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Applying Design Thinking in B2C & B2B Fortune 500's (POLISHOPA 2019 Conference)

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Design Thinking has gained much attention at strategic and executive levels within Fortune 500 corporates to manage global disruption. Mike shares first hand insights guiding c-level executives and project teams whilst designing and facilitating Design Thinking, Lean Startup and Business Model Innovation with some of the World’s largest organisations.

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Applying Design Thinking in B2C & B2B Fortune 500's (POLISHOPA 2019 Conference)

  1. 1. Polishopa Design Thinking Conference 2019 Opera Nova, Bydgoscz
 June 3rd 2019 Applying Design Thinking in B2C & B2B Fortune 500’s
  2. 2. Cześć! Hi there! 2
  3. 3. 3
  4. 4. We make corporates innovate like start-ups
  5. 5. 5 We help corporates worldwide to design & execute innovation programs CROSS-INDUSTRY B2B/B2C
  6. 6. We are an international team with superpowers Our team crosses borders and countries. Our innovation programs are tailor-made for geographical and cultural context A GLIMPSE ON SOME OF OUR ACTIVITIES WORLD-WIDE eHealth Corporate 
 Venture Support Digital Business Model Design Innovation & Creativity Program Lecture Urban Innovation Next Gen Product Exploration Fortune 500
 Innovation Strategy Franchising Business Model Design Intrapreneurial Training Telecom Business Masterclass Airport of the Future Keynote Business Innovation Bootcamp program Banking Ecosystem Business Design Healthcare Market DisruptionDisrupt Energy Market Innovation Process Workshop Innovation Training Office in Belgium Office in NY Innovation Strategy 25+ countries 5 continents 10+ nationalities Our work: Our team:
  7. 7. 7 We help corporates to innovate like startups. BUSINESS DESIGN We build capabilities, not dependencies. TALENT DEVELOPMENT We guide you from design to execution. STRATEGY
  8. 8. Mike Pinder EXPERTISE LEAD & SENIOR INNOVATION CONSULTANT Cross-disciplinary background in Design, Business & Innovation throughout B2B & B2C Specialised as expertise lead across management of innovation, Design Thinking, business modelling, corporate intrapreneurship… Strong academic theoretical perspectives Hands-on industry experience in high-tech R&D startups Guest Editor Service Design Network (SDN) Touchpoint
  9. 9. Forthcoming SDN Touchpoint Journal Article 9 Service Design While Innovating Like a Start-up in Fortune 500’s: The Role of Service Design in Large Corporate Project Teams June (2019)
  10. 10. Design Thinking & Service Design on a higher level Differences in B2B Common problems & solutions in Fortune 500’s
  11. 11. 11 Feasibility (Technology) Viability (Business) $
  12. 12. 12 The Excel theatre…
  13. 13. 13 3. Feasibility (Technology) 2. Viability (Business) $ 1. Desirability (Human) Always start here Innovation sweet spot
  14. 14. “Life is too short to build something nobody wants” Ash Maurya, Running Lean
  15. 15. Methodologies to help make knowing manageable & repeatable
  16. 16. 16 DISCOVERY PROBLEM FIT SOLUTION FIT MARKET FIT SCALING
  17. 17. 17 DISCOVERY PROBLEM FIT SOLUTION FIT MARKET FIT SCALING CUSTOMER DESIRABLILTY UNKNOWN UNKNOWNS KNOWN UNKNOWNS KNOWN KNOWNS UNKNOWN KNOWNS BUSINESS MODEL VIABLILTY TECHNICAL FEASIBLILTY RESEARCH ASSUMPTIONS RESEARCH ASSUMPTIONS
  18. 18. 18 DISCOVERY PROBLEM FIT SOLUTION FIT MARKET FIT SCALING CUSTOMER DESIRABLILTY UNKNOWN UNKNOWNS KNOWN UNKNOWNS KNOWN KNOWNS UNKNOWN KNOWNS BUSINESS MODEL VIABLILTY TECHNICAL FEASIBLILTY RESEARCH ASSUMPTIONS RESEARCH ASSUMPTIONS
  19. 19. 19 DISCOVERY PROBLEM FIT SOLUTION FIT MARKET FIT SCALING CUSTOMER DESIRABLILTY UNKNOWN UNKNOWNS KNOWN UNKNOWNS KNOWN KNOWNS UNKNOWN KNOWNS BUSINESS MODEL VIABLILTY TECHNICAL FEASIBLILTY RESEARCH ASSUMPTIONS RESEARCH ASSUMPTIONS
  20. 20. 20 DISCOVERY PROBLEM FIT SOLUTION FIT MARKET FIT SCALING CUSTOMER DESIRABLILTY UNKNOWN UNKNOWNS KNOWN UNKNOWNS KNOWN KNOWNS UNKNOWN KNOWNS BUSINESS MODEL VIABLILTY TECHNICAL FEASIBLILTY RESEARCH ASSUMPTIONS RESEARCH ASSUMPTIONS
