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Amit Pande, Oracle Deepa Bachu, Intuit Nov 25, 2007 User Friendly 2007, Beijing, China Creating a culture of distributed design innovation

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A few housekeeping notes <ul><li>Slides for this workshop will be available at http://www.slideshare.net/amitpande/ </li></ul><ul><li>Blog for continuing discussions on this topic – http://distributedinnovation.wordpress.com </li></ul><ul><li>You should each have a file folder which contains </li></ul><ul><ul><li>Slide handouts </li></ul></ul><ul><ul><li>Workshop design exercise </li></ul></ul><ul><ul><li>Additional reference material </li></ul></ul>

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Workshop schedule 10:15 - 11:00 am Session 3: Innovation framework: People, Process, Product 11:00 - 11:30 am Group exercise: Create a solution for an opportunity in your marketplace using the Innovation framework 11:30 am – 12:00 pm Analysis of group exercise – map and discuss solutions 12:00 – 12:30 pm Wrap-up and next steps 10:00 – 10:15- am BREAK 9:30 – 10:00 am Session 2: Implications, challenges of distributed design innovation 9:00 – 9:30 am Segment 1: Global trends and context of distributed design innovation 8:30 – 9:00 am Workshop overview and audience introductions

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Workshop overview and format <ul><li>Work together to understand how to harness opportunities of distributed design innovation </li></ul><ul><li>Specific focus o n </li></ul><ul><ul><li>Understanding distributed design innovation </li></ul></ul><ul><ul><li>Tapping new market needs </li></ul></ul><ul><ul><li>Emerging markets </li></ul></ul><ul><li>3 segments in today’s workshop (About 1 hour each) </li></ul><ul><ul><li>Context of globalization and Distributed Design Innovation </li></ul></ul><ul><ul><li>Understanding challenges of Distributed Design Innovation </li></ul></ul><ul><ul><li>Developing a framework for Distributed Design Innovation </li></ul></ul><ul><li>Hands on exercise </li></ul>

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Introductions <ul><li>About us </li></ul><ul><li>Who you are what you do </li></ul><ul><li>Your specific interest in this workshop </li></ul><ul><li>The o ne thing you seek to takeaway from today </li></ul>

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Segment 1: Key global trends and context of Distributed Design Innovation

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Emerging markets driving global economy <ul><li>Fortune magazine states that one-third of GM’s global auto profits come from China, even though it has only 12 percent of the Chinese market </li></ul><ul><li>China and India remain fastest growing telecom markets for a while </li></ul>

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Technology creation getting more global <ul><li>R&D spending by Fortune 500 companies has increased significantly in emerging markets </li></ul><ul><li>R&D spending goes beyond cost-based outsourcing – Focus on product design, product development and other value added activities </li></ul><ul><li>… 24 Chinese firms made it to Fortune Global 500 in 2007, so did 6 Indian firms. </li></ul>Source: http://www.strategy-business.com/media/image/06405-ex_03.gif

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Technology footprint increasing in region <ul><li>100 of the Fortune 500 companies have R&D facilities in India. Similar numbers have facilities in China </li></ul><ul><li>In addition, many Asian tech companies growing exponentially </li></ul>

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Talent pool getting distributed <ul><li>By 2010, China and India combined will graduate 12 times the number of engineers, mathematicians, scientists and technicians as the US </li></ul><ul><li>China and India have contributed the largest number of foreign students to North America for 7 years in a row </li></ul>

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Specifically, design talent getting global <ul><li>Asia continues to rise as a strategic design hu b </li></ul><ul><li>10 schools now in Asia in top 50 global design schools </li></ul><ul><li>After success of Japan, Korea, Singapore – China and India gradually creating design footprint </li></ul>Source: Business Week - http://images.businessweek.com/ss/07/10/1005_dschools/source/1.htm

