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DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| Laura Y. Mata GarcĂ­a
| 26Âș Cycle
| PhD in Design | Coordinator: Francesco Trabucco
| Supervisor: Prof. Alessandro Deserti
| Cosupervisor: Prof. Carlos Teixeira
| Opponent: Dr.Toni-Matti Karjalainen
| Defense Presentation
| 27.04.2014
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
2/48
1. WHY THIS TOPIC?
2. EXAMPLES
3. DEFINING THE RESEARCH SPACE
4. KEY TOPICS OF THIS WORK
5. HYPOTHESIS
6. GAP IN THE LITERATURE
7. PROBLEM STATEMENT
8. METHODOLOGY
9. LITERATURE REVIEW
10. CASE STUDIES
11. BASIC ASSUMPTIONS
12. EXPERIMENT DESIGN
13. EXPERIMENT DEVELOPMENT
14. RESULTS
15. CONCLUSIONS
16. BIBLIOGRAPHY
17. PUBLICATIONS
INDEX
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
3/48
Net Job Change - Start-ups
Net Job Change - Existing Firms
Source: Business Dynamics Statistics, Tim Kane
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-1,000,000
-2,000,000
-3,000,000
-4,000,000
-5,000,000
01977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
1. WHY THIS TOPIC?
New firms are net job creators while existing firms are net job destroyers (The Kaufman
Foundation, 2010)
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
4/48
Source: Thomson Reuters Datastream, Eurostat Reuters graphic/Scott Barber 4/2/2012
92 94 96 98 00 02 04 06 08 10 12
50
40
30
20
10
0
Euro
Introduced
Lehman
Collapse
Unemployment rate - under 25 year olds%
Spain 50.5
Greece 50.4
Portugal 35.4
Italy 31.9
Ireland 31.6
UK 23.5
France 21.7
Germany 8.2
1. WHY THIS TOPIC?
This is especially relevant in the current recession context since entrepreneurship has the
potential to boost employment.
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
5/48
1. WHY THIS TOPIC?
“Really, what we’re doing as designers is, ultimately, and
inevitably, designing the business of the companies that
we’re working for. Whether you like it or not, the more
innovative you try to be, the more you are going to affect
the business and the business model.”
-Tim Brown (2005), Speech at the Rotman Business
Design Conference
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
6/48
2. EXAMPLES: DYSON
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
7/48
2. EXAMPLES: AIRBNB
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
8/48
CRISIS
DOWNTURN
UNEMPLOYMENT
ISSUES
GENERATION
OF WEALTH
SPECIFIC INTEREST OF
UNIVERSITIES
ENTREPRENEURSHIP
NEW FIRMS
ROLE OF
DESIGN
3. DEFINING THE RESEARCH SPACE
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
9/48
THE PHENOMENON OF DESIGN-LED ENTREPRENEURSHIP
THE ROLE OF DESIGN
IN GENERATING AND
SETTING UP BUSINESS
IDEAS
BUSINESS MODEL
DESIGN
DESIGN AND
ENTREPRENEURSHIP
PRODUCT-ORIENTED
PERSPECTIVE
NEW MODES &
ROLES OF DESIGN.
NEW APPROACHES.
DESIGN AS A
MEDIUM
DESIGN AS
CONTENT
(MAIN OBJECTIVE
OF THE BUSINESS
ACTIVITY)
TO GIVE SHAPE
TO THE OFFERING
TO GIVE SHAPE
TO THE BUSINESS
+BUSINESS IDEA
4. KEY TOPICS OF THE RESEARCH
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
10/48
5. HYPOTHESIS
1) Traditional view of design’s contribution to entrepreneurship
BUSINESS
STRATEGY
BUSINESS
IDEA
DESIGN IS THE
BUSINESS
OFFERING
DESIGN
SHAPES THE
BUSINESS
OFFERING
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
11/48
5. HYPOTHESIS
DESIGN
BUSINESS
OFFERING
BUSINESS
STRATEGY
BUSINESS
IDEA
2) Design Thinking perspective: “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.” (Brown, 2009)
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
12/48
5. HYPOTHESIS
DESIGN
BUSINESS
OFFERING
BUSINESS
STRATEGY
BUSINESS
IDEA
3) The hypothesis of this work: design can take a role in earlier phases of the
entrepreneurial process and act as an instrument to frame, generate, shape,
develop, prototype and assess business ideas that could potentially become
entrepreneurial opportunities.
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
13/48
6. GAP IN THE LITERATURE
OPPORTUNITY
DRIVEN
DESIGN
DRIVEN
DESIGN PROCESS
CONTEXT
ANALYSIS
CONCEPT
GENERATION
DETAILED
DEVELOPMENT
INTRODUCTION TO
THE MARKET
ITERACTIVE DISCUSSIONBOTH PROCESSES CAN FEED EACH OTHER
ENTREPRENEURIAL PROCESS
OPPORTUNITY
RECOGNITION
BUSINESS CONCEPT
GENERATION
ORGANIZATION
CREATED
& PRODUCTION
TECHNOLOGY
PRODUCT
OR SERVICE
EXCHANGE
FRONT-END OF INNOVATION NEW PRODUCT DEVELOPMENT
FRONT-END OF ENTREPRENEURIAL
PROCESS
EXECUTION
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
14/48
6. GAP IN THE LITERATURE IDENTIFIED
The design discilpline has developed special instruments to manage the uncertainty and
non-linearity of the front-end of innovation of the new product development process.
InïŹ‚uenc
ingFactors
Idea
Selection
Idea
generation and
enrichment
Concept
Generation
Opportunity
IdentiïŹcation
Opportunity
Analysis
To NPD and/or
TSG
ENGINE
(Koen et al. 2001)
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
15/48
The purpose of this study is to provide an overview of the role of design in
entrepreneurship and clarify its potential contribution to the generation and
development of entrepreneurial opportunities.
7. PROBLEM STATEMENT
GENERAL OBJECTIVE
‱ To contribute to an advancement of a designerly approach and clarify the
role of design in the generation and development of entrepreneurial
processes.
SPECIFIC OBJECTIVES
‱ To codify and evaluate the different models of design-driven
entrepreneurship identiïŹed in different contexts and industries.
‱ To identify design tools that may contribute to the generation/discovery of
business opportunities
‱ To produce a comprehensive design tool (or toolkit) that enables aspiring
entrepreneurs generate robust business opportunities.
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
16/48
NEW FIRM
CREATION
OPPORTUNITY
DISCOVERY
TYPES OF
OPPORTUNITIES
BUSINESS
MODELS
DESIGN PROCESS,
TOOLS
& PROTOTYPING
IN OPPORTUNITY
IDENTIFICATION/
CREATION AND
NEW FIRM
CREATION
CASE STUDIES:
ECOSYSTEM OF
SUPPORT TO
DESIGN-DRIVEN
START-UPS
PILOT
EXPERIENCE
WITH A DESIGN-
DRIVEN
BUSINESS
GENERATION
PLATFORM
TESTING OF
A TOOLKIT OF
DESIGN
TOOLS IN AN
OPPORTUNITY
DISCOVERY
SIMULATION
PROCESS
RESEARCH
RESULTS.
