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EXERCISE   #1:



“What is it that
 designers do?”
Business needs
design now, more
than ever.
“
Design, in short, is becoming an ever more
important engine of corporate profit: It's
no longer enough simply to outperform the
competition; to thrive in a world of
ceaseless and rapid change, businesspeople
have to outimagine the competition as well.
They must begin to think – to become –
more like designers.

-Roger Martin, dean of the Rotman B-school



             http://www.fastcompany.com/magazine/109/open_design-tough-love.html
“
Design, in short, is becoming an ever more
important engine of corporate profit: It's
no longer enough simply to outperform the
competition; to thrive in a world of
                  W   hat kind
ceaseless and rapid change, businesspeople

                  of – to sign?
have to outimagine the competition as well.
They must begin to think debecome –
more like designers.

-Roger Martin, dean of the Rotman B-school



             http://www.fastcompany.com/magazine/109/open_design-tough-love.html
Product design
Product
 Design


          Experience
            Design
Product
 Design


          Experience
            Design


Design of
 Business
Digital Music,
   c.2001


Design of
 Business
Hard
             Drive?
     Flash
    drive?

        MP3 CD?


                                  ‘Rip’ my CD?
                 Digital Music,
                    c.2001
   MP2?

 MP      AIFF?
what?
        Wav?
    MP3?         Design of
                  Business
Hard
             Drive?
     Flash
    drive?

        MP3 CD?


                              ‘Rip’ my CD?
                 “No Market
   MP2?
                   Leader”
 MP      AIFF?
what?
        Wav?
    MP3?         Design of
                  Business
Hard
             Drive?
     Flash
    drive?

        MP3 CD?


                             ‘Rip’ my CD?



   MP2?

 MP      AIFF?
what?
        Wav?
    MP3?         Design of
                  Business
Hard
             Drive?
     Flash
    drive?

        MP3 CD?


                                                                      ‘Rip’ my CD?

        “value of the
   MP2?   network”                                             Design.pdf
 MP      AIFF?
        www.andrewhargadon.com/Relea
                                    se/Hargadon_DMR_Leading_by_

what?
        Wav?
    MP3?            Design of
                     Business
lifestyle devices


                                           easy
                                       importing
                                        of music
                                       from CDs
                                       and other
                                       ‘sources’
                Product
                 Design
                                         (ahem!)
transparent               Experience
digital audio               Design
  formats

                Design of
                 Business
Design as
 outcome


Design as
 process
Design as
 outcome


Design as
 process     Jess McMullin
             www.bplusd.org
Design as
 outcome


Design as
 process     Jess McMullin
             www.bplusd.org
Design as
 outcome


Design as
 process     Jess McMullin
             www.bplusd.org
Design as
 outcome


Design as
 process
skills
 same  thinking tion)
            applica
(d ifferent

   Design as
   outcome


Design as
 process
skills
 same  thinking tion)
            applica
(d ifferent
                          ...and a

   Design as              different
                          perspective
   outcome                to traditional
                          strategy-
                          making


Design as
 process
Business needs
design now, more
than ever.
Business needs
           Why now?
design now, more
than ever.
Why design is
neede d now!
ANSWER #1:


the limits of efficiencies.
New sources of competitive advantage:

                     1960s & 1970s
  Making things cheaper
  Advantage from Cost Division of labor, MTS,
              mass production


                     1980s & 1990s
     Making things better
 Advantages from Quality and Speed Lean, JIT,
      exible specialization, automation


                             2000s
     Making better things
 Advantages from Aesthetics and Authenticity,
       Design, innovation, uniqueness




 Source: Stuart Rosenfeld, Regional Technology Strategies, Inc. (2006)
this view leads to ‘design’
as a differentiator:
this view leads to ‘design’
as a differentiator:




But ‘design’ in this sense is about
something you produce - an outcome.
this view leads to ‘design’
as a differentiator:

           What if the
           Strategy is
            flawed?
But ‘design’ in this sense is about
something you produce - an outcome.
Why design is
neede d now!
ANSWER #2:


increasingly complex
interdependent ecosystems
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html




Coopetition
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html




    Coopetition




3rd Party Developers
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html




    Coopetition




                                                                                     Government Regulations

3rd Party Developers
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html




                                                                   Global Market




    Coopetition




                                                                                     Government Regulations

3rd Party Developers
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html




                                                                   Global Market




    Coopetition

                       “The iPhone is a cool product.
                       But it can be revolutionary if
                       it becomes a cool ecosystem.”
                                                                                     Government Regulations

3rd Party Developers   Bruce Nussbaum, Business Week
increasingly complex
commoditiz   ation of goods & services
                        increasing interdependence
                          mergers & acquisitions
  environmental degradation
                   economic & political uncertainty
rate of technology change complex
           increasingly
                           new forms of com
                                            petition
          globalization
social change             a networked economy

       deregulation & privatization
            a value chain that can’t be controlled
The long term winners in complex
ecologies are those that fit with an
environment, compete within a
context of cooperation, and
create systems that become
increasingly complex while
remaining extremely flexible.
“
...we must understand that businesses are complex systems;
each is composed of myriad independent quot;partsquot; (employees,
information systems, teams, customers, partners, and so on)
that work together to meet business goals. What makes them
complex is their endless variety of parts (e.g., no two
employees are the same) and the sophisticated web of
relationships they make up.

