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The design thinking transformation in business

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Presented at Webvisions Barcelona 2015 By Cathy Wang & Nuno Andrew

The definition of design is shifting from being a noun to a verb. We see it moving away from arts and craft into a methodology of delivering value. Adapting to this shift, designers and changemakers are forming a new way of design thinking.

As designer, not only are we crafting products / services, but we are also learning to see a much bigger system with a deep connection to business factors. How can we influence businesses with design thinking in order to build a solid business platform that delivers meaningful products / services.

Systems thinking is an approach to problem solving. Businesses are an intricate ecosystem, from how the organisation is structured, to people, to commercial planning, to processes. As designers, we practice systems thinking everyday. How do we use this knowledge to craft a business? This, is business design.

In this session, we want to explore what business design means. How to use what we know, as designers, to build stronger businesses? As we continue to adapt design methodologies and systems thinking to a business context, what other manifestations that will evolve? How can design thinking be leveraged in even the most straight-laced silos of a business such as Human Resources and Finance? How do we give design thinking the space it needs in the face of traditional business practice? And most importantly, how do we use our existing design thinking knowledge, to design businesses?

Published in: Design

The design thinking transformation in business

  1. 1. @cathycracks @nunoandrew The design thinking transformation in business Webvisions Barcelona 2015 Cathy Wang @cathycracks Nuno Andrew @nunoandrew
  2. 2. @cathycracks @nunoandrew Design thinking is neither art nor science nor religion. It is the capacity, ultimately, for integrative thinking. Tim Brown Thinking Transforms Organizations and Inspires Innovation. New York: Harper Business (2009)
  3. 3. @cathycracks @nunoandrew The Traveling Salesman the problem Given a list of cities and the distances between each pair of cities, what is the shortest possible route that visits each city exactly once and returns to the origin city?
  4. 4. @cathycracks @nunoandrew ant colony optimisation algorithm the solution
  5. 5. @cathycracks @nunoandrew Always design a thing by considering it in its next larger context — 
 a chair in a room, a room in a house, a house in an environment, an environment in a city plan. Eliel Saarinen
  6. 6. @cathycracks @nunoandrew ARE YOU A DESIGNER?
  7. 7. @cathycracks @nunoandrew Nuno Andrew @nunoandrew Portuguese. Australian. Europe based. Project Manager at Method. London, UK I like to focus on the intersection of design thinking and methodology, with organisational processes; advocating designs shifting value from product to process.
  8. 8. @cathycracks @nunoandrew Cathy Wang @cathycracks Nomadic Vancouverite found mostly in Europe. Experience Strategy Consultant London. UK I spend a lot of time thinking about the future, systems, and the interconnectivity of world around us.
  9. 9. @cathycracks @nunoandrew design thinkers treat businesses the way designers treat users
  10. 10. @cathycracks @nunoandrew The design thinking transformation in business Doing Applying Value
  11. 11. @cathycracks @nunoandrew Design thinking is influencing everything. things we do how we do things the tools we use how we communicate
  12. 12. @cathycracks @nunoandrew Graphic Design Web Design 0.05 0.10 Changing trend in design occupations The rise in design thinking roles verses traditional, output driven roles UX Design Interaction Design Jan ‘06 Jan ‘07 Jan ‘08 Jan ‘09 Jan ‘10 Jan ‘11 Jan ‘12 Jan ‘13 Jan ‘14 Jan ‘15 Percentageoftotaljobsearches Data courtesy of indeed.com trends
  13. 13. @cathycracks @nunoandrew Organizations purchasing Design Capabilities 2012 May Mike&Maaike (Google) 2004 Aug Frog (Aricent) 2014 Oct Great Fridays (EPAM) 2011 Sept Method (GlobalLogic) 2015 May Lunar (McKinsey) Business Consultants, Tech etc. all buying design 2014 Oct Adaptive Path (Capital One) 2013 May Fjord (Accenture)
  14. 14. @cathycracks @nunoandrew Design Studios and
 Product Development Studios like ustwo™ have been creating their own products, resulting in a hybrid model of both design services and self generated revenue.
  15. 15. @cathycracks @nunoandrew Design Studios and
 Product Development Studios like ustwo™ have been creating their own products, resulting in a hybrid model of both design services and self generated revenue.