OPEN QUESTIONS
FUTURE
DEVELOPMENTS
LITERATURE
REVIEW
CASE
STUDIES
CASE
STUDIES
ACTION
RESEARCH
+ MODELLING
TESTING
ACTION
RESEARCH
LITERATURE
OVERVIEW
RELEVANCE
EXISTING
APPROACHES
BEST PRACTICES
HISTORICAL &
CONTEMPORARY
PERSPECTIVE
MAPPING
BEST PRACTICES
MAPPING
ESTABLISHMENT
OF
CONTEXTUAL
DIFFERENCES
CODIFYING OF
ENABLING
MODEL
AND TOOLS
ANALISYS OF
RESULTS
ACTION
RESEARCH
+ DESIGNING
8.METHODOLOGY
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
17/48
PILOT
EXPERIENCE
WITH A DESIGN-
DRIVEN
BUSINESS
GENERATION
PLATFORM
TESTING OF
A TOOLKIT OF
DESIGN
TOOLS IN AN
OPPORTUNITY
DISCOVERY
SIMULATION
PROCESS
RESEARCH
RESULTS
OPEN QUESTIONS
FUTURE
DEVELOPMENTS
ACTION
RESEARCH
+ MODELLING
TESTING
ACTION
RESEARCH
NEW FIRM
CREATION
OPPORTUNITY
DISCOVERY
TYPES OF
OPPORTUNITIES
BUSINESS
MODELS
DESIGN PROCESS,
TOOLS
& PROTOTYPING
IN OPPORTUNITY
IDENTIFICATION/
CREATION AND
NEW FIRM
CREATION
CASE STUDIES:
ECOSYSTEM OF
SUPPORT TO
DESIGN-DRIVEN
START-UPS
LITERATURE
REVIEW
CASE
STUDIES
CASE
STUDIES
LITERATURE
OVERVIEW
RELEVANCE
EXISTING
APPROACHES
BEST PRACTICES
PRODUCT ORIENTED
AND IT FIRMS
CASE STUDIES
BEST PRACTICES
MAPPING
ESTABLISHMENT
OF
CONTEXTUAL
DIFFERENCES
CODIFYING OF
ENABLING
MODEL
AND TOOLS
ANALISYS OF
RESULTS
ACTION
RESEARCH
+ DESIGNING
CASE STUDIES ACTION RESEARCH
DESK
RESEARCH
8.METHODOLOGY
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
18/48
“Opportunity as a creative product in entrepreneurship is the progress (idea + action) along a
continuum ranging from an initial insight to a fully shaped idea about starting and operating a
business”.
Dimo Dimov, 2007
PROCESS MODEL OF ENTREPRENEURIAL VENTURE CREATION. ADAPTED FROM BHAVE (1994)
EXTERNALLY OR
INTERNALLY
SIMULATED
OPPORTUNITY
RECOGNITION
BUSINESS
CONCEPT
PRODUCT CUSTOMER
MARKET
STRATEGIC FEEDBACK OPERATIONAL FEEDBACK
SENSEMAKING PROCESS SUPPLY & DEMAND
BOUNDARY
OPPORTUNITY STAGE TECHNOLOGY SETUP & ORGANIZATION
CREATION STAGE
EXCHANGE STAGE
ORGANIZATION
CREATED
& PRODUCTION
TECHNOLOGY
COMMITMENT TO
VENTURE CREATION
9.LITERATURE REVIEW: ENTREPRENEURIAL OPPORTUNITIES
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
19/48
“Opportunity as a creative product in entrepreneurship is the progress (idea + action) along a
continuum ranging from an initial insight to a fully shaped idea about starting and operating a
business”.
Dimo Dimov, 2007
PROCESS MODEL OF ENTREPRENEURIAL VENTURE CREATION. ADAPTED FROM BHAVE (1994)
EXTERNALLY OR
INTERNALLY
SIMULATED
OPPORTUNITY
RECOGNITION
BUSINESS
CONCEPT
PRODUCT CUSTOMER
MARKET
STRATEGIC FEEDBACK OPERATIONAL FEEDBACK
SENSEMAKING PROCESS SUPPLY & DEMAND
BOUNDARY
OPPORTUNITY STAGE TECHNOLOGY SETUP & ORGANIZATION
CREATION STAGE
EXCHANGE STAGE
ORGANIZATION
CREATED
& PRODUCTION
TECHNOLOGY
COMMITMENT TO
VENTURE CREATION
FOCUS OF THE FIRST PHASE OF THE RESEARCH:
THE ENTREPRENEURIAL OPPORTUNITY
9. LITERATURE REVIEW: ENTREPRENEURIAL OPPORTUNITIES
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
20/48
9. LITERATURE REVIEW
DISCOVERY CREATION
Opportunities exist, are tangible
entities and are waiting to be
discovered (Shane, 2003)
Opportunities are created by the
actions of the entrepreneurs.
(Wood & McKinley, 2010)
Individuals who are alert, “read
the signs” and
“connect-the-dots” discover
opportunities ïŹrst.
Entrepreneurs have a vision, and act to
create it, receiving feedback from peers
and the market. They are also able to
build networks of stakeholders and
peers, obtain feedback and learn fast.
Research focuses on cognitive
traits possessed by particularly
“alert” individuals.
Research focuses on consensus
building and network-building
abilities of the entrepreneur.
Entrepreneurs rearrange existing
resources. Discovered
opportunities are not radically
innovative.
Entrepreneurs generate new
knowledge. They tend to be more
innovative and disruptive.
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
21/48
‱ In any case, the discovery or creation process is casual and sloppy.
‱Entrepreneurs waste valuable resources like time, money and energy
pursuing unsound ideas.
‱ Some authors (Bragg & Bragg, 2005; Rae, 2006) have acknowledged
the need to use “creativity” in the early phases of the entrepreneurial
process however none of them acknowledges any potential
contribution of design.
‱Designers are formally trained in valuable skills for entrepreneurship
such as dealing with ill-defined problems, heuristics, focusing on
solutions, serving markets and anticipating consumer’s needs and
wishes.
9. LITERATURE REVIEW
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
22/48
Business Model Innovation Challenges and Visual Solutions. Adapted from Eppler and Hoffmann
(2009)
Challenges Visual Solutions Facilitate:
Cognitive Complexity
Dominant
logic
Knowledge
Resources
Values
Team
- Absorb complexity
- Organigraphs map and clarify organizational
complexity
- Scenarios enable different views on the future
- Challenge self-imposed constraints
- Enable playful exploration of mindsets
- Sketching fosters “big picture” thinking and abstracting
- Foster shared thinking
- Stimulate thinking
- Inspire
- Integrate viewpoints through sketches and prototypes
- Knowledge sharing
Organizational - Resource maps visualize allocation potential and scope
- Elicit implicit values and trigger value-related dialogues
- Foster mutual learning in teams
- Offers coordination
- Strategy roadmaps create involvement and foster creativity
Areas
9. LITERATURE REVIEW: BUSINESS MODEL DESIGN
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
23/48
George and Bock (2011 ):
“the business model narrows entrepreneurial ideation to a definable opportunity,
establishes the relevant goal set that drives entrepreneurial action and organizational
investiture, and bounds the implementation of organizational activities that enact the
opportunity.
9. LITERATURE REVIEW: BUSINESS MODEL DESIGN
Growth Strategy
Competitive Strategy
Market
Segments
Value
Proposition
Costs
Capabilities
Partners The offer to the consumer,
including how and why it
addresses their need / fulïŹlls
their job to be done. How
consumers themselves would
describe the beneïŹt.
What group(s) of
people beneïŹt from the
value proposition, how
many there are now
and in the future.
The skills we need in order to create the
value proposition, particularly the team.
Who will we need to partner with or the
input we are dependent on in order to
develop/deliver the value proposition.
How much it will cost to
initially develop the value
proposition and how
much it will cost to
subsequently market
and deliver it.
Who the existing competitors are and how
we will react to them and likely new entrants
into this space, how we are positioned to win
in the market
How we plan to grow and what we hope our or-
ganisation will be in 5 years, do we plan to sell
and if so to who and when.
Prompts:
How about taking away things from
your offer until you can remove no more
in order to simplify it?
How about using defaults to try to
offer individuals the most suitable
offer immediately?
Prompts:
How about partnering with
companies that accelerate
development of the product?
How about considering which
areas of the business model are
sacred and which can be fulïŹlled
through partnership?
Prompts:
How about deferring
costs wherever possi -
ble, enabling you to get
paid before you have to
pay suppliers?