This inherent complexity makes the behavior of the business
largely unpredictable, and generally uncontrollable by those
relatively few parts in leadership positions (just as ant colonies
or bee swarms are not controlled by their respective queens).

-Marc Rix, Chaotic IT




                  http://chaoticit.blogspot.com/2007/02/chaotic-innovation-give-mavericks-keys.html
organizations as
organisms
“Wait, are we talking about
business or biology?”
“
My countless conversations with boards of
directors and senior management have
revealed that these people are unfamiliar
with current thinking... thinking that has
been accepted by scientists and philosophers
for decades.


These very same breakthroughs in thinking
are responsible for generating the
technologies that are reshaping life for
everyone in the world and are being applied
in every science and by virtually every
master practitioner in all fields of human
endeavor. Politics, business, and education
have managed to remain far behind in their
integration of new thinking.
THE PROBLEM:


We are no longer in an
Industrial Era.

(yet we still manage things
as if we were)
EXERCISE            #2:

                                              e or
The next  time you are sitting in an executiv            untable
management mee      ting, or anywhere that people acco
                                                    d in a
for the perfor mance of a corporation are engage
                                                 id.
discussion,  listen very carefully to what is sa
                                                       a new
Listen to the idea s, and notice if they resonate with
                                                     of
way of thinking  - a way of thinking that is capable
                                                 rapidly
achieving a marketplace advantage in today’s
changing environment.
                                                  d notice
As you listen, set aside the current buzzwords an
                                               erent from
what remai  ns. Do you hear theory that is diff
                                     s ago?
what you might have heard decade
“Beat the competition!”
What kind of thinking would produce this
statement?

Is this a finite game with agreed on rules and
a clear winner? Are we at war with someone?
Are there clearly defined players? Are the
stakes defined? How will we know when
we’ve won? Is this really a worthwhile goal?
A complex ecosystem
requires business leaders to
adopt a different kind of
skillset and mindset.
Business needs
design now, more
than ever.
Business needs
design
M
 a Design now, more
  indset!
than ever.
This is not about having
‘design’ in your title (or not).

This is about a mindset and
skillset that can produce
better results.

A ‘design’ mindset.
“
The trouble is, when confronted with a mystery,
most linear business types resort to what they
know best: They crunch the numbers, analyze,
and ultimately redefine the problem “so it isn’t a
mystery anymore; it’s something they’ve done 12
times before,” Martin says. Most don’t avail
themselves of the designer’s tools — they don’t
think like designers — and so they are ill-prepared
for an economy where the winners are
determined by design.

               http://www.fastcompany.com/magazine/93/design.html
“So, what are the differences?”
planning vs thinking
planning vs thinking




 solving vs framing
planning vs thinking

decision attitude vs design attitude




         solving vs framing
planning vs thinking

decision attitude vs design attitude

    exhortations vs strategic intent

         solving vs framing
planning vs thinking

decision attitude vs design attitude

    exhortations vs strategic intent

         solving vs framing

         process vs play
planning vs thinking

decision attitude vs design attitude

    exhortations vs strategic intent

         solving vs framing

         process vs play

         analysis vs synthesis
planning vs thinking

         decision attitude vs design attitude

             exhortations vs strategic intent

      are stillsolving vs framing
These tant
impor
                  process vs play

                  analysis vs synthesis
planning vs thinking

         decision attitude vs design attitude

             exhortations vs strategic intent

      are stillsolving vs framing
These tant
impor
                                          Bu t these
                  process vs play
                                          ar  e vital
                  analysis vs synthesis
Design minded folks are really good
at: Observation. Framing problems.
Prototyping solutions. Working with
imperfect data. Focusing on people.
Caring about the details. Creating
narratives. Envisioning unseen
opportunities. Casting visions of the
future. Synthesizing information.
Systems thinking. Abductive thinking.
Increasing Complexity
       needs really good



   Problem Framing
           to enable



Revolutionary Solutions
Increasing Complexity
        needs really good



   Problem Framing
                   Design  thinking
         to enable    i s needed here!!

