Design Thinking and the Business Model Canvas for the Mobile Economy

1. 10/02/2014 Workshop 1 Serge Van Oudenhove

2. WHAT IS DESIGN THINKING ? 2

3. “Design thinking can be described as a discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity.” Tim Brown (Ideo) 3

5. Design thinking is a problem solving method Five Iterative Steps Process Ideate Empathize Define Prototype Test 6

6. 1. EMPATHIZE Ideate Empathize Define Prototype Test 7

8. WHAT is the empathize mode ? Empathy is the foundation of a human-centered design process • Observe: View users and their behavior in the context of their lives • Immerse: Experience what your user experience • Engage: Interact with and interview customers 9

9. Observe and look through customers’ eyes… 10

10. Live like the customers… 11

11. And interact with users through interviews HOW to prepare for an interview: • Brainstorm questions • Identify and order themes • Reﬁne questions: How the user FEELS Read the Interview Preparation guide from the D.School 12 http://www.oercommons.org/media/upload/authoring/1686/documents/dSchool_interview.pd

12. GO OUT TO TALK TO YOUR CUSTOMERS ! 13

13. 2. DEFINE Ideate Empathize Define Prototype Test 14

14. WHAT IS THE PROBLEM YOU WANT TO SOLVE ? 15

15. “If I had an hour to solve a problem solution. I would spend the ﬁrst ﬁfty minutes determining how to… Frame the problem ...for once I know the proper question to ask I can solve the problem in less than 5 minutes” Albert Einstein 16

16. WHAT is the define mode ? Synthesize your empathy findings into needs and insights • Focus rather than flaring • Develop a deep understanding of your users • Come up with an actionable problem statement 17

17. Some useful empathy tools Empathy Map Value Proposition Canvas The Customer Journey Map 18

18. The Empathy Map Relying on your interview notes, write what the customers Read the Empathy Map article http://fr.slideshare.net/Solvay_Entrepreneurs/fiche-toolkit-empathymap?utm_source=ss&utm_medium=upload&utm_campaign=quick-view 19

19. The Value Proposition Canvas Relying on your interview notes, define what are the customer’s • Jobs to be done • Pains • Gains Read the following article http://www.innovationexcellence.com/blog/2012/10/07/the-value-proposition-canvas/ 20

20. The Customer Journey Map Describes the journey of a customer and emphases on • The goal of your customers • The customer experience flow • The touch points that characterize the service experience • The interaction and the relationship 21

21. The Customer Journey Map 22

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23. 3. IDEATE 24

24. 3. IDEATE Ideate Empathize Define Prototype Test 25

25. WHAT IF ? 26

26. WHAT is the ideation mode ? Focus on idea generation • Going Wide in term of concepts and outcomes • Flaring rather than Focus • Explore a wide solution space • Quantity and Diversity of ideas 27

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28. Ideation is a team exercise 29

29. Some useful ideation tools Mind-Mapping Brainstorming Visual-Thinking 30

30. 4. Prototype Ideate Empathize Define Prototype Test 31

31. WHAT is the prototype mode ? Getting ideas out of our head in a physical world • Several physical forms • Linked to the progress of your exploration • Explore possibilities with rapid iterative prototyping • Fast learning approach 32

32. A prototype can be anything… 33

33. Linked to the progress of your project… http://www.wired.com/design/2013/09/appseed-transforms-your-sketches-into-app-prototypes/ 34

34. In order to learn fast from your users 35

35. Prototypes are most successful when people interact with them… …What you learn from those interactions can help drive deeper empathy, as well as shape successful solutions. 36

36. Prototyping a mobile app Design Mobile user experience 37 Build Mobile technology

37. BUILD THE EXPERIENCE, NOT THE TECHNOLOGY ! 38

38. 5. TEST Ideate Empathize Define Prototype Test 39

39. “Failure is simply the opportunity to begin again, this time more intelligently.“ Henry Ford 40

40. WHAT is the Test mode ? Testing is the chance to refine your solution • Real context in use • Hypothesis validation • Get feedback from our users • Use Metrics 41

41. Test it in the real context

42. Get Feedback 43

43. Metrics that matters • Number of users • Conversion • Engagement • Virality • App-Ranking 44

44. User-Centered Design Process EMPATHIZE TEST IDEATE PROTOTYPE 45 DEFINE

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46. BUSINESS MODEL DESIGN 47

47. 48

48. “A business model described the rationale of how an organisation creates, delivers, and captures value” Alex Osterwalder 49