How about negotiating
better deals with em-
ployees and suppliers
by offering them a
share of the upside in
your company?
Prompts:
How about shipping fast to
learn early? Do we have the skills
to move and learn fast?
How about focusing on the
minimum offer at launch that
shows real beneïŹt?
Prompts:
How about stopping to consider what
you are great at in order to deliver the
value proposition and reapplying it to
other business opportunities?
How about adding on additional
premium services for your most loyal
customers?
How about looking at other consumer
segments that have similar needs?
Prompts:
How about charging customers less
(of even not charging for something)
in order to build to critical mass fast,
particularly when there are positive
network effects?
How about partnering with potential
future competitors early?
Prompts:
How about exploring which other
groups of consumers are likely to have
similar needs?
How about ensuring that you have a
member of that group available at all
times to act as a consumer advocate?
How about looking for a passionate
sub-segment to market to initially?
Pricing Model
How we will price the value consumer proposition,
whether it be ïŹxed, variable or subscription
pricing. Includes alternative sources of revenue,
particularly important if the consumer is not
expected to pay.
Prompts:
How about offering a subscription
element to your offer to ensure
repeat revenues?
How about offering the base service
for free and then charging for a
premium service?
How about having consumers pay
different amounts based on how much
they beneïŹt?
Distribution
Marketing
How the value proposition is delivered to the
consumer segment - how it is delivered to them
(distribution channel) and how it is communicated
to them (marketing channel). Prompts:
How about ensuring that you have
multiple distribution channels available?
How about tracking platform usage
among your target customer group,
which platforms are growing fastest?
How about using prize funds to engage
the consumer in developing your brand?
How about rewarding your
most passionate consumers for
becoming evangelists?
How about considering who is
the greatest inïŹ‚uencer for your
target customers?
Channel
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Revenue Streams
Through which Channels do our Customer Segments
want to be reached?How are we reaching them now?
How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
Channels
Customer Relationships
Customer Segments
channel phases:1. Awareness
How do we raise awarene
ss about our compan
y’s product
s and services
?
2. Evaluation
How do we help custome
rs evaluate
our organiza
tion’s Value Proposit
ion?
3. Purchase
How do we allow custome
rs to purchas
e specific
product
s and services
?
4. Delivery
How do we deliver a Value Proposit
ion to custome
rs?
5. After sales
How do we provide
post-pur
chase custome
r support
?
Mass MarketNiche MarketSegmented
Diversified
Multi-sided Platform
examples
Personal assistanceDedicated Personal Assistance
Self-Service
Automated ServicesCommunitiesCo-creation
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?How are they integrated with the rest of our business model?
How costly are they?
Value Propositions
Key Activities
Key Partners
Key Resources
Cost Structure
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?Customer Relationships?Revenue streams?
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
characteristicsNewness
Performance
Customization“Getting the Job Done”Design
Brand/StatusPrice
Cost ReductionRisk ReductionAccessibility
Convenience/Usability
categories
Production
Problem SolvingPlatform/Network
types of resourcesPhysical
Intellectual (brand patents, copyrights, data)
Human
Financial
motivations for partnerships:
Optimization and econom
y
Reduction of risk and uncertainty
Acquisition of particular resources and activities
is your business more:Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
sample characteristics:Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scaleEconomies of scope
www.businessmodelgeneration.com
The Business Model Canvas
On:
Iteration:
Designed by:
Designed for:
Day
Month
Year
No.
types:
Asset sale
Usage fee
Subscription FeesLending/Renting/LeasingLicensing
Brokerage feesAdvertising
fixed pricingList Price
Product feature dependentCustomer segment dependent
Volume dependent
dynamic pricingNegotiation( bargaining)Yield ManagementReal-time-Market
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IDEO Business Model Framework (2010) Business Model Canvas. (Osterwalder & Pigneur 2010)
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
24/48
10. CASE STUDIES: PRODUCT-ORIENTED FIRMS
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
25/48
DESIGN IS THE CONTENT OF THE BUSINESS OFFERING
ENTREPRENEURIAL OPPORTUNITIES ARE CREATED
10. CASE STUDIES: PRODUCT-ORIENTED FIRMS
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
26/48
10. CASE STUDIES:SERVICE-ORIENTED FIRMS
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
27/48
DESIGN SHAPED THE BUSINESS CONCEPT
ENTREPRENEURIAL OPPORTUNITIES ARE DISCOVERED
CASE STUDIES: SERVICE-ORIENTED FIRMS
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
28/48
10. CASE STUDIES: SUPPORT SYSTEMS FOR START-UPS
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
29/48
10. CASE STUDIES: SUPPORT SYSTEMS FOR START-UPS
ACTORS COVER LATER STAGES OF THE
ENTREPRENEURIAL PROCESS
MOST ENCOURAGE DESIGNERS TO SELF-PRODUCE
OR SELL DESIGN SERVICES
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
30/48
The creation of a new venture is a wicked problem and it faces
many of the same problems that a new product or service
development process faces because of the complexity of value
chains and markets:
‱ High levels of uncertainty and risk.
‱The need to deal with systemic problems related to creating an
entire value chain.
‱The need to build new networks to develop and sustain the new
businesses
‱ The difficulty to give incontrovertible proof of the potential
success of the entrepreneurial idea.
11. BASIC ASSUMPTIONS: SIMILARITIES BETWEEN PRODUCT
(OR SERVICE) DESIGN AND NEW VENTURE CREATION
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
31/48
Service design tools were designed to tackle many of the issues
that both the design of a new service, and the creation of a new
venture possess:
* Dealing with fuzzy and ill-defined problems
* Creating a network of actors and stakeholders
*Framing and generating ideas
* Prototyping intangible concepts (Blomkvist, 2010)
* Assessing collaboratively feasibility and validity.
Thus, they could facilitate and structure the entrepreneurial
opportunity discovery/creation process.
11.BASIC ASSUMPTIONS: SERVICE DESIGN TOOLS
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
32/48
12.ACTION RESEARCH: EXPERIMENT DESIGN
EXPERIMENT
OBJECTIVES
To test the use
of service design
instruments during
a business idea
generation workshop.
The workshop was
part of the Chinese
version of the
Dream:in project and
took place in Beijing,
China on March 23rd
and 24th, 2013.
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
33/48
The focus of the experiment is the Believe phase, also known as “The Conclave” the
students are joined by entrepreneurs, investors, experts, knowledge brokers and
knowledge managers in an open innovation workshop. The objective of the workshop is to
transform the dreams and aspirations of the citizens interviewed into ideas that could
potentially become entrepreneurial opportunities, and perhaps even new ventures.
then...
and
or...
,but
if?
THE INVESTOR
THE ENTREPRENEUR
KNOWLEDGE MANAGER
THE EXPERT
KNOWLEDGE BROKER
12. ACTION RESEARCH: EXPERIMENT DESIGN
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
34/48
1. Selecting useful service design tools.
2. Designing the interactions.
3. Selecting tools according to objectives.
4. Designing simpliïŹed versions of the tools
5. DeïŹne sample.
12. ACTION RESEARCH: EXPERIMENT DESIGN
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
35/48
FOUNDATION
ELEMENTS
Social
Political
Cultural
Context
Entrepreneur’s
Motivation
Cognitive Style
Preferences
Aspirations
Education or
Training
Pre-Phase Zero:
Preliminary
Opportunity
IdentiïŹcation:
Market and
Technology
Analysis
Phase Zero:
Product or
Service
Concept and
DeïŹnition
Phase one:
Venture
DeïŹnition
and Planning
FRONT-END EXECUTION
SpeciïŹcation and
Design
Prototyping
Tests and Validation
Technology Setup
Organization Setup
Market Launch
DECISION
TO EXPLOIT
(OR NOT TO
EXPLOIT)
EXTERNAL
ELEMENTS
INTERNAL
ELEMENTS
INTERVENTION AREA
12. ACTION RESEARCH: EXPERIMENT DESIGN
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
36/48
GROUNDING VISIONING
DEVELOPINGASSESSING
Dream Analysis card
(custom made for the
WS)
Dream Ranking
Tool (custom
made for the WS)
Mindmapping
Personas
Trend Cards (custom
made for the WS)
Scenario Canvas
Value Proposition Tool
Product Snapshot Tool
Ad Poster Tool
Actors and Stakeholders
Matrix
What if? cards
Dream Ideation Tool
(standard Dream:in
methodology format)
Prototype Tool
15 Questions Tool
SWOT analysis
Business Model Canvas
DIVERGENT
THINKING
CONVERGENT
THINKING
12. ACTION RESEARCH: EXPERIMENT DESIGN
* Selected tools were ordered
into four distinctive batches,
according to the workshop
format’s goals.
