Bridge.program.overview

DESIGNING THE FUTURE OF BUSINESS
DESIGN BUSINESS BRIDGE

Design Business Bridge: Designing The Future of Business HMcGowan 2009
DESIGN BUSINESS BRIDGE: DESIGNING THE FUTURE OF BUSINESS
“Innovation Is an Invention That Generates
Revenue and Profit.”
AG Lafley
CEO
Organic Revenue Grew in Excess of 6% Annually Since the
Adoption of Design Thinking Strategy at Proctor and Gamble

Business Needs Designers
DESIGNERS CAN INVENT
Empowered With the Tools and Language of
Business, Designers Are Uniquely Qualified to
INNOVATEINNOVATE

Innovation is a three-legged stool:
DESIGN/USER NEEDSDESIGN/USER NEEDS
ENGINEERING/TECHNOLOGYENGINEERING/TECHNOLOGY
BUSINESSBUSINESS
Designers are uniquely qualified to innovate by applying
design thinking to both technology and business

DESIGNDESIGN
Illumination Invented
Engineering/TechEngineering/Tech
nologynology
Infrastructure +
Delivery
BUSINESSBUSINESS
Creation +
Monetization of
ServiceINNOVATION: LIGHT BULB IN CONTEXT

INNOVATION: DISRUPTION OF THE MUSIC INDUSTRYINNOVATION: DISRUPTION OF THE MUSIC INDUSTRY
DESIGNDESIGN
Beautiful, Intuitive, Flawless Prod
Engineering/TechnologyEngineering/Technology
Copyright Protection That Satisfied Industry .aac
BUSINBUSIN
ESSESS
An
Orderly
User
Friendly
Marketp
lace

INNOVATION: COMMODITY PRODUCT
DESIGNDESIGN
Convenience, Simplicity, Coffee on Dem
Engineering/TEngineering/T
echnologyechnology
Patented
Brewing Process
BUSINESSBUSINESS
Built In
Reoccurring
Revenue, High
Switching Costs

DESIGN MBA BRIDGE
PROCESSPROCESSOFFERINGOFFERING DELIVERYDELIVERYFINANCEFINANCE
BUSINESSBUSINESS BUSINESSBUSINESS
Ten Types of Innovation TM Doblin Group
DESIGNERDESIGNER
TRADITIONAL DESIGN
Industrial - Fashion - Interior- Architecture - Graphic- Advertising
EXPANDING THE DESIGNER’S IMPACT ACROSS THE
INNOVATION SPECTRUM

STRUCTURE: MODULES
BusinessBusiness
ModelsModels
VALUE
Marketing +Marketing +
ManagementManagement
CUSTOMER
Statistics +Statistics +
OperationsOperations
DECISIONS
FinancialFinancial
EVALUATION
Each module will run 4 hours a day for 2 weeks
Assessment and refinements will be made between modules, as required, to meet student goals
INNOVATIONINNOVATION
PROCESS OFFERING DELIVERY FINANCE

ProcessProcessOfferingOffering DeliveryDeliveryFinanceFinance
The Innovation Stream will run through all four modules
exploring Apple and Proctor and Gamble.
Students will explore evolutions in their business models,
marketing and management procedures, strategies, operations,
and finance.
Doblin’s Ten Types of Innovation™ will be referenced
throughout the modules as students track the various forms of
innovation and synergies with design thinking.

PROFIT MODEL
INFRASTRUCTURE CUSTOMERSOFFER
(C) Alex Osterwalder Business Model Innovation Hub
Bridge Overview Structure: Osterwalder’s Business Model Canvas

What is a market
channel?
What is a market
segmentation?
What is a target
market?
What are they key
positions in an
executive
management team,
key functions ?
What are different strategies
around customer acquisition and
customer retention?
What is the product or
service development
process?
What are
strategic
alliances?
What is the concept
of cannibalization
and channel conflict?
CUSTOMER
How do you engage the
customer in either
creating the value
proposition or
continuous
improvement?
What are pricing strategies?
What is product
positioning and how and
why do you do an
industry analysis?
Business Model Canvas: Business Model Innovation Hub, authors: Yves Pigneur and Alex Osterwalder http://www.businessmodelhub.com/

How can I use
statistics to measure
a market size?
What does a Chief
Operations Officer
(COO) do ?
How can I use statistics
to define customer
preferences?
What is knowledge
management?
How can I use data
from my suppliers
or distributors to
inform product
development?
How can I use data
from my
distribution
channels?
DECISIONS
How can I get and use
market feedback?
How does your supply chain build your cost structure
How can I use statistics to
understand my offering in the
marketplace against
alternatives?