  21. 21. 21 CUSTOMER DESIRABLILTY UNKNOWN UNKNOWNS KNOWN UNKNOWNS KNOWN KNOWNS UNKNOWN KNOWNS BUSINESS MODEL VIABLILTY TECHNICAL FEASIBLILTY RESEARCH ASSUMPTIONS RESEARCH ASSUMPTIONS test learn measure build concept prototype / mvp prototype empathize define ideate assumptions features monetization options sprint testing at scale quantitative validation business model canvas ballpark figures business model kit plan review retrospective business model innovation prototype sandbox design sprintslean startup design thinking agile development
  22. 22. 22 CUSTOMER DESIRABLILTY UNKNOWN UNKNOWNS KNOWN UNKNOWNS KNOWN KNOWNS UNKNOWN KNOWNS BUSINESS MODEL VIABLILTY TECHNICAL FEASIBLILTY RESEARCH ASSUMPTIONS RESEARCH ASSUMPTIONS test learn measure build concept prototype / mvp prototype empathize define ideate assumptions features monetization options sprint testing at scale quantitative validation business model canvas ballpark figures business model kit plan review retrospective business model innovation prototype sandbox design sprintslean startup design thinking agile development
  23. 23. 23 The corporate way Waterfall = risky Release! Risk Time build build build build
  24. 24. 24 An iterative approach to knowing “Plans are useless, but planning is everything.” - D. Eisenhower - By breaking-up risk Release! Risk Time build Release! build Release! build Release! build Release! build
  25. 25. 25 Empathise Define Ideate Prototyping Testing PROBLEM PHASE - BUILDING THE RIGHT THING SOLUTION SPACE - BUILDING THE THINGS RIGHT 5 steps of design thinking
  26. 26. through Concrete Projects SHORT TERM Growing a Customer Centric Culture LONG TERM by building a Design Thinking Capability
  27. 27. 27
  28. 28. 28
  29. 29. …tools and methods are just a means to an end All well & good… but
  30. 30. Design Thinking (Service Design, Agile etc) are not enough by themselves…
 …they are part of a wider process
  31. 31. Innovation
  32. 32. 32
  33. 33. Innovation is: “the commercialisation of the idea” - Everett Rogers
  34. 34. 34
  35. 35. Design Thinking & Service Design on a higher level Differences in B2B Common problems & solutions in Fortune 500’s
  36. 36. 36 Design Thinking Stanford / IDEO Empathise Define Ideate Prototyping Testing
  37. 37. 37 Empathise phase is different Empathise Define Ideate Prototyping Testing Stanford / IDEO B2C Needs, problems & pains B2B Needs, problems & pains
  38. 38. 38
  39. 39. 39
  40. 40. 40
  41. 41. 41 B2B Empathy: problem exploration
  42. 42. 42 B2B Problem Scoring Inputs for How Might We? statement building Problem 1 Problem 2 Problem 3 Problem 4 Problem 5
  43. 43. 43 A B2B Innovation Accelerator Modules Module 1 Client challenges: Ideation & Prototyping Inspirational Startups Mapping Challenges Concept Development Round Tables
 & idea selection Ideation Rounds Minimal Viable Product, testing & assumption validation Lean Startup Module 2 Business Model Innovation & Executive Pitching Ecosystem mapping Value Proposition Development R&D Round Tables & model refinements Monetisation options Dragon’s Den Pitch PanelGo-to-market Planning Kick-off Webinar + Problem/opportunity spotting with customers Customer/stakeholder testing & feedback using prototype/MVP Reflection & apply learnings to job
 +
 Follow-up Webinar
  44. 44. 44 Metsa Bengt Lofroth Company Specialist Paper Production, 
 Operational Excellence Multidisciplinary teams Metsa Linda Wit Company Specialist Pulp Production, 
 Operational Excellence INDUSTRIAL INTERNET Arttu-Matti Matinlauri
 Director Industrial Internet Applications SALES 
 Per Holm
 Vice President
 EMEA Scandinavia STRATEGY Juha Lappalainen
 Senior Vice President Strategy & Operational Development Knowledge sharing & consult sessions SALES Mikko Tani Vice President 
 EMEA Sales & Marketing SERVICES Petri Lakka VP Service Development Customer 1 Customer 2 Customer 3 Client 1 Client 2 Client 3Client 4 Customer & partner round tables (15mins each)
  45. 45. 45 Focussing on the Value Proposition Definition of the problem you will solve for your target market, what it is worth to solve that problem and what is needed to create a desirable solution.
  46. 46. Technical buyer Concerned with: 
 
 Feasibility & Security
 
 “What can go wrong if we implement this solution?”
 46 Economic buyer Concerned with: 
 
