This document discusses the use of design thinking methods for disruptive innovation. It provides an example of how one Silicon Valley company redesigned the shopping cart experience. The key elements of design thinking discussed are needs finding through direct user observation and interviews, ideation through storytelling and prototyping, and iteration through testing prototypes with users. The document describes how the company observed real shoppers, created soft prototypes, and engaged directly with users to develop new shopping cart designs.
Using 'Design Thinking' Methods to Boost Innovation at Ukrainian Tech Firms
1. 'Design
Thinking'
Methods
for
Disrup4ve
Innova4on
Fedoriv
Hub
|
Bionic
University
Dr.
Burton
Lee
PhD
MBA
European
Entrepreneurship
&
Innova1on
Stanford
Engineering
School,
Silicon
Valley,
CA
www.StanfordEuropreneurs.org
||
@Europreneurs
Kyiv,
Ukraine
Oct
13
2015
4.
Importance
of
Product
Design
for
Building
Successful
Companies…
5.
…
and
Reducing
Failures
Thru
‘Premature
Scaling’
6. ObservaDons
from
Ukraine
&
Europe
• Visits
to
leading
UA
ICT
companies
(Prom.UA,
playtech),
KPI
• 7
years
working
in
Europe
with
tech
startups,
corpora1ons,
investors,
universi1es,
engineering
and
business
professors
&
schools,
governments
and
the
European
Commission
– Poland,
Estonia,
Latvia,
Lithuania,
Slovakia,
Croa1a,
Russia,
Romania,
Bulgaria,
Czech,
Germany,
UK,
Finland,
Norway,
Sweden,
Denmark
– Collabora1ons
with
European
universi1es
in
Ireland,
Finland,
France,
Germany
Oct
13
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
6
7. European
Startup
Teams
OIen
Miss
These
Key
AcDviDes
• Develop
too
few
product/service
concepts
– Have
just
1-‐2
ideas
• Too
few
interac1ons
with
real
users/customers
– 2-‐3
discussions
vs
mee1ng/observing
00’s
– Don’t
make
serious
effort
to
go
into
market,
understand
customers
and
the
market
– Develop
li`le
sense
of
market
segments:
high,
middle,
low
• Build
insufficient
prototypes
– 1
or
2
vs
10
vs
500
• Test
prototypes
with
too
few
real
users
• Start
with
the
Wrong
Ques1ons
About
User
Needs
Oct
13
2015
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H.
Lee
&
Innovarium
Ventures
2015
7
9. ABOUT
THE SPEAKER
DR. BURTON LEE PHD MBA
STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES
BURTON.LEE@INNOVARIUM.NET
WWW.STANFORDEUROPRENEURS.ORG
@EUROPRENEURS
10. Map
of
PresenDng
Speaker
NaDonaliDes
European
Entrepreneurship
&
InnovaDon
@
Stanford
Engineering
(ME421)
Winter
2015
–
Year
Seven
Enterprise
Estonia
Silicon
Valley
Ghent,
Flanders
Region
Belgium
iMinds
ICT
Research
InsDtute
14. January
13
@
Stanford
Engineering
Uwe
Horstmann,
Project-‐A
Ventures
(DE)
&
Signe
Viimsalu,
Estonian
Business
Angels
(EE)
14
15. Topics Covered
Oct
13
2015
Equity
Crowdfunding
European Entry Strategies
for Valley Startups
East v West Europe
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
15
16. The Story of European Entrepreneurship in Europe
Europe vs Silicon Valley
Oct
13
2015
Entrepreneurship
and
InnovaDon
in
Europe
Today
Europe
vs
Silicon
Valley
Europeans
in
Silicon
Valley
Arts,
Culture,
Design,
Language
&
Tradi1ons
History
&
Poli1cs
Law
&
Policy
Ins1tu1ons
&
Personali1es
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
16
19. A
‘Lean
Startup’
Approach
to
Early
Stage
Entrepreneurship
Educa1on
Product-‐Market
Fit
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
19
21. Elements
of
‘Design
Thinking’
• Needs
Finding
– Direct
Observa1on
of
Users
and
User
Behaviors
– User
Surveys
and
Ques1onnaires
– Interviews
– Shadowing
– Understanding
&
Iden1fying
Proper
Context
for
New
Products/Services
• IdeaDon
– Improvisa1on
– Storytelling
– Storyboarding
– Use
Case
Analysis
• Prototyping
– ‘Soj
Prototyping’
of
products/services
• IteraDon
– Pivo1ng
• QuesDon-‐Asking
– Asking
the
‘Right
Ques1on’
|
Knowing
‘Wrong
Ques1ons’
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
21
39. ‘Storytelling’
is
An
EssenDal
Part
of
Design
Thinking
• Role
playing
(ac1ng)
• Storyboarding
• Ar1fact
crea1on
• Use
case
analysis
• Improvisa1on
(ac1ng)
• PPT
presenta1on
• Architecture
&
ecosystem
diagrams
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
39
40. What
is
Different
About
‘Design
Thinking’?
