INNOVATION
  80. 80. Strategic Focus Corporate Meaning Priorities Team & Partner Meaning Priorities Customer Meaning Priorities Competitors’ Meaning Priorities MEANING STRATEGY
  81. 81. DESIGN THINKING DESIGN RESEARCH “NEW BUSINESS” NEW LEADERSHIP SYSTEMS THINKING SUSTAINABILITY
  82. 82. Nathan Shedroff Chair, Design MBA Programs California College of the Arts nathan@nathan.com @nathanshedroff designmba.cca.edu
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