* The tools were integrated in
a workshop planner, and seven
variables were considered:
- workshop participants
- time
- space
- transitions
- transactions
- tools
- frameworks
- ideas
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
37/48
12. ACTION RESEARCH: EXPERIMENT DESIGN
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
38/48
13. WORKSHOP DEVELOPMENT
* Minor language
difficulties
* Work flow was faster
* Teams finished one hour
before control group
* Participants “connected
the dots” and immediately
spotted conflisting issues.
* Participants explored
more problems before
moving to developing
solutions.
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
39/48
13. WORKSHOP DEVELOPMENT- RESULTS: DAY 1
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
40/48
13. WORKSHOP DEVELOPMENT: DAY 1 CONTROL GROUP
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
41/48
13.WORKSHOP DEVELOPMENT: RESULTS DAY 2
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
42/48
Outcome from team
green 2 during day 1 of
the workshop working
by themselves.
Outcome from team
green 2 during day 2 of
the workshop working
using the service
design tols.
13. WORKSHOP DEVELOPMENT: COMPARISON
* Increase in depth,
complexity and
detail of ideas
* Multiplied amount
of features
*Added order and
structure
*Added different
levels of assessment
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
43/48
13. WORKSHOP DEVELOPMENT. DAY 2 - CONTROL GROUP
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
44/48
‱ Detailed more their ideas
‱ Explored the problems more before moving to a solution
‱ Worked more efficiently
‱ Participants focused on the content of ideas
‱ The tools enabled valorizing tacit knowledge
‱ Prototyped (roughly) their ideas.
‱ Assessed collaboratively their feasibility and validity.
‱ Using the tools provided a sort of “checklist” keeping complexity at bay for participants.
‱ The tools provided a structure to “fuzzy front-end” activities
‱ The tools positively influenced the quality of the process and the outputs
14. RESULTS: INSIGHTS FROM THE WORKSHOP
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
45/48
‱ The research proposes a new area of intervention for design instruments and design
culture in the front-end of the entrepreneurial process, to actively construct business
ideas that may generate entrepreneurial opportunities.
15. FINAL CONCLUSIONS: ORIGINAL CONTRIBUTION
THEORETICAL
CONTRIBUTION
EXPERIMENTAL
CONTRIBUTION
INSTRUMENTAL
CONTRIBUTION
THEORYPRACTICE
SIMILARITIES BETWEEN THE
FRONT-END OF INNOVATION AND
THE FRONT-END OF THE
ENTREPRENEURIAL PROCESSES
DESIGN OF A SERVICE
DESIGN TOOLKIT FOR
THE GENERATION OF
BUSINESS IDEAS
ENTREPRENEURIAL
OPPORTUNITY IDENTIFICATION
CAN BE SYSTEMATIZED
USING SERVICE DESIGN TOOLS
IN THE DISCOVERY/CREATION
OF ENTREPRENEURIAL
OPPORTUNITIES
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
46/48
* Limitations linked to the limitations of the experiment: small sample, unique
cultural context and lack of opportunities to replicate the experiment with
time and resources allocated to this research.
*The research uncovered the possibilities of a new territory for design, as such
it is a “work-in-progress” and cutting edge, without definitive answers, rather,
it brings up new questions.
15. FINAL CONCLUSIONS: LIMITATIONS OF THE RESEARCH
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
47/48
‱The Kauffman Foundation (2010) Kauffman Foundation Research Series:The Importance of startups in Job
Creation and Job Destruction. Retrieved from http://www.kauffman.org/uploadedFiles/firm_formation_
importance_of_startups. pdf
‱ Brown, T. (2009) Change by Design. HarperCollins. New York, NY.
‱ Koen, P., Ajamian, G., Burkart, R., Clamen, A., Davidson, J., D’Amore, R., Elkins, C., et al. (2001). Providing
clarity and a common language to the“ fuzzy front end”. Research-Technology Management, 44(2), 46–55.
Retrieved from http://www.ingentaconnect.com/content/iri/rtm/2001/00000044/00000002/art00 009
‱ Dimov,D.(2007),Beyond the Single-Person, Single-Insight Attribution in
Understanding Entrepreneurial Opportunities. Entrepreneurship Theory and Practice,
31: 713–731. doi: 10.1111/j.1540-6520.2007.00196.x
‱ Bhave M.P. (1994) A process model of entrepreneurial venture creation. Journal of Business Venturing, 9
(3), pp. 223-242
‱ Barringer, B. B., & Gresock, A. R. (2008). Formalizing the front-end of the
entrepreneurial process using the stage-gate model as a guide: An opportunity to improve
entrepreneurship education and practice. Journal of Small Business and Enterprise Development, 15(2),
289–303. doi:10.1108/14626000810871682
‱ Shane, S.A. (2003) A GeneralTheory of Entrepreneurship:The Individual–Opportunity
nexus. Edgar Elvar Publishing, Inc. Massachusetts, USA
‱ Wood, M.S., McKinley, W., (2010) The Production of Entrepreneurial Opportunity: A Constructivist
Perspective. Strategic Entrepreneurship Journal. 4: 66-84.
‱ Eppler, M.J. ,&Hoffmann, F. (2011).Challenges and Visual Solutions for Strategic Business Model
innovation. In M. HĂŒlsmann & N. Pfeffermann (Eds.), Strategies andCommunications For Innovations (pp.
25–36). Berlin, Heidelberg: Springer.
16. BIBLIOGRAPHY
DESIGNING ENTREPRENEURSHIP
CREATING ENTERPRISE THROUGH DESIGN CULTURE
| 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro
Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen
| Laura Mata GarcĂ­a
48/48
‱ Mata GarcĂ­a, L. La MediaciĂłn entre la InvestigaciĂłn, el Diseño y la Industria: el Ejemplo del
Proyecto Main y su Comparación con el Ámbito Mexicano. Conference Proceedings. MX
Design 2011: Diseño sin Fronteras. Universidad Iberoamericana. Mexico City, Mexico, 2011.
‱	 Celaschi, F., Celi, M., & Mata García, L. The Extended Value of Design: An Advanced Design
Perspective. Design Management Journal, 6–15. 2011. Retrieved from http://onlinelibrary.
wiley.com/doi/10.1111/j.1948-7177.2011.00024.x/full
‱	 Mata García, L. in Karjalainen, T.M. (ed.) Understanding Design Thinking, Exploration and
Exploitation: Implications for Design Strategy in IDBM Papers Vol. 2. IDBM Program. Aalto
University. Helsinki, 2012.