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Putting together these trends <ul><li>Technology consumption is getting global and fragmented </li></ul><ul><ul><li>Millions of new end users in emerging markets </li></ul></ul><ul><ul><li>Strong demand for hardware, software and services </li></ul></ul><ul><ul><li>New platforms and new business models. E.g.: Mobile payments </li></ul></ul><ul><li>Technology production is getting distributed and global </li></ul><ul><ul><li>Talent pool of thousands of technologists, scientists, designers spread across key international locations </li></ul></ul><ul><li>Competition and opportunities are both global and local </li></ul><ul><ul><li>Fortune 500 companies have captive centers in India, China </li></ul></ul><ul><ul><li>Small and local startups are creating new niche segments </li></ul></ul>

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<ul><li>Within this complex landscape, some companies are using distributed design innovation as a key competitive strategy and creating new market opportunities… </li></ul><ul><li>Some examples </li></ul><ul><ul><li>Nokia </li></ul></ul><ul><ul><li>Babajob.com </li></ul></ul><ul><ul><li>Apple </li></ul></ul>What do these trends mean for us?

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Nokia <ul><li>200 million sales worldwide since its launch in 2003 </li></ul><ul><li>More than iPod, RAZR, Chocolate, PS2 in numbers </li></ul><ul><li>Highest uptake in emerging markets </li></ul><ul><li>Dust proof with flashlight </li></ul><ul><li>No color display </li></ul>

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Babajob <ul><li>Connects India’s elites to the people who need jobs but lack the connections to find them </li></ul><ul><li>Maids, cooks, chauffeurs, carpenters, other workers </li></ul><ul><li>Job seekers advertise skills, employers advertise jobs and matches are made through social networks. </li></ul>

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Apple Source: http://slideshare.net

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What’s common in th ese 3 stories? <ul><li>Apple – Breakthrough User experience, Industrial Design and good marketing </li></ul><ul><li>Babajob – Specific and local business model for unmet user needs </li></ul><ul><li>Nokia – Unique value added features for developing markets </li></ul><ul><li>In all these cases, distributed design innovation was a key differentiator for market success … </li></ul>

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Segment 2: Understanding Distributed Design Innovation and its challenges

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A reality check on design innovation <ul><li>Despite the outliers mentioned earlier, many Fortune 500 companies and local start-ups focus only on cost advantages (‘outsourcing’) </li></ul><ul><li>Engineering and design talent in emerging economies often focused on global (US/Europe centric) end user needs </li></ul><ul><li>However, as emerging markets drive global business, engineers and designers in China/India are beginning to focus on improvements, and new product innovation </li></ul><ul><li>Emerging (BRIC) market consumers seek relevant products and services – but not enough exist. Millions of unmet user needs remain. </li></ul><ul><li>Imagine the market potential of innovations such as Skype or Facebook or Google Phone for emerging markets!! </li></ul>

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Points to consider <ul><li>While innovation is easy in principle, it is difficult in practice </li></ul><ul><li>Most companies are either 500 lb gorillas or small fishes – bound by size or available resources </li></ul><ul><li>Global multi-sourcing not easy – designers, software engineers, product managers talent spread across locations </li></ul><ul><li>Product development approaches and existing products in one location do not always work well in another </li></ul><ul><li>End user needs are very complex and sophisticated – users in urban China or rural India have different needs/aspirations </li></ul><ul><li>Dealing with different cultures, new end users, and working/thinking processes makes distributed design innovation difficult !! </li></ul>

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However, distributed design innovation presents unique opportunities <ul><li>Rare opportunity to benefit from few untapped global markets </li></ul><ul><li>All necessary conditions for the ‘Perfect Storm’ </li></ul><ul><ul><li>Large base of designers and technologi sts </li></ul></ul><ul><ul><li>Dynamic and rapidly growing local markets till 2030 </li></ul></ul><ul><ul><li>Presence of large companies, consultancies, free wheeling talent </li></ul></ul><ul><li>However .. </li></ul><ul><ul><li>Above Ingredients in themselves not sufficient </li></ul></ul><ul><ul><li>Distributed innovation is fraught with risks and pitfalls </li></ul></ul><ul><ul><li>Need proven and simple structures and methods to implement distributed design innovation in your organizations </li></ul></ul>