  16. 16. @cathycracks @nunoandrew The Startup Studio A new model of creating products/ services/businesses within an studio context. Experimenting with the idea of an studio model that can create and launch multiple startups.
  17. 17. @cathycracks @nunoandrew 2011, $50M, 1.4M2005, $11.5M, 2.7B 2005, n/a, 190M 2004, n/a, 130M/mo. 2006, $3M, 55M/mo. 2007, $125M, 31.5M 2005, $51.6M, 12M 2010, $7.5M, 10M 2010, $9.8M, 7M 2004, n/a, 3.7M 2005, $51.6M, 12M 2005, $21.6M, 3M 2009, $3.7M, 2M 2009, $450K, 1.2M2010, $11.2M, 1M 2006, $0M, 1M 2008, $120M, ?M 2009, $169M, ?K 2007, $19.7M, 350K 2009, $2M, ?K2009, $550K, ?K 2010, $37M, 72M2010, $60.5M, 3.5M in various startups Designers as (co)founders 2010, $255K, 43K
  18. 18. @cathycracks @nunoandrew Design leaders in enterprises 2012 JUNE Mauro Porcini. CDO 2010 MARCH Rogier van der Heide. CDO 2014 MARCH Ernesto Quinteros. CDO 2012 JUN Choi Gee Sung, Chief of design made CEO 2013 July Derek White. CDO from CDOs to designers in the executive positions Design is not lumped together with marketing anymore. Big enterprises are putting design right in the c-suite.
  19. 19. @cathycracks @nunoandrew Chief Design Officer Apple
  20. 20. @cathycracks @nunoandrew The corporation incubators Corporate Startup Accelerators Corporate Venture Funds Labs The infrastructure & financial backing from enterprise go well to the fast-paced startup, to spark new ideas and foster design thinking.
  21. 21. @cathycracks @nunoandrew How practical business strategy is moving forward parallel to design thinking 1989 Benchmarking 2009 Business Model Innovation 1995 Digital Strategy 2003 Open Innovation 1969 SWOT Analysis 2005 Blue Ocean Strategy We are seeing trends of how design thinking are becoming close to traditional management consulting strategies.
  22. 22. @cathycracks @nunoandrew Unified competency Human/User Technology Business Brand UNICORN The industry is moving towards an unified competency of different areas. This cultural shift will help organisations be future-ready.
  23. 23. @cathycracks @nunoandrew I NEED 50 WIREFRAMES NO.
  24. 24. @cathycracks @nunoandrew I NEED 20 WIREFRAMES NO!
  25. 25. @cathycracks @nunoandrew I NEED 20 WIREFRAMES WHY? Design is not about the deliverables. It’s about delivering value.
  26. 26. @cathycracks @nunoandrew Design is not about the deliverables. Design is a way of thinking.
  27. 27. @cathycracks @nunoandrew Design thinking can be described as a discipline that uses the designer's sensibility and methods to match people's needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity. Tim Brown
  28. 28. @cathycracks @nunoandrew Tim Brown Graph from IDEO
  29. 29. @cathycracks @nunoandrew We all know the design process DISCOVERY VISION BUILD Thinking INTEGRATION Designing Realising LAUNCH DEFINITION Graph Curtesy of Great Fridays
  30. 30. @cathycracks @nunoandrew let’s really simplify the design process… How is it going?How are we doing it?What are we doing?Why are we doing this?
  31. 31. @cathycracks @nunoandrew IDEA 1 IDEA 2 80% user goals met 65% user goals met 75% technical feasibility 90% technical feasible 3months to complete 4monthsto complete Each one of the ideas might be more desirable for different roles in different organisations.
  32. 32. @cathycracks @nunoandrew Goals What problems are there? what problems could there be? User Experience What are the user’s needs and goals? Technology Can the technology platform support the idea? What are the considerations?
  33. 33. @cathycracks @nunoandrew DESIGN THINKERS doing the great balancing act.
  34. 34. @cathycracks @nunoandrew What are the considerations? Goals What problems are there? what problems could there be? User Experience What are the user’s needs and goals? Technology Can the technology platform support the idea? Organization Does the organization have the right resources for this? Business Process Are there other processes involved in making the idea happen? Financial How much does it cost, and how much of a return can be expected?
  35. 35. @cathycracks @nunoandrew Business (Viability) Technology (Feasibility) People (Desirability) experience innovation The balancing act of business, people, and technology.
  36. 36. @cathycracks @nunoandrew INFORM INFLUENCE
  37. 37. @cathycracks @nunoandrew Business (Viability) Technology (Feasibility) People (Desirability) We inform business decisions based on our visible knowledge areas.
  38. 38. @cathycracks @nunoandrew Business (Viability) Technology (Feasibility) People (Desirability) We influence business decisions based on our understanding of business.
  39. 39. @cathycracks @nunoandrew THIS IS DESIGN THINKING Business (Viability) Technology (Feasibility) People (Desirability) experience innovation
