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Service Design Drinks | Future of Digital Business

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This edition of Service Design Drinks was on 'The Future of the Digital Business: Transformations are everywhere, but how might we put sustainability at the heart of them to avoid creating old worlds on new platforms?'

Mike Tiffany is a strategic design consultant with 20 year’s experience leading, developing and coaching teams and individuals in consultancies, agencies, and large organizations. Recently he has been guiding clients on their transformation journey and encouraging them to think more holistically about their product design practices.

This edition of the Service Design Drinks was hosted and sponsored by our technologist friends from ThoughtWorks in their space in Mitte.

Published in: Business
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Service Design Drinks | Future of Digital Business

  1. 1. Service Design Berlin T H O U G H T W O R K S / A U G U S T 2 1 , 2 0 1 9 The Future of Digital Business
  2. 2. Katrin Senior Lead Consultant, ]init[ Who is inviting? Mauro Service Design Director, Designit Martin Head of Service Design, UK Gov Manuel Creative Lead, Fuxblau
  3. 3. Activities of Service Design Berlin Service Design Drinks Service Experience Camp The Service Gazette
  4. 4. Christian Rudolph Circular Economy Julian Kea Hands, Minds & Bricks! Maria Izquierdo Martin Jordan Data & Services Dr. Katrin Dribbisch Design Thinking in Public Administration Aino Hanttu Beyond the holodeck: Creating Next-Gen Experiences Kara Kane Designing communities Michel Tofahrn Michael Tjupalow Public Services Adam Lawerence Jessica Pole Dr. Katrin Dribbisch Scaling Communities March April May June July September October November 2017 Service Design Drinks - Beyond Service Design
  5. 5. 2018 Service Design Drinks - Cases & Learnings Audrey Liehn Timo Kuske Wild Days of Implementation Si-Labs April May July Isabell Fringer Gregor Finger Prototyping Spatial UX Lab1886 Manuel Grossmann Olga Scupin The value of low budget projects J2C
  6. 6. 2019 Service Design Drinks - The Future of… February May Abigail Golestanian Eva Hernando Mireia Pumarola The Future of Healthcare Fjord Franzeca Terzi The Future of Finances Goodpatch July Bastian Boss The Future of Cities Futurice
  7. 7. Who’s hosting?
  8. 8. What’s the agenda? Input Exercise Mingling
  9. 9. Who’s talking? Mike Tiffany Strategic Design Consultant ThoughtWorks
  10. 10. DRIVING THE FUTURE OF DIGITAL BUSINESS
 Mike Tiffany, ThoughtWorks Photo by timJ on Unsplash
  11. 11. FUTURE OF BUSINESS THE CHALLENGES I HOPE WE CAN EXPLORE THE FUTURE TOGETHER THE SOLUTIONS We’ll understand why the future of business is circular We’ll explore the challenges we encounter driving change We’ll generate ideas & solutions that build tools to drive greater influence
  12. 12. 5,000+ Employees 14 Countries 41 Offices 25 Years ABOUT THOUGHTWORKS
  13. 13. “Our mission is to better humanity through software and help drive the creation of a socially and economically just world.” ...about ThoughtWorks
  14. 14. Pre- 2010
 Technology as a service to organisations Future 
 Technology at the 
 core of modern digital business. 2017-18
 Business functions 
 aligned to technology TECH BUSINESS BUSINESS TECH BUSINESS TECH TECHNOLOGY AT THE CORE OF ORGANISATIONS
  15. 15. 17 FROM DESIGNING INTERACTIONS TO DESIGNING ORGS In the last 10 years, even the most creative orgs challenged by new digital platforms
  16. 16. 18 BERLINLONDON
  17. 17. “...You lied to us. 
 You gave us false hope. You told us that the future was something 
 to look forward to.” Greta Thunberg, 16 year old Environmental Activist
  18. 18. THE FUTURE WILL BE CIRCULAR
  19. 19. A circular economy (often referred to simply as "circularity") is an economic system aimed at eliminating waste and the continual re- use of resources. ...https://en.wikipedia.org/wiki/Circular_economy
  20. 20. TOP DOWN
 Recognition spreading from economists to CEOs that economy & environment 
 can’t be separate. COSTS INCREASE
 Resource instability increases the value of circularity for many companies. COMMERCIAL GAIN
 Greater commercial value, two sources: ● Sourcing - supply chain efficiencies ● Indirect - new demand from changing customers 1 THREE BUSINESS INCENTIVES
  21. 21. NOT A NEW IDEA, BUT ONE GAINING IN AWARENESS 1972
 Limits to Growth Club of Rome Donella Meadows 2017 IDEO Publish Circular Design Guide 1989
 David Pearce, Kerry Turner: Environmental Economists 
 coin the term ‘Circular Economy’ 
 2010 Ellen McArthur Foundation Established 2017
 World Bank CEO Guide 2017
 World 
 Bank Practitioner
 Guide 2015 
 CE 100 Report
 Ellen McArthur Foundation & McKinsey 
 Google Trends line for term ‘Circular Economy’
  22. 22. BIOLOGICAL Design incorporates materials that contribute back to the environment in some way. TECHNICAL Design for long life 
 and re-use. https://www.ellenmacarthurfoundation.org/explore/make-a-circular-economy-pitch-in-your-organisation
  23. 23. 25 LINEAR ECONOMY
 Designed to use materials that can’t be recycled, the business model includes obsolescence. Nothing is easily repairable. CIRCULAR ECONOMY
 Designed to be energy efficient inuse, repairable, business model is designed around durability or service, product life is as long as possible and can be upgraded. CIRCULAR IN PRACTICE - TECHNICAL FLOWS
  24. 24. EMBRACING CIRCULAR MODELS - eg. IKEA ‘SELL BACK’ IKEA introduces a furniture sell- back service in Australia and Canada, customers recycle their unwanted furniture and are rewarded. 
 The IKEA Family based service enables customers to exchange used items for IKEA vouchers. 
 