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<ul><li>Audience feedback on your main obstacles to distributed design innovation </li></ul><ul><li>Share stories in pairs </li></ul><ul><li>Some sample innovation killers </li></ul><ul><ul><li>People did not see it coming </li></ul></ul><ul><ul><li>Executive management tunnel visioning </li></ul></ul><ul><ul><li>Product was commoditized, undifferentiated </li></ul></ul><ul><ul><li>Did not understand the market or real consumer needs </li></ul></ul><ul><ul><li>Product was before it’s time </li></ul></ul><ul><ul><li>Product was a solution in search of a problem </li></ul></ul><ul><ul><li>Customer need was not clearly understood </li></ul></ul>Group brainstorming exercise

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Segment 3: Developing a framework for Distributed Design Innovation

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Framework for Distributed Design Innovation People Process Product I Innovation Framework

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Framework for Distributed Design Innovation People Process Product I Innovation Framework

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Framework for Distributed Design Innovation: People <ul><li>People are the foundational basis of success in Distributed Design Innovation activities </li></ul><ul><li>What to look for when hiring a distributed design team </li></ul><ul><ul><li>Leverage global pool of talent through local ecosystems </li></ul></ul><ul><ul><li>Few core skills - creative engineers, tech savvy designers, thought leaders </li></ul></ul><ul><ul><li>Well rounded, passionate, pro-active individuals </li></ul></ul><ul><ul><li>Both out-of-box and in-the-box thinking </li></ul></ul><ul><ul><li>Motivated, engaged, who will fit socially in your organization </li></ul></ul><ul><ul><li>Individuals who want to understand the problem they’re solving </li></ul></ul><ul><ul><li>Diverse backgrounds and cultures, interests and experience </li></ul></ul><ul><ul><li>Those who savor surprises, emergence, and flexibility </li></ul></ul>I

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Framework for Distributed Design Innovation: People <ul><li>How to engage and retain people in emerging markets </li></ul><ul><ul><li>Treat people as peers, not resources </li></ul></ul><ul><ul><li>Build trust, keep reinforcing trust </li></ul></ul><ul><ul><li>Balance face to face and virtual team work </li></ul></ul><ul><ul><li>Reward people meaningfully </li></ul></ul><ul><ul><li>Research shows that after 1 year, performance starts dipping </li></ul></ul><ul><ul><ul><li>Consider job rotation within innovation roles </li></ul></ul></ul><ul><ul><ul><li>Consider moving staff across offices </li></ul></ul></ul><ul><ul><li>Dedicate someone to care & nurturing of virtual team </li></ul></ul><ul><ul><li>Invest in engaging and inspiring workplaces </li></ul></ul>I

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Framework for Distributed Design Innovation: People <ul><li>Key roles within innovation – Your team should have a mix of skills </li></ul><ul><ul><li>Understand problems worth solving for your business </li></ul></ul><ul><ul><ul><li>Observe and absorb customer requirements for new products </li></ul></ul></ul><ul><ul><ul><li>Feed forward and feed back with customers in the field </li></ul></ul></ul><ul><ul><li>Generate ideas that solve the problem </li></ul></ul><ul><ul><ul><li>Brainstorm and create multiple ideas </li></ul></ul></ul><ul><ul><ul><li>Bring concepts from related worlds and competitors </li></ul></ul></ul><ul><ul><li>Build on the ideas </li></ul></ul><ul><ul><ul><li>Experiment with technologies and platforms </li></ul></ul></ul><ul><ul><ul><li>Storyboard to make ideas tangible </li></ul></ul></ul><ul><ul><li>Realizing the ideas </li></ul></ul><ul><ul><ul><li>Push through budget constraints and politics </li></ul></ul></ul><ul><ul><ul><li>Collaborate with other teams, customers and partners </li></ul></ul></ul><ul><ul><li>So, what are these people called? What do they look like? </li></ul></ul>I

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Framework for Distributed Design Innovation People Process Product I Innovation Framework

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Framework for Distributed Design Innovation: Process <ul><li>Great ideas are the fountainhead of great products… </li></ul><ul><li>Create an environment for creative ideas </li></ul><ul><li>Encourage constructive dialogues and conflicts </li></ul><ul><li>Emphasize brainstorming and experimentation </li></ul><ul><li>Use triads – Design, Technology, Strategy </li></ul><ul><li>Focus on User Centered Design and Innovation </li></ul>I