  40. 40. @cathycracks @nunoandrew what is the driving force of a feature? Works.io What is the reason that there’s no filter or recommendation engine at the current state of the site?
  41. 41. @cathycracks @nunoandrew how many users do you need before you have a recommendation engine?
  42. 42. @cathycracks @nunoandrew The many considerations of product roadmap 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PlatformsDevKPIs online art fair market place data Science recommendation engine internationalisation analytics exhibition galleries acquisition growth 1.2% Market share at 15% seed round A round Funding Works.io A feature is more than just the consideration of users. There are many moving parts around a business to be taken into account.
  43. 43. @cathycracks @nunoandrew Look ma, I am designing a business Acquisition Rate Revenue Works.io But really, there are so many things to consider in conjunction of product.
  44. 44. @cathycracks @nunoandrew We are designing a business!
  45. 45. @cathycracks @nunoandrew The designer’s questions for business how to make sense of ideas from multiple sources? how do you prioritize and build on the good ideas? how do you factor constraints and capabilities to make the ideas happen? how do you take different people’s needs into consideration? how do you measure the impact of the idea? how much effort is it needed to make the idea happen? the same questions that we ask in design process can be applied to how business decisions are made
  46. 46. @cathycracks @nunoandrew LEADERS, untitled or otherwise, realize the extraordinary impact they can have on others and the world around them. They consciously choose to exercise their abilities, skills, and knowledge to help make a difference. Mark Sanborn You don’t need a title to be a leader
  47. 47. @cathycracks @nunoandrew DESIGNERS, untitled or otherwise, realize the extraordinary impact they can have on others and the world around them. They consciously choose to exercise their abilities, skills, and knowledge to help make a difference. We believe that the same quality applies to designers. You don’t need “design” in your title to be a design thinker
  48. 48. @cathycracks @nunoandrew Problem Solution SolutionUnderstand Problem Abductive 
 Thinking Business Thinking Design Thinking
  49. 49. @cathycracks @nunoandrew to a hammer, everything is a nail
  50. 50. @cathycracks @nunoandrew The car runs on fuel. You don’t start the car with fuel, you start it with electricity. Jim Dawton
  51. 51. @cathycracks @nunoandrew Design is the key variable to kick start and drive transformation to the future
  52. 52. @cathycracks @nunoandrew Let’s think business design
  53. 53. @cathycracks @nunoandrew how does a wildlife trust innovate its business?
  54. 54. @cathycracks @nunoandrew how does a wildlife trust innovate its business? Re-selling service package to healthcare providers for mental illness patients.
  55. 55. @cathycracks @nunoandrew 8Putting design thinking in practice discover the bigger system balance the different elements within the system define new future
  56. 56. @cathycracks @nunoandrew We are all design thinkers.
  57. 57. @cathycracks @nunoandrew Thank You. Webvisions Barcelona 2015 Cathy Wang @cathycracks Nuno Andrew @nunoandrew
  58. 58. @cathycracks @nunoandrew Books http://www.amazon.com/Change-Design- Transforms-Organizations-Innovation/dp/ 0061766089 http://www.amazon.co.uk/Business-Model- Generation-Visionaries-Challengers/dp/ 0470876417/ http://www.amazon.com/You-Dont-Need-Title- Leader/dp/0385517475 Cathy Wang @cathycracks Nuno Andrew @nunoandrew
  59. 59. @cathycracks @nunoandrew http://en.wikipedia.org/wiki/Travelling_salesman_problem References Traveling Salesman Problem Cathy Wang @cathycracks Nuno Andrew @nunoandrew http://designerfund.com/infographic Designer as Founders http://www.designerfounders.com/ Woks.io http://works.io Monument Valley / Ustwo http://blog.monumentvalleygame.com/blog/2015/1/15/monument-valley-in-numbers https://hbr.org/2015/06/navigating-the-dozens-of-different-strategy-options Strategy Options Wildlife Turst UK & Mental Illness http://www.wildlifetrusts.org/tackling-mental-illness Electric Car by Yorlmar Campos from the Noun Project Credit https://thenounproject.com/term/electric-car/88448/ Nesta + Makeshift - The startup studio http://www.nesta.org.uk/event/startup-studios http://designthinking.ideo.com/?p=49 Design Thinking Capital One / Adaptive Path Design Agency Acquisitions Mckinsey / Lunar Accenture / Fjord Facebook / Teehan + Lax EPAM / Great Fridays GlobalLogic / Method Google / Mike & Maike

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