 Customers able to buy pre-loved IKEA furniture at a fraction of the original price. https://ikeafamily.ca/en/sell-back
  25. 25. BIOLOGICAL Design incorporates materials that contribute back to the environment in some way. TECHNICAL Design for long life and re- use. OPPORTUNITY FOR LEADERSHIP AS CONSULTANTS AND SERVICE DESIGNERS https://www.ellenmacarthurfoundation.org/explore/make-a-circular-economy-pitch-in-your-organisation
  26. 26. TECHNOLOGY SHOULD DO MORE, BUT... Cultural challenge which suggests no limits to 
 growth. System which values speed over efficiency 
 = increases waste Data centres used more 
 electricity last year than whole UK (tripled by 2029) Massive increase in consumption resulting
 from ecommerce
  27. 27. "This ongoing irresponsible behavior will no doubt be remembered in history as one of the greatest failures of humankind." Greta Thunberg, 16 year old Environmental Activist
  28. 28. WHAT 
 ARE THE CHALLENGES?
  29. 29. 1. WE MISUNDERSTAND ORGANISATIONS
 Origins of lean startup and agile are all based on short term growth, less emphasis on understanding org culture 3. WE DON’T SEEK TO CHANGE THE SYSTEM 
 Focus on small improvements rather than tackling and optimising leverage across systems and cultures THREE CHALLENGES WE FACE DRIVING ADOPTION OF THE CIRCULAR ECONOMY WITH TECHNOLOGY CLIENTS 2. WE DON’T USE TOOLS THAT ARE MORAL 
 They consider only commercial (User) & commerce (Business)
  30. 30. CHALLENGE 1.
 