Revolutionary Solutions
EXERCISE   #1:



“What is it that
 designers do?”
“Everyone designs who devises
courses of action aimed at
changing existing situations
into preferred ones.”

-
Herbert Simon
What is possible?
Not what is likely, what’s
probable, or what’s predictable.

What is possible?
“The best way to predict the future
is to invent it.”

- Alan Kay
ME                MY PERSONAL SITE




     THE BEST WAY TO REACH ME
Highly
recommended
reading:




     www.andrewhargadon.com/Release/Hargadon_DMR_Leading_by_Design.pdf

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Business Needs Design Now

  • 1. EXERCISE #1: “What is it that designers do?”
  • 2. Business needs design now, more than ever.
  • 3. “ Design, in short, is becoming an ever more important engine of corporate profit: It's no longer enough simply to outperform the competition; to thrive in a world of ceaseless and rapid change, businesspeople have to outimagine the competition as well. They must begin to think – to become – more like designers. -Roger Martin, dean of the Rotman B-school http://www.fastcompany.com/magazine/109/open_design-tough-love.html
  • 4. “ Design, in short, is becoming an ever more important engine of corporate profit: It's no longer enough simply to outperform the competition; to thrive in a world of W hat kind ceaseless and rapid change, businesspeople of – to sign? have to outimagine the competition as well. They must begin to think debecome – more like designers. -Roger Martin, dean of the Rotman B-school http://www.fastcompany.com/magazine/109/open_design-tough-love.html
  • 6. Product Design Experience Design
  • 7. Product Design Experience Design Design of Business
  • 8. Digital Music, c.2001 Design of Business
  • 9. Hard Drive? Flash drive? MP3 CD? ‘Rip’ my CD? Digital Music, c.2001 MP2? MP AIFF? what? Wav? MP3? Design of Business
  • 10. Hard Drive? Flash drive? MP3 CD? ‘Rip’ my CD? “No Market MP2? Leader” MP AIFF? what? Wav? MP3? Design of Business
  • 11. Hard Drive? Flash drive? MP3 CD? ‘Rip’ my CD? MP2? MP AIFF? what? Wav? MP3? Design of Business
  • 12. Hard Drive? Flash drive? MP3 CD? ‘Rip’ my CD? “value of the MP2? network” Design.pdf MP AIFF? www.andrewhargadon.com/Relea se/Hargadon_DMR_Leading_by_ what? Wav? MP3? Design of Business
  • 13. lifestyle devices easy importing of music from CDs and other ‘sources’ Product Design (ahem!) transparent Experience digital audio Design formats Design of Business
  • 15. Design as outcome Design as process Jess McMullin www.bplusd.org
  • 16. Design as outcome Design as process Jess McMullin www.bplusd.org
  • 17. Design as outcome Design as process Jess McMullin www.bplusd.org
  • 19. skills same thinking tion) applica (d ifferent Design as outcome Design as process
  • 20. skills same thinking tion) applica (d ifferent ...and a Design as different perspective outcome to traditional strategy- making Design as process
  • 21. Business needs design now, more than ever.
  • 22. Business needs Why now? design now, more than ever.
  • 23. Why design is neede d now! ANSWER #1: the limits of efficiencies.
  • 24. New sources of competitive advantage: 1960s & 1970s Making things cheaper Advantage from Cost Division of labor, MTS, mass production 1980s & 1990s Making things better Advantages from Quality and Speed Lean, JIT, exible specialization, automation 2000s Making better things Advantages from Aesthetics and Authenticity, Design, innovation, uniqueness Source: Stuart Rosenfeld, Regional Technology Strategies, Inc. (2006)
  • 25. this view leads to ‘design’ as a differentiator:
  • 26. this view leads to ‘design’ as a differentiator: But ‘design’ in this sense is about something you produce - an outcome.
  • 27. this view leads to ‘design’ as a differentiator: What if the Strategy is flawed? But ‘design’ in this sense is about something you produce - an outcome.
  • 28. Why design is neede d now! ANSWER #2: increasingly complex interdependent ecosystems
  • 29.
  • 30.
  • 34. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html Coopetition Government Regulations 3rd Party Developers
  • 35. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html Global Market Coopetition Government Regulations 3rd Party Developers
  • 36. http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html Global Market Coopetition “The iPhone is a cool product. But it can be revolutionary if it becomes a cool ecosystem.” Government Regulations 3rd Party Developers Bruce Nussbaum, Business Week
  • 38. commoditiz ation of goods & services increasing interdependence mergers & acquisitions environmental degradation economic & political uncertainty rate of technology change complex increasingly new forms of com petition globalization social change a networked economy deregulation & privatization a value chain that can’t be controlled
  • 39. The long term winners in complex ecologies are those that fit with an environment, compete within a context of cooperation, and create systems that become increasingly complex while remaining extremely flexible.