‱	 Celi, M. ĂĂ±iguez Flores, R., Mata GarcĂ­a, L. Design as Value Catalyst for SMEs in Emerging
Contexts: The Case of Guadalajara, Mexico. Journal of Design Strategies. 6 (1) 45:55. Parsons
the New School for Design. New York, 2013
‱	 Mata García, L., Deserti, A., Teixeira, J.C. Service Design Tools as Frameworks in the
Generation of Business Ideas: An Action Research Case Study. 2013- IEEE-Tsinghua
International Design Management Symposium, Shenzhen (PRC). ISBN: 978-1-4799-1542-2,
2013
‱Mata García, L., Deserti, A., Teixeira, J.C . Entrepreneurial Design: The Role of Design as
Driver of Entrepreneurial Opportunity Generation and Assessment. International Journal of
Entrepreneurship and Innovation Management. In Peer Review Process, 2014
17. PUBLICATIONS

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Designing Entrepreneurship. PhD Defense Presentation

  • 1. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | Laura Y. Mata GarcĂ­a | 26Âș Cycle | PhD in Design | Coordinator: Francesco Trabucco | Supervisor: Prof. Alessandro Deserti | Cosupervisor: Prof. Carlos Teixeira | Opponent: Dr.Toni-Matti Karjalainen | Defense Presentation | 27.04.2014
  • 2. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 2/48 1. WHY THIS TOPIC? 2. EXAMPLES 3. DEFINING THE RESEARCH SPACE 4. KEY TOPICS OF THIS WORK 5. HYPOTHESIS 6. GAP IN THE LITERATURE 7. PROBLEM STATEMENT 8. METHODOLOGY 9. LITERATURE REVIEW 10. CASE STUDIES 11. BASIC ASSUMPTIONS 12. EXPERIMENT DESIGN 13. EXPERIMENT DEVELOPMENT 14. RESULTS 15. CONCLUSIONS 16. BIBLIOGRAPHY 17. PUBLICATIONS INDEX
  • 3. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 3/48 Net Job Change - Start-ups Net Job Change - Existing Firms Source: Business Dynamics Statistics, Tim Kane 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 -1,000,000 -2,000,000 -3,000,000 -4,000,000 -5,000,000 01977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 1. WHY THIS TOPIC? New firms are net job creators while existing firms are net job destroyers (The Kaufman Foundation, 2010)
  • 4. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 4/48 Source: Thomson Reuters Datastream, Eurostat Reuters graphic/Scott Barber 4/2/2012 92 94 96 98 00 02 04 06 08 10 12 50 40 30 20 10 0 Euro Introduced Lehman Collapse Unemployment rate - under 25 year olds% Spain 50.5 Greece 50.4 Portugal 35.4 Italy 31.9 Ireland 31.6 UK 23.5 France 21.7 Germany 8.2 1. WHY THIS TOPIC? This is especially relevant in the current recession context since entrepreneurship has the potential to boost employment.
  • 5. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 5/48 1. WHY THIS TOPIC? “Really, what we’re doing as designers is, ultimately, and inevitably, designing the business of the companies that we’re working for. Whether you like it or not, the more innovative you try to be, the more you are going to affect the business and the business model.” -Tim Brown (2005), Speech at the Rotman Business Design Conference
  • 6. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 6/48 2. EXAMPLES: DYSON
  • 7. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 7/48 2. EXAMPLES: AIRBNB
  • 8. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 8/48 CRISIS DOWNTURN UNEMPLOYMENT ISSUES GENERATION OF WEALTH SPECIFIC INTEREST OF UNIVERSITIES ENTREPRENEURSHIP NEW FIRMS ROLE OF DESIGN 3. DEFINING THE RESEARCH SPACE
  • 9. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 9/48 THE PHENOMENON OF DESIGN-LED ENTREPRENEURSHIP THE ROLE OF DESIGN IN GENERATING AND SETTING UP BUSINESS IDEAS BUSINESS MODEL DESIGN DESIGN AND ENTREPRENEURSHIP PRODUCT-ORIENTED PERSPECTIVE NEW MODES & ROLES OF DESIGN. NEW APPROACHES. DESIGN AS A MEDIUM DESIGN AS CONTENT (MAIN OBJECTIVE OF THE BUSINESS ACTIVITY) TO GIVE SHAPE TO THE OFFERING TO GIVE SHAPE TO THE BUSINESS +BUSINESS IDEA 4. KEY TOPICS OF THE RESEARCH
  • 10. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 10/48 5. HYPOTHESIS 1) Traditional view of design’s contribution to entrepreneurship BUSINESS STRATEGY BUSINESS IDEA DESIGN IS THE BUSINESS OFFERING DESIGN SHAPES THE BUSINESS OFFERING
  • 11. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 11/48 5. HYPOTHESIS DESIGN BUSINESS OFFERING BUSINESS STRATEGY BUSINESS IDEA 2) Design Thinking perspective: “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.” (Brown, 2009)
  • 12. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 12/48 5. HYPOTHESIS DESIGN BUSINESS OFFERING BUSINESS STRATEGY BUSINESS IDEA 3) The hypothesis of this work: design can take a role in earlier phases of the entrepreneurial process and act as an instrument to frame, generate, shape, develop, prototype and assess business ideas that could potentially become entrepreneurial opportunities.
  • 13. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 13/48 6. GAP IN THE LITERATURE OPPORTUNITY DRIVEN DESIGN DRIVEN DESIGN PROCESS CONTEXT ANALYSIS CONCEPT GENERATION DETAILED DEVELOPMENT INTRODUCTION TO THE MARKET ITERACTIVE DISCUSSIONBOTH PROCESSES CAN FEED EACH OTHER ENTREPRENEURIAL PROCESS OPPORTUNITY RECOGNITION BUSINESS CONCEPT GENERATION ORGANIZATION CREATED & PRODUCTION TECHNOLOGY PRODUCT OR SERVICE EXCHANGE FRONT-END OF INNOVATION NEW PRODUCT DEVELOPMENT FRONT-END OF ENTREPRENEURIAL PROCESS EXECUTION
  • 14. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 14/48 6. GAP IN THE LITERATURE IDENTIFIED The design discilpline has developed special instruments to manage the uncertainty and non-linearity of the front-end of innovation of the new product development process. InïŹ‚uenc ingFactors Idea Selection Idea generation and enrichment Concept Generation Opportunity IdentiïŹcation Opportunity Analysis To NPD and/or TSG ENGINE (Koen et al. 2001)
  • 15. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 15/48 The purpose of this study is to provide an overview of the role of design in entrepreneurship and clarify its potential contribution to the generation and development of entrepreneurial opportunities. 7. PROBLEM STATEMENT GENERAL OBJECTIVE ‱ To contribute to an advancement of a designerly approach and clarify the role of design in the generation and development of entrepreneurial processes. SPECIFIC OBJECTIVES ‱ To codify and evaluate the different models of design-driven entrepreneurship identiïŹed in different contexts and industries. ‱ To identify design tools that may contribute to the generation/discovery of business opportunities ‱ To produce a comprehensive design tool (or toolkit) that enables aspiring entrepreneurs generate robust business opportunities.