How can I
understand the
revenue of each
customer segment?
How can I
decide how to
finance my
business?
How can I understand my
revenue by customer?
What is cost of sales? cost
of goods sold?
How can I
partner to
reduce my
costs?
What are my sales costs and how
can I minimize these distribution
costs?
Finance +Finance +
EconomicsEconomics
EVALUATION How can I
understand my
revenue growth,
decline?
What is a gross profit margin? Net profit?
fixed vs. variable costs?
Other concepts
What is a cash flow
statement and why does it
matter
What is a balance sheet
and how do you read it
What is an income
statement and why do I pay
attention to profit and loss
Why and how are
companies valued

CONCEPTS EXPLORED AND PROBED:CONCEPTS EXPLORED AND PROBED:
• OVERVIEW OF DESIGN PROCESS
• CONCEPTUAL MAPPING OF BUSINESS MODELS
•CUSTOMER EXPERIENCE
•VALUE PROPOSITION
•REVENUE + PROFITABILITY MODEL
•RESOURCE REQUIREMENTS
•KEY PROCESSES + NETWORKS
BusinessBusiness
ModelsModels
VALUE

BUSINESS MODELS AND CONCEPTS EXPLOREDBUSINESS MODELS AND CONCEPTS EXPLORED
BUS
INE
SS
MO
DEL
-
DIS
RUP
TIO
N
OF
AN
IND
UST
RY
OVATION- CUSTOMER IS BOSS
DESIGN
PROCESS,
DESIGN
THINKING
LITY, PRODUCT VS. SERVICETHE REVENUE
OPPORTUNITI
ES IN
“FREECONOM
ICS”
ING NEW MARKETS CO-CREATED VALUE
VALUE MODULE

CONCEPTS EXPLORED AND PROBED:CONCEPTS EXPLORED AND PROBED:
•PRODUCT DEVELOPMENT + POSITIONING
•PROMOTION
•BRANDING
•CUSTOMER BEHAVIOR
•TARGET MARKETING
•SOCIAL NETWORKING
CUSTOMER

MARKETING + MANAGEMENT CONCEPTSMARKETING + MANAGEMENT CONCEPTS
PRO
DU
CT
+
MA
RKE
TIN
G
INN
OV
ATI
ON
OVATION- IDEAS TO MARKETPRODU
CT +
BRAND
ING
PARTN
ERSHIP
S,
CUSTO
MER
EXPERI
ENCE
MARKET
ING THE
PROMIS
E, USE
OF
SOCIAL
NETWO
RKING
MER CO-CREATED VALUEDESIG
N
STRAT
EGY,
PRODU
CT
DEVEL
OPMEN
T,
POSITI
ONING
CUSTOMER MODULE

Concepts Explored and Probed:
•Corporate Decision Making
•Supply Chain
•Statistical Analysis
•Quality Control
DECISIONS

STATISTICS + OPERATIONS CONCEPTSSTATISTICS + OPERATIONS CONCEPTS
QU
ALI
TY
AS
AN
IMP
EDI
ME
NT
TO
INN
OV
ATI
ON
NG INNOVATION STRUCTURE
DECISIONS MODULE
DESIGN FOR
MANUFACTURIN
G, SUPPLY
CHAIN
EFFICIENCIES
ATISTICS IN PRODUCT DEVELOPMENTMA
NA
GI
NG
GL
OB
AL
SU
PPL
Y
CH
AI
N
PA
RT
NE
RS
IN
PR
OD
UC
T +
RE
TAI
L
IMPACT
OF A
FLEXIBLE
SUPPLY
CHAIN
ON
RETAIL
PRODUC
T

Concepts Explored and Probed:
•Investing + Operations Decisions
•Financial Statements
• Income Statement (Profit & Loss)
• Cash Flow Statement (Real Money)
• Balance Sheet (Own and Owe)
FinancialFinancial
EVALUATION

STATISTICS + OPERATIONS CONCEPTSSTATISTICS + OPERATIONS CONCEPTS
FIN
AN
CIA
L
IMP
ACT
AN
D
OU
TLO
OK
FRO
M
INN
OV
ATI
ON
(IPO
D
TO
IPH
ON
E)
FINAN
CIAL
PROJEC
TIONS-
NEW
OFFERI
NGS
(EX: MR
CLEAN
CAR
WASH
FRANC
HISE)
FINANCE MODULE
PRICING, VOLUME,
OPERATIONAL
EFFICIENCIES
ING FROM THE BRINK OF BANKRUPTCY
IMPACT OF INNOVATION IN FINANCIAL OFFERINGS TO CUSTOMERS
GLOBAL FINANCE
INNOVATIONS:
MICROFINANCE

SCHEDULE
BusinessBusiness
ModelsModels
VALUE
May 18-May 29
2009
Management:Management:
CUSTOMER
June 1-June 12
2009
DECISIONS
June 15-June 26
2009
FinancialFinancial
EVALUATION
June 29-July 10
2009
InnovationInnovation

Bridge.program.overview

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