49. questions 50

50. A Business Model Who? What ? How ? How Much ? Markides (1999) 51

51. The 4 mains questions are… • Who is the customers ? • What is the bundle of product and services ? • How to create and deliver the value ? • How much cash-flows are generated ? 52

52. 4 Questions How ? - 53 What ? How Much? Who ? +

53. 9 Building Blocks How ? What ? - Key Activities - Product - Service - Key Ressources - Partnership - Customers segments - Channels - Customer relation -€ - Cost structure 54 Who ? How Much? Financial Aspect + +€ Revenue Streams

54. The Business Model Canvas • 9 Building Blocks • Concept and relations between building blocks Alexander Osterwalder & Yves Pigneur (2009) 55

55. Building Blocks 56

56. 9 Building Blocks Key Activities Value Proposition Customer Relationships Key Partnership Customer Segments Key Resources Channels Cost Structure 57 Revenue Streams 57 Business Modeling

57. Building Blocks 1. Customer Segments • Mass Market • Niche Market • Segmented • Diversified • Multi-sided Platforms Who are your most important clients ? 58 Who ?

58. Building Blocks 2. Value Proposition • Newess • Performance • Getting the job done • Design What ? • Usabililty • … What is your solution to the problem ? 18/10/2013 59 59 Business Modeling

59. WHAT IS THE PROBLEM YOU WANT TO SOLVE ? 60

60. The product-market fit Le Value Proposition Canvas Alexander Osterwalder (2012) What ? Who ?  Empathize  Define the problem to solve  Ideate the solution that fit the problem 18/10/2013 61 61 Business Modeling

61. The value proposition designer What ? 18/10/2013 62 Who ? 62 Business Modeling

62. Some value proposition examples Capture and share the world’s moments. Give people the power to share and make the world more open and connected. Makes it easy to remember things big and small from everyday life using your phone, tablet, computer and the web. 18/10/2013 63 63 Business Modeling

63. “In the mobile context, you need to explain what you do in 30 seconds or less because people move on to the next shiny object... …. There are so many apps and people are vying for your attention on the go… ... You're not sitting in front of a computer; you're at a bus stop or in a meeting." Kevin Systrom Instagram Founder

64. Value proposition workshop 18/10/2013 65 Business Modeling

65. Value proposition workshop 18/10/2013 66 Business Modeling

66. GET OUT OF THE BUILDING !

67. Building Blocks 3. Channels • App Store and Android Store • API • Web-site and social network • Blog, reviews, YouTube video Who ? • People and virality • Sales Forces How to attract customers ? 18/10/2013 68 Business Modeling

68. Building Blocks 4. Customer relationships • Engagement plan • Automation • Community • Network effect Who ? – Same-Side – Cross-Side How to keep customers ? 18/10/2013 69 Business Modeling

69. Building Blocks 5. Revenue streams • Build the audience first • Some revenues streams Who ? How to make money ? 18/10/2013 70 Business Modeling

70. Building Blocks 6. Key activities The most important things that the company must do • Design • Development • Grow users base throug Marketing How ? • Data Analysis What are the key activities ? 18/10/2013 71 Business Modeling

71. Building Blocks 6. Key activities 18/10/2013 72 Business Modeling

72. Building Blocks 7. Key ressources The most important assets of the company • Human • Financial • Data and mobile app • Technology Infrastructure What are the key ressources ? 18/10/2013 73 Business Modeling How ?

73. Building Blocks 8. Key partners Networks of suppliers and partners • Google Play and App Store • Blog and ambassadors • Business Angel and VC’s How ? • Innoviris Who are your key partners ? 18/10/2013 74 Business Modeling

74. Building Blocks 9. Cost Structure • Development • Marketing • Servers What are the main costs ? How Much ? 18/10/2013 75 75 Business Modeling

75. The Business Model Canvas How ? What ? Who ? How Much ? 18/10/2013 76 76 Business Modeling

76. App Store Development Google Play Design Investors Automation Take and share great pictures Social Network Users Grow user base Server and Data (photo) Hosted Platorm Great photos APIs Web Forum App Store Google play Developer Site and APIs FREE Marketing Development FREE 77

77. WHAT IS YOUR BUSINESS MODEL ? 78

78. 18/10/2013 79 79

79. Business model workshop 18/10/2013 80

80. At this stage, it is only a set of hypothesis… ? ? Hypothesis 18/10/2013 81 ? ? ? Hypothesis ? ? ? Hypothesis ?

81. TEST IT ! 82

82. Go out and validate your hypothesis 83

83. THANKS FOR YOUR ATTENTION 84