  • 16. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 16/48 NEW FIRM CREATION OPPORTUNITY DISCOVERY TYPES OF OPPORTUNITIES BUSINESS MODELS DESIGN PROCESS, TOOLS & PROTOTYPING IN OPPORTUNITY IDENTIFICATION/ CREATION AND NEW FIRM CREATION CASE STUDIES: ECOSYSTEM OF SUPPORT TO DESIGN-DRIVEN START-UPS PILOT EXPERIENCE WITH A DESIGN- DRIVEN BUSINESS GENERATION PLATFORM TESTING OF A TOOLKIT OF DESIGN TOOLS IN AN OPPORTUNITY DISCOVERY SIMULATION PROCESS RESEARCH RESULTS. OPEN QUESTIONS FUTURE DEVELOPMENTS LITERATURE REVIEW CASE STUDIES CASE STUDIES ACTION RESEARCH + MODELLING TESTING ACTION RESEARCH LITERATURE OVERVIEW RELEVANCE EXISTING APPROACHES BEST PRACTICES HISTORICAL & CONTEMPORARY PERSPECTIVE MAPPING BEST PRACTICES MAPPING ESTABLISHMENT OF CONTEXTUAL DIFFERENCES CODIFYING OF ENABLING MODEL AND TOOLS ANALISYS OF RESULTS ACTION RESEARCH + DESIGNING 8.METHODOLOGY
  • 17. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 17/48 PILOT EXPERIENCE WITH A DESIGN- DRIVEN BUSINESS GENERATION PLATFORM TESTING OF A TOOLKIT OF DESIGN TOOLS IN AN OPPORTUNITY DISCOVERY SIMULATION PROCESS RESEARCH RESULTS OPEN QUESTIONS FUTURE DEVELOPMENTS ACTION RESEARCH + MODELLING TESTING ACTION RESEARCH NEW FIRM CREATION OPPORTUNITY DISCOVERY TYPES OF OPPORTUNITIES BUSINESS MODELS DESIGN PROCESS, TOOLS & PROTOTYPING IN OPPORTUNITY IDENTIFICATION/ CREATION AND NEW FIRM CREATION CASE STUDIES: ECOSYSTEM OF SUPPORT TO DESIGN-DRIVEN START-UPS LITERATURE REVIEW CASE STUDIES CASE STUDIES LITERATURE OVERVIEW RELEVANCE EXISTING APPROACHES BEST PRACTICES PRODUCT ORIENTED AND IT FIRMS CASE STUDIES BEST PRACTICES MAPPING ESTABLISHMENT OF CONTEXTUAL DIFFERENCES CODIFYING OF ENABLING MODEL AND TOOLS ANALISYS OF RESULTS ACTION RESEARCH + DESIGNING CASE STUDIES ACTION RESEARCH DESK RESEARCH 8.METHODOLOGY
  • 18. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 18/48 “Opportunity as a creative product in entrepreneurship is the progress (idea + action) along a continuum ranging from an initial insight to a fully shaped idea about starting and operating a business”. Dimo Dimov, 2007 PROCESS MODEL OF ENTREPRENEURIAL VENTURE CREATION. ADAPTED FROM BHAVE (1994) EXTERNALLY OR INTERNALLY SIMULATED OPPORTUNITY RECOGNITION BUSINESS CONCEPT PRODUCT CUSTOMER MARKET STRATEGIC FEEDBACK OPERATIONAL FEEDBACK SENSEMAKING PROCESS SUPPLY & DEMAND BOUNDARY OPPORTUNITY STAGE TECHNOLOGY SETUP & ORGANIZATION CREATION STAGE EXCHANGE STAGE ORGANIZATION CREATED & PRODUCTION TECHNOLOGY COMMITMENT TO VENTURE CREATION 9.LITERATURE REVIEW: ENTREPRENEURIAL OPPORTUNITIES
  • 19. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 19/48 “Opportunity as a creative product in entrepreneurship is the progress (idea + action) along a continuum ranging from an initial insight to a fully shaped idea about starting and operating a business”. Dimo Dimov, 2007 PROCESS MODEL OF ENTREPRENEURIAL VENTURE CREATION. ADAPTED FROM BHAVE (1994) EXTERNALLY OR INTERNALLY SIMULATED OPPORTUNITY RECOGNITION BUSINESS CONCEPT PRODUCT CUSTOMER MARKET STRATEGIC FEEDBACK OPERATIONAL FEEDBACK SENSEMAKING PROCESS SUPPLY & DEMAND BOUNDARY OPPORTUNITY STAGE TECHNOLOGY SETUP & ORGANIZATION CREATION STAGE EXCHANGE STAGE ORGANIZATION CREATED & PRODUCTION TECHNOLOGY COMMITMENT TO VENTURE CREATION FOCUS OF THE FIRST PHASE OF THE RESEARCH: THE ENTREPRENEURIAL OPPORTUNITY 9. LITERATURE REVIEW: ENTREPRENEURIAL OPPORTUNITIES
  • 20. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 20/48 9. LITERATURE REVIEW DISCOVERY CREATION Opportunities exist, are tangible entities and are waiting to be discovered (Shane, 2003) Opportunities are created by the actions of the entrepreneurs. (Wood & McKinley, 2010) Individuals who are alert, “read the signs” and “connect-the-dots” discover opportunities ïŹrst. Entrepreneurs have a vision, and act to create it, receiving feedback from peers and the market. They are also able to build networks of stakeholders and peers, obtain feedback and learn fast. Research focuses on cognitive traits possessed by particularly “alert” individuals. Research focuses on consensus building and network-building abilities of the entrepreneur. Entrepreneurs rearrange existing resources. Discovered opportunities are not radically innovative. Entrepreneurs generate new knowledge. They tend to be more innovative and disruptive.
  • 21. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 21/48 ‱ In any case, the discovery or creation process is casual and sloppy. ‱Entrepreneurs waste valuable resources like time, money and energy pursuing unsound ideas. ‱ Some authors (Bragg & Bragg, 2005; Rae, 2006) have acknowledged the need to use “creativity” in the early phases of the entrepreneurial process however none of them acknowledges any potential contribution of design. ‱Designers are formally trained in valuable skills for entrepreneurship such as dealing with ill-defined problems, heuristics, focusing on solutions, serving markets and anticipating consumer’s needs and wishes. 9. LITERATURE REVIEW
  • 22. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 22/48 Business Model Innovation Challenges and Visual Solutions. Adapted from Eppler and Hoffmann (2009) Challenges Visual Solutions Facilitate: Cognitive Complexity Dominant logic Knowledge Resources Values Team - Absorb complexity - Organigraphs map and clarify organizational complexity - Scenarios enable different views on the future - Challenge self-imposed constraints - Enable playful exploration of mindsets - Sketching fosters “big picture” thinking and abstracting - Foster shared thinking - Stimulate thinking - Inspire - Integrate viewpoints through sketches and prototypes - Knowledge sharing Organizational - Resource maps visualize allocation potential and scope - Elicit implicit values and trigger value-related dialogues - Foster mutual learning in teams - Offers coordination - Strategy roadmaps create involvement and foster creativity Areas 9. LITERATURE REVIEW: BUSINESS MODEL DESIGN
  • 23. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 23/48 George and Bock (2011 ): “the business model narrows entrepreneurial ideation to a definable opportunity, establishes the relevant goal set that drives entrepreneurial action and organizational investiture, and bounds the implementation of organizational activities that enact the opportunity. 9. LITERATURE REVIEW: BUSINESS MODEL DESIGN Growth Strategy Competitive Strategy Market Segments Value Proposition Costs Capabilities Partners The offer to the consumer, including how and why it addresses their need / fulïŹlls their job to be done. How consumers themselves would describe the beneïŹt. What group(s) of people beneïŹt from the value proposition, how many there are now and in the future. The skills we need in order to create the value proposition, particularly the team. Who will we need to partner with or the input we are dependent on in order to develop/deliver the value proposition. How much it will cost to initially develop the value proposition and how much it will cost to subsequently market and deliver it. Who the existing competitors are and how we will react to them and likely new entrants into this space, how we are positioned to win in the market How we plan to grow and what we hope our or- ganisation will be in 5 years, do we plan to sell and if so to who and when. Prompts: How about taking away things from your offer until you can remove no more in order to simplify it? How about using defaults to try to offer individuals the most suitable offer immediately? Prompts: How about partnering with companies that accelerate development of the product? How about considering which areas of the business model are sacred and which can be fulïŹlled through partnership? Prompts: How about deferring costs wherever possi - ble, enabling you to get paid before you have to pay suppliers? How about negotiating better deals with em- ployees and suppliers by offering them a share of the upside in your company? Prompts: How about shipping fast to learn early? Do we have the skills to move and learn fast? How about focusing on the minimum offer at launch that shows real beneïŹt? Prompts: How about stopping to consider what you are great at in order to deliver the value proposition and reapplying it to other business opportunities? How about adding on additional premium services for your most loyal customers? How about looking at other consumer segments that have similar needs? Prompts: How about charging customers less (of even not charging for something) in order to build to critical mass fast, particularly when there are positive network effects? How about partnering with potential future competitors early? Prompts: How about exploring which other groups of consumers are likely to have similar needs? How about ensuring that you have a member of that group available at all times to act as a consumer advocate? How about looking for a passionate sub-segment to market to initially? Pricing Model How we will price the value consumer proposition, whether it be ïŹxed, variable or subscription pricing. Includes alternative sources of revenue, particularly important if the consumer is not expected to pay. Prompts: How about offering a subscription element to your offer to ensure repeat revenues? How about offering the base service for free and then charging for a premium service? How about having consumers pay different amounts based on how much they beneïŹt? Distribution Marketing How the value proposition is delivered to the consumer segment - how it is delivered to them (distribution channel) and how it is communicated to them (marketing channel). Prompts: How about ensuring that you have multiple distribution channels available? How about tracking platform usage among your target customer group, which platforms are growing fastest? How about using prize funds to engage the consumer in developing your brand? How about rewarding your most passionate consumers for becoming evangelists? How about considering who is the greatest inïŹ‚uencer for your target customers? Channel What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Revenue Streams Through which Channels do our Customer Segments want to be reached?How are we reaching them now? How are our Channels integrated?Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines? For what value are our customers really willing to pay? For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues? Channels Customer Relationships Customer Segments channel phases:1. Awareness How do we raise awarene ss about our compan y’s product s and services ? 2. Evaluation How do we help custome rs evaluate our organiza tion’s Value Proposit ion? 3. Purchase How do we allow custome rs to purchas e specific product s and services ? 4. Delivery How do we deliver a Value Proposit ion to custome rs? 5. After sales How do we provide post-pur chase custome r support ? Mass MarketNiche MarketSegmented Diversified Multi-sided Platform examples Personal assistanceDedicated Personal Assistance Self-Service Automated ServicesCommunitiesCo-creation For whom are we creating value? Who are our most important customers? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established?How are they integrated with the rest of our business model? How costly are they? Value Propositions Key Activities Key Partners Key Resources Cost Structure What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? What Key Activities do our Value Propositions require? Our Distribution Channels?Customer Relationships?Revenue streams? Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? characteristicsNewness Performance Customization“Getting the Job Done”Design Brand/StatusPrice Cost ReductionRisk ReductionAccessibility Convenience/Usability categories Production Problem SolvingPlatform/Network types of resourcesPhysical Intellectual (brand patents, copyrights, data) Human Financial motivations for partnerships: Optimization and econom y Reduction of risk and uncertainty Acquisition of particular resources and activities is your business more:Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics:Fixed Costs (salaries, rents, utilities) Variable costs Economies of scaleEconomies of scope www.businessmodelgeneration.com The Business Model Canvas On: Iteration: Designed by: Designed for: Day Month Year No. types: Asset sale Usage fee Subscription FeesLending/Renting/LeasingLicensing Brokerage feesAdvertising fixed pricingList Price Product feature dependentCustomer segment dependent Volume dependent dynamic pricingNegotiation( bargaining)Yield ManagementReal-time-Market This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. IDEO Business Model Framework (2010) Business Model Canvas. (Osterwalder & Pigneur 2010)
  • 24. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 24/48 10. CASE STUDIES: PRODUCT-ORIENTED FIRMS
  • 25. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 25/48 DESIGN IS THE CONTENT OF THE BUSINESS OFFERING ENTREPRENEURIAL OPPORTUNITIES ARE CREATED 10. CASE STUDIES: PRODUCT-ORIENTED FIRMS
  • 26. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 26/48 10. CASE STUDIES:SERVICE-ORIENTED FIRMS
  • 27. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 27/48 DESIGN SHAPED THE BUSINESS CONCEPT ENTREPRENEURIAL OPPORTUNITIES ARE DISCOVERED CASE STUDIES: SERVICE-ORIENTED FIRMS
  • 28. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 28/48 10. CASE STUDIES: SUPPORT SYSTEMS FOR START-UPS
  • 29. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 29/48 10. CASE STUDIES: SUPPORT SYSTEMS FOR START-UPS ACTORS COVER LATER STAGES OF THE ENTREPRENEURIAL PROCESS MOST ENCOURAGE DESIGNERS TO SELF-PRODUCE OR SELL DESIGN SERVICES
  • 30. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 30/48 The creation of a new venture is a wicked problem and it faces many of the same problems that a new product or service development process faces because of the complexity of value chains and markets: ‱ High levels of uncertainty and risk. ‱The need to deal with systemic problems related to creating an entire value chain. ‱The need to build new networks to develop and sustain the new businesses ‱ The difficulty to give incontrovertible proof of the potential success of the entrepreneurial idea. 11. BASIC ASSUMPTIONS: SIMILARITIES BETWEEN PRODUCT (OR SERVICE) DESIGN AND NEW VENTURE CREATION
  • 31. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 31/48 Service design tools were designed to tackle many of the issues that both the design of a new service, and the creation of a new venture possess: * Dealing with fuzzy and ill-defined problems * Creating a network of actors and stakeholders *Framing and generating ideas * Prototyping intangible concepts (Blomkvist, 2010) * Assessing collaboratively feasibility and validity. Thus, they could facilitate and structure the entrepreneurial opportunity discovery/creation process. 11.BASIC ASSUMPTIONS: SERVICE DESIGN TOOLS
  • 32. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 32/48 12.ACTION RESEARCH: EXPERIMENT DESIGN EXPERIMENT OBJECTIVES To test the use of service design instruments during a business idea generation workshop. The workshop was part of the Chinese version of the Dream:in project and took place in Beijing, China on March 23rd and 24th, 2013.
  • 33. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 33/48 The focus of the experiment is the Believe phase, also known as “The Conclave” the students are joined by entrepreneurs, investors, experts, knowledge brokers and knowledge managers in an open innovation workshop. The objective of the workshop is to transform the dreams and aspirations of the citizens interviewed into ideas that could potentially become entrepreneurial opportunities, and perhaps even new ventures. then... and or... ,but if? THE INVESTOR THE ENTREPRENEUR KNOWLEDGE MANAGER THE EXPERT KNOWLEDGE BROKER 12. ACTION RESEARCH: EXPERIMENT DESIGN
  • 34. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 34/48 1. Selecting useful service design tools. 2. Designing the interactions. 3. Selecting tools according to objectives. 4. Designing simpliïŹed versions of the tools 5. DeïŹne sample. 12. ACTION RESEARCH: EXPERIMENT DESIGN
  • 35. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 35/48 FOUNDATION ELEMENTS Social Political Cultural Context Entrepreneur’s Motivation Cognitive Style Preferences Aspirations Education or Training Pre-Phase Zero: Preliminary Opportunity IdentiïŹcation: Market and Technology Analysis Phase Zero: Product or Service Concept and DeïŹnition Phase one: Venture DeïŹnition and Planning FRONT-END EXECUTION SpeciïŹcation and Design Prototyping Tests and Validation Technology Setup Organization Setup Market Launch DECISION TO EXPLOIT (OR NOT TO EXPLOIT) EXTERNAL ELEMENTS INTERNAL ELEMENTS INTERVENTION AREA 12. ACTION RESEARCH: EXPERIMENT DESIGN
  • 36. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 36/48 GROUNDING VISIONING DEVELOPINGASSESSING Dream Analysis card (custom made for the WS) Dream Ranking Tool (custom made for the WS) Mindmapping Personas Trend Cards (custom made for the WS) Scenario Canvas Value Proposition Tool Product Snapshot Tool Ad Poster Tool Actors and Stakeholders Matrix What if? cards Dream Ideation Tool (standard Dream:in methodology format) Prototype Tool 15 Questions Tool SWOT analysis Business Model Canvas DIVERGENT THINKING CONVERGENT THINKING 12. ACTION RESEARCH: EXPERIMENT DESIGN * Selected tools were ordered into four distinctive batches, according to the workshop format’s goals. * The tools were integrated in a workshop planner, and seven variables were considered: - workshop participants - time - space - transitions - transactions - tools - frameworks - ideas
  • 37. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 37/48 12. ACTION RESEARCH: EXPERIMENT DESIGN
  • 38. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 38/48 13. WORKSHOP DEVELOPMENT * Minor language difficulties * Work flow was faster * Teams finished one hour before control group * Participants “connected the dots” and immediately spotted conflisting issues. * Participants explored more problems before moving to developing solutions.