 WE FREQUENTLY MISUNDERSTAND
 HOW FORESIGHT, GOVERNANCE AND CULTURE SHAPE ORGANISATIONS.By dismissing the value of existing structures in obtaining strategic foresight and governance we hinder our own ability to influence.
  31. 31. WE ENCOUNTER MANY ORGANISATIONS FUNCTIONAL …organised around functional aspects of how the business operates PRODUCT …organised around the 
 products an organisation creates MARKET …organised around the markets an organisation serves
  32. 32. BUT, WHERE SOMETIMES WE SEE ONE TYPE 
 OF ORGANISATION, OTHERS SEE MANY MORE TYPES. MACHINE - eg. Functional, Product or Market but also... ORGANISM - eg. Stafford Beer’s Viable System Model CULTURE - eg. most charities POLITICAL SYSTEM - eg. Civil Service SYSTEM OF CHANGE AND FLUX -eg. Modern software orgs, G.A.F.A. INSTRUMENT OF DOMINATION -eg. BP, ExStrata, East India Company Gareth Morgan’s Images of Organization
  33. 33. CONSEQUENTLY, ATTEMPTS TO 
 SCALE AGILE SOFTWARE DELIVERY HAVEN’T ALWAYS BEEN SUCCESSFULDespite a plethora of snappy spounding and promising methodologies. eg. SaFE, DaD, LeSS We sometimes assume all organisations want
 to move from HIERARCHIES to SYSTEM OF CHANGE AND FLUX Pat Kua documents the pro’s and cons of types of scaled agile on his blog
 https://www.thekua.com/atwork/2018/07/flavours-of-agile/ © Big Cheese Photo - ThinkstockPhotos
  34. 34. OUR BIASES AND BUSINESS MODELS SOMETIMES 
 INHIBIT OUR ABILITY TO DRIVE CIRCULAR CHANGE INFLUENCE EXECUTIVE 
 Models and Precedents 
 eg. C-suite consultants INFLUENCE WITH PROCESS Delivery of Software or Campaigns
 eg. Software delivery consultants 
 INFLUENCE WITH DATA Data driven Purchasing & Predictions
 eg. Accounting consultants All these influencers 
 are shaped by their own cognitive biases,
 beliefs and business models. Examples include - Authority bias - Self-Serving bias - Precedent bias
  35. 35. RESPONSIVE ORGANISATIONS
 All organisations should become value based to be successful. Product mindset and agility are paramount. 
 MODERN DIGITAL BUSINESS 
 - DIGITAL FLUENCY MODEL
 Ambition, desire and ability are as influential as methods.
 OPERATING 
 MODEL PLATFORM STRATEGY EXPERIENCE DESIGN AND PRODUCT CAPABILITY INTELLIGENCE DRIVEN DECISION MAKING FROM TO ENGINEERING CULTURE, DELIVERY MINDSET WE’RE ONLY BEGINNING TO RESPOND TO THIS
  36. 36. 
 CONCLUSION We’re still at the early stages of 
 understanding how to influence organisations, our business models and biases often obscure our view. Photo: by Headway on Unsplash
  37. 37. CHALLENGE 2. 
 TOOLS AND PROCESS DONT INCORPORATE MORAL FACTORS “One cannot have superior science and inferior morals, the combination is unstable and self- destroying.” Arthur C Clarke Photo: Arthur C Clarke
  38. 38. Why should you bother about consequences 
 (e.g. ethical, legal, and social implications)? Duty-based 
 (Deontological ethics) Results-based 
 (consequentialism) The philosophy of ethics is about systematizing, defending, & recommending concepts of right and wrong conduct. Ethics can be viewed from three lenses: # Virtue Ethics the character and habits of the actor, cf. virtues vs. continence and practical wisdom # Deontology rightness or wrongness of actions themselves # Consequentialism rightness or wrongness of the consequences of those actions 40Source: https://uxdesign.cc/designing-ethically-pt-1-9800bfbc86a3 | https://en.wikipedia.org/wiki/Normative_ethics 
 RESULTS What consequences 
 might our
 solution have? 
 INTENT Is this problem 
 worthy of fixing? ETHICS?
  39. 39. morality = concern for the welfare of others 
 Because the tools used to design technology and business are amoral, technology can easily be exploited and result in harm. Simple code ALL ETHICS is about relationship to others, if it doesn't EXPLICITLY include this it is amoral. 41 HOW MIGHT TOOLS BE MORAL? Photo by reference Craig Walmsley https://twitter.com/craig_walmsley Photo: Kelly Sikkema on Unsplash
  40. 40. The value tree is amoral, it lacks concern for
 the needs and 
 views of others. PROBLEM IS INHERENT IN THE WAY WE USE VALUE BASED TOOLS AND DESIGN.
  41. 41. 
 CONCLUSION Do we need to evolve the tools used to design business and technology away from Lean and Agile towards a more holistic view of the impact of our work? Photo by Headway on Unsplash Photo: Lean Value Tree in Practice
  42. 42. CHALLENGE 3.
 GOING FASTER IN THE EXISTING SYSTEM WILL JUST CREATE 
 GREATER CHALLENGES FOR ALL Because we work within the existing system, we inherit the assumptions that create that system. 
 If we’re genuinely to develop and grow, do we need to change the system?
  43. 43. Speed brings
 lack of depth, 
 we react to events, 
 but can’t easily change assumptions 
 and beliefs. Workshops are too brief and focussed in which to do this. source: https://www.academyforchange.org/
  44. 44. 9. Constants, parameters, numbers (subsidies, taxes, standards). 8. Regulating negative feedback loops. 7. Driving positive feedback loops. 6. Material flows and nodes of material intersection. 5. Information flows. 4. The rules of the system (incentives, punishments, constraints). 3. The distribution of power over the rules of the system. 2. The goals of the system. 1. The mindset or paradigm out of which the system — its goals, power structure, rules, its culture — arises. AS TECHNOLOGISTS, WE CONCENTRATE ON THE LEAST EFFECTIVE INTERVENTIONS IN SYSTEMS LEAST MOST http://donellameadows.org/archives/leverage-points-places-to-intervene-in-a-system/
  45. 45. 9. Constants, parameters, numbers (subsidies, taxes, standards). 8. Regulating negative feedback loops. 7. Driving positive feedback loops. 6. Material flows and nodes of material intersection. 5. Information flows. 4. The rules of the system (incentives, punishments, constraints). 3. The distribution of power over the rules of the system. 2. The goals of the system. 1. The mindset or paradigm out of which the system — its goals, power structure, rules, its culture — arises. TO DESIGN AMBITIOUS SYSTEM CHANGE... http://donellameadows.org/archives/leverage-points-places-to-intervene-in-a-system/ LEAST MOST
  46. 46. Is the key to changing the culture and mental models changing the stories we value? GOV.UK was as a successful transformation because of the human stories told, as much 
 as the technology and process applied 
 The current capitalist system rewards; individualism & risk taking, problem is this infects the culture further, how might we reward other things such as psychological safety, steady progress, focussed effort? THIS IS A CULTURAL STRUGGLE Photo by Heather Ford on Unsplash Shift from how can I to how can we
  47. 47. Photo by Heather Ford on Unsplash CONCLUSION To drive change, in time, do we need stories which get at the heart of culture? 
 
