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Designing business v2.0


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Overview of the application of design principles to designing business.

Published in: Business, News & Politics
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Designing business v2.0

  1. 1. IngenioDesigningBusiness
  2. 2. Udagawa, Antenna Design, NYThe purpose of design is to guide theuser - through artifacts - towardscertain behavior, called for by theprogram.
  3. 3. MP3 Player i-PodWhich one has 75% market share?
  4. 4. Notord+ =Stanford Research InstituteInnovation is not R&D...InnovationSuccessfulCommercializationA New Idea
  5. 5. NotordDoblin ConsultingInnovation is not just product...
  6. 6. Who is designing ourbusinesses?
  7. 7. A Shift of Perspective:CreateConceptsBuildBusinessFit them toUsersFrom:Courtesy Thoughtfull DesignCreateConceptsUnderstandUsersIdentifyBusinessGoalsTo:
  8. 8. 2_Thinking
  9. 9. NotordYour Brain
  10. 10. NotordThinking ProcessesDeductiveProcess ofvisualization,iteration tofind best-fitconclusionAbductiveWhat needs tobe true toprove thehypothesis?Generalconclusion ortheory thatmay or maynot be true.InductiveMany specificobservationsStarts withhypothesis orconclusionIncompleteobservations;ambiguity
  11. 11. NotordCourtesy IdeoDesign Thinking
  12. 12. 3_DesignIntent
  13. 13. Zig ZiglarIf you aim at nothing you will hit itevery time.Being PurposefulDesign Perspective #1
  14. 14. Running away from thepast?OR building toward animagined future?PastFuture?+x%?
  15. 15. Sharing PurposePurpose = something to believe in >Culture = something to belong to >User Experience = something tocontribute to >Design Perspective #2
  16. 16. Shared purposemust balancestakeholder anduser needs.
  17. 17. 4_DesigningBusiness
  18. 18. NotordDesign FrameworkViabilityFeasibilityIs the business capable ofdelivering?Is the business modelproductive andsustainable?Is the proposed solutionhighly desirable to targetusers?Desirability
  19. 19. Ernest HemingwayWhen people talk, listen completely.Most people never listen.Insights drive innovationDesign Perspective #3Desirability
  20. 20. Generate designconcepts from userinsights.Empathy > InsightsDefine the User ProblemIdeate Possible Concepts(Market research is not empathy!)Desirability
  21. 21. Viability insights canbe discovered easilywith these two criticalperspectives:Viability1_Strong competitive strategydrives low-cost market sharegrowth.2_An efficient business modelfacilitates productive growth.
  22. 22. Competitive Strategy ViabilityDesign Perspective #41_ Scope:What is the scope of thebusiness?2_ Competitive Advantage:What is the source ofdefensible competitiveadvantage?
  23. 23. NotordReference: Michael PorterOnly 3 Generic Strategies: ViabilityMost NZ companiesneed to competeglobally at the righthand side of thiscontinuum...NZ Export Insight:CustomerBase andPotentialScale1_Scale2_Differentiation3_FocusAbsolute cost of distribution declines >>Gross Margin increases as a % of sales >>EG: Triumph Elle MacphersonIntimatesQP Sport
  24. 24. NotordEfficient Business Model ViabilityDesign Perspective #5SalesGrossMarginCostsBalanceSheetCash FlowMarginal sales should be easy to getConsistent sales levels facilitate resource balancingConsistent cash flows make borrowing easyLow asset intensityLow receivables daysHigh inventory turnPremium pricing ensures high marginsLow obsolescence minimizes margin dilutionFlexible fixed costs minimizes riskHigh operating leverage allows profit to grow faster than sales
  25. 25. No need to over-complicate businessmodeling!SalesUpCostsDownWiden MarginReduceInvestment“SUCDRI”Courtesy of Graeme HartViability
  26. 26. Increase capability to increase possibility- Training- Collaboration- Hiring- EnvironmentGovernance andAdvisoryTeamCapabilityTechnologyFeasibility- External Directors- Advisory Board- Consultants- Networking- Conferences- TravelHow to find out what you“don’t know you don’tknow”.Hire a diverse team that“scares you”.- R & D- Time for Design Thinking- Buying in or licensing- PartneringDevelop somethingvaluable and hard to copy.Design Perspective #6
  27. 27. 5_Questions