  • 39. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 39/48 13. WORKSHOP DEVELOPMENT- RESULTS: DAY 1
  • 40. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 40/48 13. WORKSHOP DEVELOPMENT: DAY 1 CONTROL GROUP
  • 41. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 41/48 13.WORKSHOP DEVELOPMENT: RESULTS DAY 2
  • 42. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 42/48 Outcome from team green 2 during day 1 of the workshop working by themselves. Outcome from team green 2 during day 2 of the workshop working using the service design tols. 13. WORKSHOP DEVELOPMENT: COMPARISON * Increase in depth, complexity and detail of ideas * Multiplied amount of features *Added order and structure *Added different levels of assessment
  • 43. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 43/48 13. WORKSHOP DEVELOPMENT. DAY 2 - CONTROL GROUP
  • 44. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 44/48 ‱ Detailed more their ideas ‱ Explored the problems more before moving to a solution ‱ Worked more efficiently ‱ Participants focused on the content of ideas ‱ The tools enabled valorizing tacit knowledge ‱ Prototyped (roughly) their ideas. ‱ Assessed collaboratively their feasibility and validity. ‱ Using the tools provided a sort of “checklist” keeping complexity at bay for participants. ‱ The tools provided a structure to “fuzzy front-end” activities ‱ The tools positively influenced the quality of the process and the outputs 14. RESULTS: INSIGHTS FROM THE WORKSHOP
  • 45. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 45/48 ‱ The research proposes a new area of intervention for design instruments and design culture in the front-end of the entrepreneurial process, to actively construct business ideas that may generate entrepreneurial opportunities. 15. FINAL CONCLUSIONS: ORIGINAL CONTRIBUTION THEORETICAL CONTRIBUTION EXPERIMENTAL CONTRIBUTION INSTRUMENTAL CONTRIBUTION THEORYPRACTICE SIMILARITIES BETWEEN THE FRONT-END OF INNOVATION AND THE FRONT-END OF THE ENTREPRENEURIAL PROCESSES DESIGN OF A SERVICE DESIGN TOOLKIT FOR THE GENERATION OF BUSINESS IDEAS ENTREPRENEURIAL OPPORTUNITY IDENTIFICATION CAN BE SYSTEMATIZED USING SERVICE DESIGN TOOLS IN THE DISCOVERY/CREATION OF ENTREPRENEURIAL OPPORTUNITIES
  • 46. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 46/48 * Limitations linked to the limitations of the experiment: small sample, unique cultural context and lack of opportunities to replicate the experiment with time and resources allocated to this research. *The research uncovered the possibilities of a new territory for design, as such it is a “work-in-progress” and cutting edge, without definitive answers, rather, it brings up new questions. 15. FINAL CONCLUSIONS: LIMITATIONS OF THE RESEARCH
  • 47. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 47/48 ‱The Kauffman Foundation (2010) Kauffman Foundation Research Series:The Importance of startups in Job Creation and Job Destruction. Retrieved from http://www.kauffman.org/uploadedFiles/firm_formation_ importance_of_startups. pdf ‱ Brown, T. (2009) Change by Design. HarperCollins. New York, NY. ‱ Koen, P., Ajamian, G., Burkart, R., Clamen, A., Davidson, J., D’Amore, R., Elkins, C., et al. (2001). Providing clarity and a common language to the“ fuzzy front end”. Research-Technology Management, 44(2), 46–55. Retrieved from http://www.ingentaconnect.com/content/iri/rtm/2001/00000044/00000002/art00 009 ‱ Dimov,D.(2007),Beyond the Single-Person, Single-Insight Attribution in Understanding Entrepreneurial Opportunities. Entrepreneurship Theory and Practice, 31: 713–731. doi: 10.1111/j.1540-6520.2007.00196.x ‱ Bhave M.P. (1994) A process model of entrepreneurial venture creation. Journal of Business Venturing, 9 (3), pp. 223-242 ‱ Barringer, B. B., & Gresock, A. R. (2008). Formalizing the front-end of the entrepreneurial process using the stage-gate model as a guide: An opportunity to improve entrepreneurship education and practice. Journal of Small Business and Enterprise Development, 15(2), 289–303. doi:10.1108/14626000810871682 ‱ Shane, S.A. (2003) A GeneralTheory of Entrepreneurship:The Individual–Opportunity nexus. Edgar Elvar Publishing, Inc. Massachusetts, USA ‱ Wood, M.S., McKinley, W., (2010) The Production of Entrepreneurial Opportunity: A Constructivist Perspective. Strategic Entrepreneurship Journal. 4: 66-84. ‱ Eppler, M.J. ,&Hoffmann, F. (2011).Challenges and Visual Solutions for Strategic Business Model innovation. In M. HĂŒlsmann & N. Pfeffermann (Eds.), Strategies andCommunications For Innovations (pp. 25–36). Berlin, Heidelberg: Springer. 16. BIBLIOGRAPHY
  • 48. DESIGNING ENTREPRENEURSHIP CREATING ENTERPRISE THROUGH DESIGN CULTURE | 26Âș Cycle | PhD in Design | Coordinatore Francesco Trabucco | Relatore: Alessandro Deserti | Correlatore: Carlos Teixeira | Controrrelatore: Toni-Matti Karjalainen | Laura Mata GarcĂ­a 48/48 ‱ Mata GarcĂ­a, L. La MediaciĂłn entre la InvestigaciĂłn, el Diseño y la Industria: el Ejemplo del Proyecto Main y su ComparaciĂłn con el Ámbito Mexicano. Conference Proceedings. MX Design 2011: Diseño sin Fronteras. Universidad Iberoamericana. Mexico City, Mexico, 2011. ‱ Celaschi, F., Celi, M., & Mata GarcĂ­a, L. The Extended Value of Design: An Advanced Design Perspective. Design Management Journal, 6–15. 2011. Retrieved from http://onlinelibrary. wiley.com/doi/10.1111/j.1948-7177.2011.00024.x/full ‱ Mata GarcĂ­a, L. in Karjalainen, T.M. (ed.) Understanding Design Thinking, Exploration and Exploitation: Implications for Design Strategy in IDBM Papers Vol. 2. IDBM Program. Aalto University. Helsinki, 2012. ‱ Celi, M. ĂĂ±iguez Flores, R., Mata GarcĂ­a, L. Design as Value Catalyst for SMEs in Emerging Contexts: The Case of Guadalajara, Mexico. Journal of Design Strategies. 6 (1) 45:55. Parsons the New School for Design. New York, 2013 ‱ Mata GarcĂ­a, L., Deserti, A., Teixeira, J.C. Service Design Tools as Frameworks in the Generation of Business Ideas: An Action Research Case Study. 2013- IEEE-Tsinghua International Design Management Symposium, Shenzhen (PRC). ISBN: 978-1-4799-1542-2, 2013 ‱Mata GarcĂ­a, L., Deserti, A., Teixeira, J.C . Entrepreneurial Design: The Role of Design as Driver of Entrepreneurial Opportunity Generation and Assessment. International Journal of Entrepreneurship and Innovation Management. In Peer Review Process, 2014 17. PUBLICATIONS