  • 40. “ ...we must understand that businesses are complex systems; each is composed of myriad independent quot;partsquot; (employees, information systems, teams, customers, partners, and so on) that work together to meet business goals. What makes them complex is their endless variety of parts (e.g., no two employees are the same) and the sophisticated web of relationships they make up. This inherent complexity makes the behavior of the business largely unpredictable, and generally uncontrollable by those relatively few parts in leadership positions (just as ant colonies or bee swarms are not controlled by their respective queens). -Marc Rix, Chaotic IT http://chaoticit.blogspot.com/2007/02/chaotic-innovation-give-mavericks-keys.html
  • 42. “Wait, are we talking about business or biology?”
  • 43. “ My countless conversations with boards of directors and senior management have revealed that these people are unfamiliar with current thinking... thinking that has been accepted by scientists and philosophers for decades. These very same breakthroughs in thinking are responsible for generating the technologies that are reshaping life for everyone in the world and are being applied in every science and by virtually every master practitioner in all fields of human endeavor. Politics, business, and education have managed to remain far behind in their integration of new thinking.
  • 44. THE PROBLEM: We are no longer in an Industrial Era. (yet we still manage things as if we were)
  • 45. EXERCISE #2: e or The next time you are sitting in an executiv untable management mee ting, or anywhere that people acco d in a for the perfor mance of a corporation are engage id. discussion, listen very carefully to what is sa a new Listen to the idea s, and notice if they resonate with of way of thinking - a way of thinking that is capable rapidly achieving a marketplace advantage in today’s changing environment. d notice As you listen, set aside the current buzzwords an erent from what remai ns. Do you hear theory that is diff s ago? what you might have heard decade
  • 46. “Beat the competition!” What kind of thinking would produce this statement? Is this a finite game with agreed on rules and a clear winner? Are we at war with someone? Are there clearly defined players? Are the stakes defined? How will we know when we’ve won? Is this really a worthwhile goal?
  • 47. A complex ecosystem requires business leaders to adopt a different kind of skillset and mindset.
  • 48. Business needs design now, more than ever.
  • 49. Business needs design M a Design now, more indset! than ever.
  • 50. This is not about having ‘design’ in your title (or not). This is about a mindset and skillset that can produce better results. A ‘design’ mindset.
  • 51. “ The trouble is, when confronted with a mystery, most linear business types resort to what they know best: They crunch the numbers, analyze, and ultimately redefine the problem “so it isn’t a mystery anymore; it’s something they’ve done 12 times before,” Martin says. Most don’t avail themselves of the designer’s tools — they don’t think like designers — and so they are ill-prepared for an economy where the winners are determined by design. http://www.fastcompany.com/magazine/93/design.html
  • 52. “So, what are the differences?”
  • 53.
  • 55. planning vs thinking solving vs framing
  • 56. planning vs thinking decision attitude vs design attitude solving vs framing
  • 57. planning vs thinking decision attitude vs design attitude exhortations vs strategic intent solving vs framing
  • 58. planning vs thinking decision attitude vs design attitude exhortations vs strategic intent solving vs framing process vs play
  • 59. planning vs thinking decision attitude vs design attitude exhortations vs strategic intent solving vs framing process vs play analysis vs synthesis
  • 60. planning vs thinking decision attitude vs design attitude exhortations vs strategic intent are stillsolving vs framing These tant impor process vs play analysis vs synthesis
  • 61. planning vs thinking decision attitude vs design attitude exhortations vs strategic intent are stillsolving vs framing These tant impor Bu t these process vs play ar e vital analysis vs synthesis
  • 62. Design minded folks are really good at: Observation. Framing problems. Prototyping solutions. Working with imperfect data. Focusing on people. Caring about the details. Creating narratives. Envisioning unseen opportunities. Casting visions of the future. Synthesizing information. Systems thinking. Abductive thinking.
  • 63. Increasing Complexity needs really good Problem Framing to enable Revolutionary Solutions
  • 64. Increasing Complexity needs really good Problem Framing Design thinking to enable i s needed here!! Revolutionary Solutions
  • 65. EXERCISE #1: “What is it that designers do?”
  • 66. “Everyone designs who devises courses of action aimed at changing existing situations into preferred ones.” - Herbert Simon
  • 67. What is possible? Not what is likely, what’s probable, or what’s predictable. What is possible?
  • 68. “The best way to predict the future is to invent it.” - Alan Kay
  • 69. ME MY PERSONAL SITE THE BEST WAY TO REACH ME
  • 70. Highly recommended reading: www.andrewhargadon.com/Release/Hargadon_DMR_Leading_by_Design.pdf