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Innovation, design thinking, and competitive advantage

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A quick talk from the Cape Town funding fair. Exponentials and the imperative for innovation. The trouble with innovation in corporations. Wicked problems and complex adaptive systems. How design thinking works. What design thinking does do, in Digital. Design thinking counteracts our tendency for poor decision making.

Published in: Design

Innovation, design thinking, and competitive advantage

  1. 1. INNOVATION,DESIGNTHINKING
 ANDCOMPETITIVEADVANTAGE Phil Barrett
 Associate director, Deloitte Digital Africa @philbuktoo
  2. 2. WORLDWIDEDIGITALREVOLUTION San Francisco Orlando Denver Seattle Los Angeles Mexico City Cape Town Johannesburg Washington DC Toronto Brussels Amsterdam Camp Hill Sao Paulo New York Belfast Edinburgh Lisbon Paris Madrid Zurich Milan Dublin Bengaluru Delhi Mumbai Hyderabad Gothenburg WarsawMunich Łódź Stockholm London Perth Singapore Luxembourg Shanghai Adelaide Melbourne Brisbane Canberra Auckland Sydney Tokyo Studio Delivery Center Hub 24 Countries 26 Studios 5500+ Global Headcount 1100+ US Headcount 1500+ US India Headcount 41K+ APAC 71K+ EMEA 89K+ Americas 202K+ Global 150+ Countries Deloitte Digital Footprint Deloitte Footprint LOCALSOUTHAFRICANTEAM.
  3. 3. LOOKINGATPROBLEMSTHEOTHERWAYUP Amazon’s warehouse robots move the shelves to the packers. This means no pickers, and a continually optimised storage layout.
  4. 4. The rate of change in technology is faster than it has ever been. And it is increasing more steeply than it ever has. IT’SEXPONENTIALCHANGE.
  5. 5. ORGANISATIONSDYINGOFF,CHANGING,GROWING… FASTERTHANEVER
  6. 6. Machine learning Genomics Biometrics Internet of Things Blockchain Robotics3D Printing Drones VR Wearables Connected Cars Mobile Analytics Social Cloud Web Content EXPONENTIALTECHNOLOGIES Super Disruptors… Exponential Disruptors…
  7. 7. EHANG184PERSONALDRONE
  8. 8. “ Tim Brown, IDEO Innovation has become nothing less than a survival strategy. EXPONENTIALSDEMANDINNOVATION
  9. 9. INNOVATION:CREATIVITYINTHESERVICEOFPROFITABILITY Finding worthwhile new things to do. Finding better ways to do what we already do. 10% 10x “Optimisation?” “Disruption?”
  10. 10. “ DISRUPTIVEINNOVATION:YOURPERSONALMONOPOLY Creative monopoly means new products that benefit everybody and sustainable profits for the creator. Competition means no profits for anybody… Peter Thiel, 
 Co-founder of PayPal
  11. 11. THETROUBLEWITHINNOVATION
  12. 12. INNOVATION.ITSUREISDIFFICULT.
  13. 13. OPERATIONAL BUSINESSES ARENOT INTENDEDFOR INNOVATION
  14. 14. THECORPORATEIMMUNESYSTEMKILLSINNOVATION Disruptive innovation jeopardises existing margins and the tried and tested recipe.
  15. 15.
  16. 16. SOCORPORATIONSNEEDSTARTUPS • Invest to help grow promising businesses • Acquire successful new businesses • Partner to drive new thinking • Invent in their own innovation outposts • Incubate by supporting new businesses with resources
  17. 17. COMPLEXSYSTEMSAND
 WICKEDPROBLEMS Many systems, markets and organisations are beyond complicated - they are complex. • A lot of diverse elements, interconnected. • Unpredictable: Doing the same thing twice doesn’t necessarily get you the same result. • Can’t be solved, only improved.
