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The Evolution of Design Thinking
Shifting from a product and service
to a relationship business model.
Andrea Picchi
www.a...
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
www.andreapicchi.it - @andreapicchi
Extract
Commodities
Make
Goods
Deliver
Services
Stage
Experience
Relevant
NEEDS
Irrele...
www.andreapicchi.it - @andreapicchi
Why evolution
of Design Thinking?
The Evolution of Design Thinking
Design
is a human-centered mindset
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
www.andreapicchi.it - @andreapicchi
Designing
is the practice of generating value through problem-solving
The Evolution of...
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
April 9, 2012
san francisco, california
Facebook
acquires Instagram
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
85M
book value
35M one week prior to acquisition
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
1.1B
total value
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
www.andreapicchi.it - @andreapicchi
Why Facebook paid
1294 times Instagram’s value?
The Evolution of Design Thinking
www.andreapicchi.it - @andreapicchi
Value
5 types meaningful *
identity
emotional
financial
functional
QUANTITATIVE
QUALITA...
www.andreapicchi.it - @andreapicchi
Value
quantitative: identified by the question
Does this do what I need?
Functional
Doe...
Value
qualitative: identified by the question
How does this make me feel?
Emotional
Does this reflect me?
Identity
Does this...
Qualitative Value
emotional
identity
meaningful
Qual V >>> Quant V
www.andreapicchi.it - @andreapicchiThe Evolution of Des...
Premium Value
it’s an effective competitive advantage because it’s hard to copy
www.andreapicchi.it - @andreapicchiThe Evo...
Premium Value
intangible but real
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
Premium Value
intangible but real
www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
www.andreapicchi.it - @andreapicchi
You are in the
relationship business
it is not a choice
The Evolution of Design Thinki...
www.andreapicchi.it - @andreapicchi
Relationship
humans evolved into social animals to survive.
Humans develop relationshi...
www.andreapicchi.it - @andreapicchi
What is
a relationship?
The Evolution of Design Thinking
Relationship
is a connection that exchanges value based on an experience
www.andreapicchi.it - @andreapicchiThe Evolution ...
www.andreapicchi.it - @andreapicchi
What is
an experience?
The Evolution of Design Thinking
www.andreapicchi.it - @andreapicchi
1. stimulus
2. perception
3. interaction
4. evaluation
Experience
is generated by the ...
www.andreapicchi.it - @andreapicchi
We can not design
an experience
we can only directly manipulate one component of the e...
www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
Relationship
designers don’t directly control the r...
www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
Relationship
qualitative value can be framed with a...
www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
Relationship
quantitative value can be decomposed u...
www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
Relationship
different delivery logic
Designing AI-...
www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
Relationship
different delivery logic
Designing AI-...
www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
Relationship
different delivery logic
Designing AI-...
www.andreapicchi.it - @andreapicchi
Relationship
customer time vs corporate time
A valuable relationship can only develop ...
www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
Tool
wave diagram to map the relationship
EXCITEM
E...
Design is problem solving; the problem to solve changes so did the practice.
We have 5 type of values: functional, financia...
The Evolution of Design Thinking
Shifting from a product and service
to a relationship business model.
Andrea Picchi
www.a...
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The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 1 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 2 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 3 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 4 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 5 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 6 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 7 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 8 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 9 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 10 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 11 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 12 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 13 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 14 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 15 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 16 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 17 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 18 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 19 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 20 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 21 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 22 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 23 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 24 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 25 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 26 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 27 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 28 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 29 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 30 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 31 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 32 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 33 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 34 The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model Slide 35
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The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model

The evolution of technology in the past 10 years created a new ecosystem that enriched our ability to connect with the most important people in our life. This event reframed the perception of our daily human-device interaction that is becoming every day more personal and intimate and reprioritized our priorities and expectations as a customer.

In this new landscape, a new approach is required to create and deliver relevant customer's value, and design thinking possesses the "ability" necessary to succeed.

In this session, we will initially explore how the customer's mindset and expectations are changed and what are the implications of this new paradigm on the design and development process. We will then illustrate how design thinking can help to maximize the value generation and how to use the design mindset to deliver relevant experiences to the customers.

In the last part, we will address some common mistakes and we provide some examples and guidelines to systematize design thinking inside an organization with the goal of establishing a design-driven business.

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The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model