 Cost/Revenue optimisation 
 “Will we earn by implementing this solution?” User buyer Concerned with: Satisfaction on a daily base 
 “Will the user like to use this solution?”
  47. 47. Technical buyer Concerned with: 
 
 Feasibility & Security
 
 “What can go wrong if we implement this solution?”
 47 Economic buyer Concerned with: 
 
 Cost/Revenue optimisation 
 “Will we earn by implementing this solution?” User buyer Concerned with: Satisfaction on a daily base 
 “Will the user like to use this solution?”
  48. 48. Technical buyer Concerned with: 
 
 Feasibility & Security
 
 “What can go wrong if we implement this solution?”
 48 Economic buyer Concerned with: 
 
 Cost/Revenue optimisation 
 “Will we earn by implementing this solution?” User buyer Concerned with: Satisfaction on a daily base 
 “Will the user like to use this solution?”
  49. 49. Design Thinking & Service Design on a higher level Differences in B2B Common problems & solutions in Fortune 500’s
  50. 50. Large organisations & ‘innovation’
  51. 51. 51 Why do large organisations (generally) exist?
  52. 52. 52 Traditional & Modern Companies Traditional Companies “PRODUCE PRODUCTS WITH GREAT RELIABILITY & QUALITY” Modern Companies “DISCOVER WHAT NEW PRODUCTS TO PRODUCE AS QUICKLY AS POSSIBLE” *Hint: BOTH SYSTEMS ARE NEEDED
  53. 53. 53 Traditional Modern Slow Risk averse All-or-nothing basis > maintain the existing Very rapid experimentation to find strategies to support long term growth > experimentation space+
  54. 54. 54 “The act of behaving like an entrepreneur while working within a large organization.” Guiding you through your journey in intrapreneurial innovation:
  55. 55. Get outside of your building
  56. 56. 56 Keeps participants away from meetings! Inspirational startup off-site hub locations Environment reinforces new behaviours
  57. 57. Outside-in validation
  58. 58. 58 Run Startup Safari’s Safari?!
  59. 59. 59 Startups explain their process and pre-validate your approach for you
  60. 60. Beware: 
 biases ahead
  61. 61. 61 Keep biases in conscious check at all times
  62. 62. 62
  63. 63. 63
  64. 64. 64
  65. 65. Methodology & mindset acceptance
  66. 66. 66Time Acceptance Design Thinking project team member skepticism Zone of skepticism Generativity & Flow
  67. 67. 67
  68. 68. 68 Keep it fun
  69. 69. Teams will naturally go for ‘safe’ innovation concepts
  70. 70. exisHng 
 offers exisHng
 markets adjacent 
 offers radically new 
 offers adjacent
 markets radicallynew
 markets 70 Incremental to radical innovations Radical innovations Incremental innovations Adjacent innovations TAKE AIM HERE
  71. 71. exisHng 
 offers exisHng
 markets adjacent 
 offers radically new 
 offers adjacent
 markets radicallynew
 markets Mission Sustainable Brain Farm Eco System Forecast Smarter Machines Boiler Pimp Renew Pack ProducHon Journey Process In Your Pocket Safety Network Operator Assistant Consump -Hon CuQer 71 Projects naturally become less radical by constraints iFiber ValopH Expert on Demand Liquor Swap Shutdown Conductor Break PrevenHon
  72. 72. Solution thinking…
  73. 73. 73 Jump to final solutions?
  74. 74. 74 Don’t allow teams to bring solutions to Design Thinking programs!
  75. 75. Teams will try to complicate things
  76. 76. 76 So use the K.I.S.S. philosophy
  77. 77. 77
  78. 78. Use professional designer support
  79. 79. 79 1 landing page and 1 interactive MVP to test 6 assumptions in 1.5hrs for a new concept
  80. 80. Misunderstanding your prototypes & MVP’s
  81. 81. “MVP’s are not final solutions: 
 …they are a way of asking questions about critical assumptions within the features of your concepts (& business models)”
  82. 82. (in)Validated learning is what it’s all about aka: knowing
  83. 83. 83
  84. 84. Listen intensely after each day
  85. 85. 85 Mini therapy sessions at the end of each day
  86. 86. Finally, to sum up…
  87. 87. Key take-aways 87 Understand the wider innovation process, not just DT tools and methods
 Learn about cognitive biases & stamp them out for innovations’ sake!
 Design Thinking can be equally well applied in B2B as well as B2C
 We’re managing the pursuit of knowing as quickly & cheaply as possible
  88. 88. 88
  89. 89. Mike Pinder mike.pinder@boardofinnovation.com 89 Questions? Just ask Thank you! boardofinnovation.com/tools Connect on LinkedIn! linkedin.com/in/mikepinder www.mikepinder.co.uk

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