  18. 18. + + = ?? + + = ??!! EXPONENTIALTECHNOLOGIESCOMBINEIN UNPREDICTABLEWAYS
  19. 19. THEPEOPLEINOURCOMPLEXSYSTEMSAREEMOTIONAL Idealised “econ”: Optimal decisions. Actual Human: Emotional decisions.
  20. 20. DESIGNTHINKINGCANHELP The process of design squiggle
  21. 21. DESIGNTHINKING
  22. 22. “ FORSUCCESS,INNOVATECUSTOMER-FIRST You’ve gotta start with the customer experience and work backwards to the technology. Steve Jobs
  23. 23. IFYOU’REBUNGEE JUMPING… …USEACORD!
  24. 24. DESIGNTHINKINGUSESASTRUCTURED,
 HUMAN-CENTREDPROCESS The “human-centred design” process (HCD). EMPATHISE DEFINE IDEATE PROTOTYPE &TEST Diverge Converge Diverge Converge Ready to start….
  25. 25. KEYINGREDIENTSFORDESIGNTHINKING Make things Observe people Test and improve Collaborate Think broadly, 
 decide precisely
  26. 26. “ Companies that use design strategically grow faster and have higher margins than their competitors. Apple, Coca-Cola, Ford, Herman- Miller, IBM, Intuit, Newell- Rubbermaid, Procter & Gamble, Starbucks, Starwood, Steelcase, Target, Walt Disney, Whirlpool, and Nike… Jeneanne Rae, Writing in HBR DESIGN-LEDCOMPANIESAREOUT-PERFORMERS
  27. 27. COST WHYGOODDESIGNMAKESSUCCESSFULBUSINESSES REVENUE Drive uptake Convert more new customers Keep customers with you Charge more for your products Lower marketing costs Lower customer service costs Lower training costs Lower delivery costs Less wasted effort building the wrong stuff
  28. 28. SEEFROMTHECUSTOMER’SPOINTOFVIEW Techniques: Immersive research, diaries, interviews with games and storytelling. EMPATHISE
  29. 29. IDENTIFYTHEPROBLEMSTOSOLVE Techniques: Maps, models, stories, principles, problem statements. DEFINE
  30. 30. THINKINGDIFFERENTTOFINDNEWSOLUTIONS Techniques: CVP and ideation workshops, with tools to drive lateral thinking. IDEATE
  31. 31. MAKEMOCKUPSANDTRYTHEMOUT Techniques: Mockups of interfaces, artefacts and environments. User testing sessions. MOCK& TEST
  32. 32. “A prototype is worth a thousand meetings. Todd Wilkens Design Principal at IBM Design
  33. 33. YOUHAVETODOITWITH110%CONVICTION • Immerse yourself: think in the shower. • Face the discomfort of identifying problems with existing ideas. • Keep practising: Just like for every new skill you want to truly master. Flickr:RobertoTrombetta
  34. 34. DESIGNTHINKINGISJUSTTHESTART Stage 3 SCALEAND EXTEND Build and test to prove the right concept, target customers, business model… Roll out to more users, and roll out extended features PRODUCT MARKETFIT Stage 2 Human-centred design Lean startup Lean UX Stage 1
  35. 35. By Hugh McLeod: www.gapingvoid.com DON’TSLIPINTOTHISKINDOFTHINKING
  36. 36. DESIGNTHINKINGCOMBATSPOORDECISIONMAKING Availability bias: 
 Only consider what’s in front of you. Confirmation bias: 
 Look for information that confirms our beliefs. Status Quo bias: Consider any change as a loss. Discover new insights. Try out new ideas and demonstrate their potential Iterative testing, well defined target outcomes force you to face uncomfortable evidence.
  37. 37. “Assume that your strategy may be wrong. Develop plans for learning what needs to be known - a much more effective way to confront disruptive technologies successfully. Clayton Chistensen The Innovator’s Dilemma
  38. 38. THANKS.@philbuktoo

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