• Avoids
‘Hard
Engineering’
ac1vi1es,
expenditures
and
commitments
for
as
long
as
Possible
• Combines
many
‘hard’
&
‘soj’
disciplines:
– Sociology
Design
– Psychology
Art
&
Drawing
– Anthropology
– Human
Factors
– HandiCrajs
&
Making
Things
– Business
– Engineering
&
Architecture
• Searches
for
disrup've
and
new
crea1ve
approaches
to
solving
societal
problems
and
marketplace
gaps
• Focuses
on
finding
and
‘asking
the
right
ques1ons’
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
40
42. Design
Challenges
from
Ukraine
• Personal
security
system
for
ci1es
• Wounded
soldier
ba`lefield
survival
and
care
system
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
42
43. Personal
Security
System
for
CiDes
• What
are
personal
dangers
&
risks
faced
by
ordinary
ci1zens
in
Ukraine’s
ci1es?
• How
would
you
get
their
input?
• How
many
people
would
you
talk
to?
• What
does
one
of
your
soj
prototypes
look
like?
• What
would
it
do?
How
would
it
use
technology
to
make
ci1zens
safer?
Oct
13
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
43
44. Wounded
Soldier
Bahlefield
Survival
and
Care
System
• What
are
personal
dangers
&
risks
faced
by
ordinary
soldiers
in
Ukraine’s
war?
• What
are
top
5
injuries
faced
by
soldiers?
• How
would
you
get
their
input?
• How
many
people
would
you
talk
to?
• What
does
one
of
your
soj
prototypes
look
like?
• What
would
it
do?
How
would
it
use
technology
to
make
soldiers
safer/receive
faster
or
be`er
medical
treatment?
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
44
45. What
Each
Team
Needs
to
Figure
Out
• What
is
the
problem?
• Who
is
the
end
user?
• How
does
your
system
help
to
solve
the
problem?
• How
did
you
arrive
at
your
tenta1ve
solu1on?
• How
would
you
test
this
further
in
the
marketplace?
Oct
13
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
45
46. The
Two
Ukrainian
Design
Teams
Go
Off
for
20
Minutes
to
Work
on
Their
First
‘SoS
Prototype’
Solu4ons
…
47. DisrupDve
InnovaDon
Current
Examples
in
Business
&
Technology
from
California
48. Oct
13
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Source:
Steve
Blank,
2012
48
49. What
We
Do
in
Silicon
Valley
• We
build
and
grow
(“scale”)
companies
to
a
global
level
faster
–
and
more
efficiently
–
than
anywhere
else
in
the
world
• We
create
more
new
jobs
and
industries
–
faster
–
than
anywhere
globally
• We
look
for
and
reward
disrupDve
ideas,
technologies,
teams
and
intellectual
property
that
can
be
scaled
globally
• We
do
world
class
research
and
technology
development
• We
design,
build
and
manufacture
great
technology
products
and
services
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
49
50. CharacterisDcs
of
‘DisrupDve
InnovaDon’
• Exponen1al
‘fast’
adop1on
(months
or
years)
• Slow
adop1on
(decades)
• Consumer
vs
enterprise
• Sojware
vs
hardware
• Viral
growth
(network
effects,
typically
consumer)
• DI
is
coming
more
ojen,
over
broader
sectors
of
private
and
public
life,
led
by
IT
advances
• Capital
requirements
can
vary
greatly
• Social
upheavals
(some1mes)
vs
‘Crea1ve
Destruc1on’
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
50
52. Android
&
iPhone
“Disrup've
Innova'on”
via
New
Business
Models
+
Advanced
Product
Design
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
Smart
Phone
“Company-‐Busters”
New
Products
and
Services
for
Global
Markets
Oct
13
2015
52
53. Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
53
54. Oct
13
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
54
55. Smart
Phone
Growth
• Technological
Innova1on
– Miniaturiza1on,
new
interface
technologies
• Design
Innova1on
– Deep
customer
‘touch’
&
engagement
• Plarorm
Innova1on
– AppStore,
iCloud
• Business
Model
Innova1on
– Unit
sales
+
AppStore
+
iCloud
+++
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
55
56.
