The Design Thinking and Values for future company strategy

1. What’s New Power & Create Economic Value By Design
Under Current Trend

2. Company Introduction – Tung Fat Ho Building Material Ltd
 Found in 1950s
 Architectural Ironmongery distributor and risk consultancy
 Provide consulting services in combing various type of ironmongery
products subject to fire & building regulations and also client’s
requirements
 Major clients : Architect & Interior Designer

3. Company Introduction
 TFH provides whole-door solution packages to suit each
client, often right down to the documentation for the entire
key system.

5. Which Two Theories are Common
used by Business Consultancy?

6.  Michael Eugene Porter
 Five Competitive Forces that Shape Strategy
 Tim Brown
 Design Thinking

7. Design Thinking
Empathize
Define
Ideate
Prototype
Test
Design a prototype
(or series of
prototypes) to test
all or part of your
solution
Brainstorm potential
solutions; select and
develop your
solution
Engage
in a
continuous short-
cycle innovation
process to
continually improve
your design
Develop a deep
understanding of
the challenge
Clearly articulate
the problem you
want to solve

8. What is happening Now?

9.  Yellow Umbrella Movement 2014
Citizens suspicious on government
 Brexit = “British exit” 23 Jun 2016
 UK’s referendum to leave the European Union
(EU)
Government

10. Citizens distrust traditional media
Media

11. NGO Corporation
Citizens suspicious on NGO Hong Kong Red Cross
Citizens angry over Link Reit

12. Why is it happening?

13. Before Internet Era
 People receive information or data mainly from 4
traditional institutions (Old Power)
 People trust them
Government Media
NGOs
Corporation

14. Internet and Smartphone Era (2008)
 More people use
Smartphone, even elderly,
people obtain different kind
of information more easily
 What happen in
2008??
 Steve Jobs
Iphone3
 In 2013, Xiaomi
smartphone &
development of social
media

15. Declining Trust in Old Institutional Power
 Everyone access data through internet easily & have own set of thinking & belief

16. Global Trend
 Social Polarization
 Low level of Trust toward old power
 Expectation for Transparency
 Ethical Consumerism & Sustainable Investment
 A Thirst for Purpose: how the company makes a positive impact on the
world through its products, services and operations

17. Shifting Power in the world:
Old Power  New Power
Jeremy Heimans & Henry Timms

18. Two Dimension Framework of Power
Traditional
Consumption
Sharing other
people’s content/
ideas
Remixing or
Adapting content/
ideas
Crowd-funding /
“Endorsing with
Money”
Creating /
delivering content/
assets within a peer
community
Having partial/
complete
ownership in
content or assetsConsuming
Sharing
Shaping
Funding
Production
Co-owning
Old Power
Model
New Power Model by Jeremy
Heimans & Henry Timms
Model

19. Two Dimension Framework of Power
 Managerialism, institutionalism, representative
governance
 Exclusivity, competition, authority, resource
consolidation
 Discretion, confidentially, separation between
private & public spheres
 Professionalism, specialization
 Long-term affiliation & loyalty, less overall
participation
Old Power Value
 Informal, opt-in decision making, self-organization,
networked governance
 Open source collaboration, crowd wisdom, sharing
 Radical transparency
 Do-it-ourselves, “make culture”
 Short-term, conditional affiliation, more overall
participation
New Power Value
by Jeremy Heimans & Henry Timms
Value

20. Four Strategic Positioning
 Connectors
 Castles
 Crowds
 Cheerleaders
OldPowerModelNewPowerModel
Old Power Values New Power Values
Any SME

21. Growth by Positioning Shift
 Connectors
 Castles
 Crowds
 Cheerleaders
OldPowerModelNewPowerModel
Old Power Values New Power Values
For start new business
only

22. How to Create Economic Value by Design?

23. John Heskett - Create Economic Value By Design
 John Heskett (1937-2014)
 Chair Professor of Design at the School of Design, Hong Kong
Polytechnic University
 Research focused on business application for design, how design
creates economic value, relationship between design and
innovation, problems of designing for global markets
 Published books: Industrial Design (1980), German Design 1870-
1918 (1987), Design in Everyday Life (2002), Design: A Very Short
Introduction (2002), Design in Hong Kong (2004)

24. OSM
Original Strategy
OBM
Original Brand
Manufacture
ODM
Original Design Manufacture
OEM
Original Equipment Manufacture
Create Economic Value By Design
Can Do
Know How
Sign
Stay

25. Value Creation: 10 Types of Innovation (TFH)
Operation Design Thinking Design
 TFH: Promote Hong Kong
creative industry to
international
Create Economic
Value By Design

26. Herman Miller Tung Fat Ho Building Material Ltd
Corporate Identity
a) Mission

27. Herman Miller Tung Fat Ho Tung Fat Ho Building Material Ltd
Corporate
Identity
b) Vision
Design Thinking

28. How about Apple?

29. Four Strategic Positioning
 Connectors
 Castles
 Crowds
 Cheerleaders
OldPowerModelNewPowerModel
Old Power Values New Power Values
Any SME

30. Success by designed value creation
 “make culture” of its App Store

31. Summary
 Increasing political protest, crisis in representation & governance, & upstart business upending
traditional industries
 Declining trust in old institutional power – Government, Business, NGO, Media
 Rise of new power, power is shifting in the world
 Old power works like a currency, based on traditional consuming
 New power works like current, based on participation, collaboration and transparency
 Old power model is consuming; New power model is sharing, shaping, funding, production and co-
owning
 Challenge for company to reconsider their strategy positioning: shift to new power?? Go “bilingual” –
developing both old & new power capacities??
 Economic growth by designed value creation

33. Two Theories – Michael E. Porter’s Five Forces
 Michael Eugene Porter (born 23 May 1947)
 Bishop William Lawrence University Professor at Harvard Business
School
 Leading authority on company strategy, the competitiveness of
nations and regions, and strategy approaches to societal problems
 Author of 19 books and over 125 articles
 Key frameworks & concepts: The Five Forces, Strategic Positioning,
The Value Chain, Creating Shared Value, The Diamond Model etc.

34. Rivalry Among
Existing Competitors
Threat of New
Entrants
Bargaining Power of
Buyers
Bargaining Power of
Suppliers
Threat of Substitute
Products/ Services
 Michael E. Porter’s Five Competitive
Forces that Shape Strategy
Two Theories – Michael E. Porter’s Five Forces

35. Two Theories – Design Thinking
 Tim Brown
 Designer
 CEO & president of innovation and design firm IDEO
 Advise senior executives and boards of global Fortune 100
companies
 Key concepts: Design Thinking, Design for Action, Power of
Design and Master of Design etc.

36. Old Power V.S New Power
 Like Currency , held by few
 Once gain, it is jealously guarded
 Is closed, inaccessible, & leader-driven
 Is downloads & captures
 Like Current, made by many
 Goal of new power channel it
 Is open, participatory & peer-driven
 Is uploads & distributes
Old Power New Power

37. Why Apple is so successful?