 - Not start-ups and risk takers, but combined efforts in safe environments towards a shared goal. Photo by Annie Spratt on Unsplash
  48. 48. "Sometimes we just simply have to find a way... And I’m sure that the moment we start behaving as if we were in an emergency, we can avoid climate and ecological catastrophe.”
  49. 49. WHAT 
 ARE THE SOLUTIONS?
  50. 50. “The scarcest resource is not oil, metals, clean air, capital labour or technology. It is our willingness to listen to each other and learn from each other and to seek the truth rather than to be right” Donella Meadows
  51. 51. 
 
 
 HMW… Incorporate greater understanding of organisations in our work? So that are visionary in our own businesses, and gain greater influence with our clients. 
 
 
 HMW...Develop tools that incorporate a moral component? 
 
 So that we make technology an design choices mindful of the needs of others? 
 HMW… Change the system to drive a cultural shift that reflects our reality? 
 
 So that we set our clients up for sustained success that doesn't come at the expense of others? SO, LET’S WORK IN GROUPS TO FIND A WAY
  52. 52. 
 
 DO ONE THING? Encourage your clients, and leadership in organisations, to look beyond the commercial, and the commerce to the consider the externalities and future possibilities! Think in Systems, not just Products or Services
  53. 53. THANK
 YOU
  54. 54. Thinking in Systems a Primer 
 - Donella Meadows & Diana Wright 
 https://wordery.com/thinking-in-systems-donella-h- meadows-9781603580557
 Places to Intervene in a System - Donella Meadows http://donellameadows.org/archives/leverage-points-places-to-intervene-in- a-system/
 Conscious design manifesto and principles - Will Anderson and Karwai Ng
 https://medium.com/@willwai/conscious-design-manifesto-and-principles-a- will-wai-perspective-203b47cdb629 Flavours of Agile - Pat Kua https://www.thekua.com/atwork/2018/07/flavours-of-agile/ SELECT REFERENCES EDGE: Value-Driven Digital Transformation - Jim Highsmith, Linda Lui & others 
 https://www.oreilly.com/library/view/edge-value-driven-digital/9780135263617/ Scaling Lean - Ash Mayura 
 https://www.amazon.co.uk/Scaling-Lean-Mastering-Metrics-Startup/dp/ 1101980524 Ellen Macarthur foundation https://www.ellenmacarthurfoundation.org/
  55. 55. Jobs?
  56. 56. See you in Sept! servicedesignberlin.de @SD_Berlin fb.com/servicedesignberlin

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