  1. 1. The Evolution of Design Thinking Shifting from a product and service to a relationship business model. Andrea Picchi www.andreapicchi.it @andreapicchi a
  2. 2. www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  3. 3. www.andreapicchi.it - @andreapicchi Extract Commodities Make Goods Deliver Services Stage Experience Relevant NEEDS Irrelevant Differentiated COMPETITIVENESS Undifferentiated PRICING PremiumMarket Economic value evolved Source: Pine & Gilmore, The Experience Economy, 1999)The Evolution of Design Thinking n produced n extracted n delivered t spent
  4. 4. www.andreapicchi.it - @andreapicchi Why evolution of Design Thinking? The Evolution of Design Thinking
  5. 5. Design is a human-centered mindset www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  6. 6. www.andreapicchi.it - @andreapicchi Designing is the practice of generating value through problem-solving The Evolution of Design Thinking
  7. 7. www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking April 9, 2012 san francisco, california
  8. 8. Facebook acquires Instagram www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  9. 9. 85M book value 35M one week prior to acquisition www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  10. 10. 1.1B total value www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  11. 11. www.andreapicchi.it - @andreapicchi Why Facebook paid 1294 times Instagram’s value? The Evolution of Design Thinking
  12. 12. www.andreapicchi.it - @andreapicchi Value 5 types meaningful * identity emotional financial functional QUANTITATIVE QUALITATIVE + * This is governed by 15 core meanings:
 Accomplishment, Beauty, Community, Creation, Duty,
 Enlightenment, Freedom, Harmony, Justice, Oneness,
 Redemption, Security, Truth, Validation, Wonder.
 (Diller, Shedroff, and Rhea, 2008) The Evolution of Design Thinking
  13. 13. www.andreapicchi.it - @andreapicchi Value quantitative: identified by the question Does this do what I need? Functional Does this have a good cost/benefit ratio? Financial The Evolution of Design Thinking
  14. 14. Value qualitative: identified by the question How does this make me feel? Emotional Does this reflect me? Identity Does this fit into my world? Meaningful www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  15. 15. Qualitative Value emotional identity meaningful Qual V >>> Quant V www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  16. 16. Premium Value it’s an effective competitive advantage because it’s hard to copy www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  17. 17. Premium Value intangible but real www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  18. 18. Premium Value intangible but real www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  19. 19. www.andreapicchi.it - @andreapicchi You are in the relationship business it is not a choice The Evolution of Design Thinking
  20. 20. www.andreapicchi.it - @andreapicchi Relationship humans evolved into social animals to survive. Humans develop relationships with brands as they do with other humans. Humans anthropomorphize any interactive-actor by default. www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  21. 21. www.andreapicchi.it - @andreapicchi What is a relationship? The Evolution of Design Thinking
  22. 22. Relationship is a connection that exchanges value based on an experience www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
  23. 23. www.andreapicchi.it - @andreapicchi What is an experience? The Evolution of Design Thinking
  24. 24. www.andreapicchi.it - @andreapicchi 1. stimulus 2. perception 3. interaction 4. evaluation Experience is generated by the human's mind The Evolution of Design Thinking
  25. 25. www.andreapicchi.it - @andreapicchi We can not design an experience we can only directly manipulate one component of the equation Continuous Innovation: Human-centered design
  26. 26. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship designers don’t directly control the relationship Value Perception EXPERIENCEDESIGN PROBLEM SOLUTION TRIGGER TRIGGER The Evolution of Design Thinking
  27. 27. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship qualitative value can be framed with a strategy statement [COMPANY NAME] exists to provide [CUSTOMER] with [KEY PROMISE]. In doing so, it provides [BENEFIT 1, … , BENEFIT N] to customers. Toward that end, it offers [VALUABLE EXPERIENCE 1, … , VALUABLE EXPERIENCE N]. Disney exists to provide families worldwide with ever-deepening wonder. In doing so, it provides solace, beauty, community to customers. Toward that end, it offers features film, theme parks and subdivisions. Designing AI-based relationships INTERVIEWS STATEMENT
  28. 28. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship quantitative value can be decomposed using the Kano model A relationship is a connection that: is designed to fulfill a need. is based on a valuable experience. is perceived slightly different by different humans. is dynamically developed over time. Designing AI-based relationships
  29. 29. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship different delivery logic Designing AI-based relationships Functional Emotional Engaging Usable Reliable Functional Emotional Engaging Usable Reliable Reflecting Identity Sharing Meanings
  30. 30. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship different delivery logic Designing AI-based relationships Functional Emotional Engaging Usable Reliable Functional Emotional Engaging Usable Reliable Reflecting Identity Sharing Meanings QUALITATIVE VALUE QUANTITATIVE VALUE
  31. 31. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship different delivery logic Designing AI-based relationships Functional Emotional Engaging Usable Reliable Functional Emotional Engaging Usable Reliable Reflecting Identity Sharing Meanings
  32. 32. www.andreapicchi.it - @andreapicchi Relationship customer time vs corporate time A valuable relationship can only develop on customer time. www.andreapicchi.it - @andreapicchiDesigning AI-based Relationships
  33. 33. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Tool wave diagram to map the relationship EXCITEM EN T WONDER COMMUNITY JOY WONDER PLEASURE COMFORT Movie Visit Disneyland Movie Cruise Store TV Radio TIME INTENSITY Designing AI-based relationships
  34. 34. Design is problem solving; the problem to solve changes so did the practice. We have 5 type of values: functional, financial, emotional, identity, and meaningful. To exchange qualitative value we need to establish a relationship. A relationship is a connection that exchange value based on an experience. We cannot directly design an experience or directly control a relationship. We can investigate the qualitative value with interviews and other techniques. We can reframe our business model with a strategy statement. We can change the delivery strategy taking into account the qualitative value. We can visualize the relationship using a waveline designed on customer time. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Summary Designing AI-based relationships
  35. 35. The Evolution of Design Thinking Shifting from a product and service to a relationship business model. Andrea Picchi www.andreapicchi.it @andreapicchi a
  • theheurist

    Jan. 17, 2019
  • StefanBrm

    Nov. 8, 2018

The evolution of technology in the past 10 years created a new ecosystem that enriched our ability to connect with the most important people in our life. This event reframed the perception of our daily human-device interaction that is becoming every day more personal and intimate and reprioritized our priorities and expectations as a customer. In this new landscape, a new approach is required to create and deliver relevant customer's value, and design thinking possesses the "ability" necessary to succeed. In this session, we will initially explore how the customer's mindset and expectations are changed and what are the implications of this new paradigm on the design and development process. We will then illustrate how design thinking can help to maximize the value generation and how to use the design mindset to deliver relevant experiences to the customers. In the last part, we will address some common mistakes and we provide some examples and guidelines to systematize design thinking inside an organization with the goal of establishing a design-driven business.

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