57. Oct
13
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
57
73. Key
Points
to
Discuss
• What
is
the
problem?
• Who
is
the
end
user?
• How
does
your
system
help
to
solve
the
problem?
• How
did
you
arrive
at
your
tenta1ve
solu1on?
• How
would
you
test
this
further
in
the
marketplace?
Oct
13
2015
Copyright
Burton
H.
Lee
&
Innovarium
Ventures
2015
73
74. Cau4onary
Note
• Due
to
1me
limita1ons,
the
two
Ukrainian
teams
and
par1cipants
did
not
experience
or
demonstrate
a
full
Design
Thinking
process.
• We
presented
this
evening
a
short
abbreviated
example
of
what
one
cycle
of
a
larger
Design
Thinking
exercise
might
look
like,
using
two
problem
areas
that
are
understood
and
of
interest
to
many
Ukrainians.
• To
be
more
fully
realis1c,
both
teams
would
have
needed
to
spend
substan1al
1me
directly
with
their
target
users,
and
to
iterate
through
numerous
‘soj
prototypes’
and
user
engagement
interac1ons.
Oct
13
2015
Copyright
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H.
Lee
&
Innovarium
Ventures
2015
74
80. THANK
YOU
Dr.
Burton
Lee
PhD
MBA
Stanford
School
of
Engineering
Burton.Lee@Innovarium.net
WWW.STANFORDEUROPRENEURS.ORG
@EUROPRENEURS
81.
Working
in
Silicon
Valley,
Europe,
LaDn
America
and
Washington
DC
• Senior
financial,
technical
and
strategy
advisory
services
for
global
technology
innova1on
organiza1ons
• Professional
Services
– Technology
startup
and
growth
companies
• Interim
CXO
and
Advisory
Board
roles
• Expert
guidance
&
decision-‐making
at
the
interface
between
market/customers,
technology
and
finance
• Business
development
–
industrial
and
government
• Business
plan
prepara1on/research/review;
Government
Grant
proposal
prepara1on/review
• Coaching
and
mentoring
of
CEOs
and
other
CXO-‐level
managers
• Assistance
with
government
regulatory
and
policy
agencies
– Angel,
venture
capital
and
private
equity
Investors
• Fund
strategy,
team
selec1on
and
market
posi1oning
• Due
diligence:
technical,
financial,
strategy
and
business
models
– Public
and
non-‐profit
R&D
laboratories
• Technology
transfer
&
partnerships;
venturing
and
spin-‐out
of
companies;
strategy
and
business
development;
grant
applica1ons
– Research
universi1es
• Innova1on-‐related
models,
policies
and
prac1ces
• Technology
transfer
and
licensing;
industry
partnerships
and
rela1ons;
development
and
strategy;
grant
applica1ons
– Na1onal
and
regional
government
agencies
• Innova1on
policy
formula1on,
analysis
and
review;
cluster
development
strategy;
economic
impact
studies
• Science
&
technology
policy
formula1on,
analysis
&
review:
space,
avia1on,
nanotechnology,
sojware/AI/robo1cs,
manufacturing
• Selected
recent
clients
– US/European
technology
startup
companies
–
alterna1ve
energy,
robo1cs/AI,
sojware,
Internet,
nanotech
– Venture
and
private
equity
funds
–
aerospace,
nanotechnology,
ICT,
compu1ng,
advanced
materials,
clean
tech
– Office
of
the
Prime
Minister,
Ireland;
European
Commission;
Na1onal
Science
Founda1on;
NASA,
Na1onal
Academies
• Dr.
Burton
Lee
PhD
MBA,
Managing
Director
– Contact:
Burton.Lee@innovarium.net
Based
in
Palo
Alto,
CA
near
Stanford
University
– Bio/References:
LinkedIn
Profile
– Lecturer,
European
Entrepreneurship
&
Innova1on,
Stanford
School
of
Engineering
81