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Framework for Distributed Design Innovation: Process <ul><li>User Centered Design is the cornerstone of any innovation activity </li></ul><ul><li>Understanding user needs th rough in context participant observation, ethnographic field visits, in lab sessions </li></ul><ul><li>Focus on early sketching, wireframes, quick prototypes </li></ul><ul><li>Iterate with users several times – measure and track issues </li></ul><ul><li>Focus on both Design and Usability aspects </li></ul><ul><li>Focus on often-ign ored aspects of the product – login screens, configurations and settings, button text, error messages </li></ul>I

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Framework for Distributed Design Innovation: Process <ul><li>But ideas are nothing without execution… </li></ul><ul><li>Organize your multi-location teams based on competency and fit </li></ul><ul><li>Don’t do dead and lengthy documents </li></ul><ul><li>Use lightweight, flexible technology within your team </li></ul><ul><ul><li>Wikis, RSS feeds, light project management and reporting </li></ul></ul><ul><ul><li>Technology should be persistent </li></ul></ul><ul><li>Keep your tasks small and your timeline smaller </li></ul><ul><li>Meetings can be wasteful - respect alone time </li></ul><ul><li>Create a process so people know where they are </li></ul><ul><li>Regular check ins </li></ul>I

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Framework for Distributed Design Innovation People Process Product I Innovation Framework

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Framework for Distributed Design Innovation: Product I <ul><li>What's the headline? What is the real unmet need you are solving? </li></ul><ul><ul><li>“ Pay your bills on time, every time” </li></ul></ul><ul><li>Ignore details early on </li></ul><ul><ul><li>Basecamp did not have charts, bar graphs </li></ul></ul><ul><li>Give customers just enough features to address 1 or 2 key needs </li></ul><ul><ul><li>E.g.: Ward Cunningham’s original Wiki </li></ul></ul><ul><li>Start with the User Interface first </li></ul><ul><ul><li>Focus on ignored usability aspects: admin screens, login screens, text simplicity </li></ul></ul><ul><li>If you optimize for everybody, it is great for nobody </li></ul><ul><ul><li>Housewives in Tokyo versus all the women in Japan </li></ul></ul>

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Framework for Distributed Design Innovation: Product <ul><li>Provide open forums to your customers </li></ul><ul><li>Consider new approaches – ‘Cloud computing’ </li></ul><ul><li>Encourage experimentation ala Google Labs </li></ul><ul><li>Sign up early adopters ala the gaming industry </li></ul><ul><li>Get product out into the field and get quick learnings </li></ul><ul><li>Iterate till you get it right! </li></ul><ul><li>Monetization can come later </li></ul><ul><li>Be open to changing your business model </li></ul><ul><ul><li>E.g. of Flickr began as a game called the Game Neverending </li></ul></ul>I

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Group exercise: Lets put these ideas to work!

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Distributed design innovation exercise <ul><li>DESIGN BRIEF </li></ul><ul><li>You have to solve the problem of “getting bills paid on time” for your local market </li></ul><ul><li>Exercise details are in your worksheet </li></ul><ul><li>Select the people, follow a process, create a product </li></ul><ul><ul><li>People – who would you choose within constraints. Select from 12 people profiles. </li></ul></ul><ul><ul><li>Process – which design processes would you choose . Select among several design processes. </li></ul></ul><ul><ul><li>Product – what would you finally build, how would you phase it out </li></ul></ul>

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Discussion on exercise <ul><li>What was our solution </li></ul><ul><li>What is your different solutions </li></ul><ul><li>Discuss differences/overlap </li></ul>

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Conclusions: Putting it all together

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How to stay in touch <ul><li>http://www.slideshare.net/amitpande/ or http://amitpande.com </li></ul><ul><li>http://distributedinnovation.wordpress.com </li></ul><ul><li>Email us </li></ul><ul><ul><li>[email_address] and [email_address] </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Visit us at http://upabangalore.org </li></ul>