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'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	
  
The	
  Essence	
  of	
  ‘Design	
  Thinking’	
  
2	
  
Today’s	
  Case	
  Study	
  
3	
  
Along	
  with	
  two	
  current	
  examples	
  from	
  Ukraine…	
  
 
Importance	
  of	
  	
  
Product	
  Design	
  	
  
for	
  	
  
Building	
  Successful	
  
Companies…	
  
	
  
 
	
  
…	
  and	
  	
  
Reducing	
  Failures	
  	
  
Thru	
  	
  
‘Premature	
  Scaling’	
  	
  
	
  
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	
  
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	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
7	
  
Using
‘Design Thinking’
To Increase
New Product Success Rates
at Ukrainian Technology
Companies
ABOUT
THE SPEAKER
DR. BURTON LEE PHD MBA
STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES
BURTON.LEE@INNOVARIUM.NET
WWW.STANFORDEUROPRENEURS.ORG
@EUROPRENEURS
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	
  
h`p://www.europeanentrepreneursatstanford.com	
  |	
  h`p://me421.stanford.edu	
  
Oct	
  16	
  2015	
   Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  Ventures	
  2015	
  
February 10 @ Stanford Engineering
Jeff Lynn, Seedrs (UK) & Matija Kopic, Farmeron (HR)
12	
  
January	
  27	
  @	
  Stanford	
  Engineering	
  
Vassil	
  Terziev,	
  Telerik	
  (BG)	
  &	
  Japec	
  Jakopin	
  (Slovenia)	
  
13	
  
January	
  13	
  @	
  Stanford	
  Engineering	
  
Uwe	
  Horstmann,	
  Project-­‐A	
  Ventures	
  (DE)	
  &	
  Signe	
  Viimsalu,	
  Estonian	
  	
  Business	
  Angels	
  (EE)	
  
14	
  
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	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
16	
  
Mentoring	
  CroaDan	
  Startups	
  at	
  Geek	
  Business	
  
Camp,	
  Brown	
  Forum,	
  Osijek,	
  April	
  2015	
   17	
  
Using
‘Design Thinking’
An Example of How One Silicon
Valley Company Re-imagined
the Shopping Experience
and the Shopping Cart
A	
  ‘Lean	
  Startup’	
  Approach	
  to	
  Early	
  Stage	
  Entrepreneurship	
  Educa1on	
  
Product-­‐Market	
  Fit	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
19	
  
20	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
21	
  
Re-­‐designing	
  the	
  21st	
  
Century	
  Shopping	
  Cart	
  
One	
  Example	
  
22	
  
IDEO	
  Shopping	
  Cart	
  Project	
  
23	
  
Observe	
  
Real	
  Customers	
  &	
  Customer	
  Behavior	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
24	
  
25	
  
Record	
  
Real	
  Customers	
  
&	
  Customer	
  
Behavior	
  
Oct	
  13	
  2015	
   26	
  
Sketching	
  –	
  Where	
  Product	
  IdeaDon	
  &	
  
SoI	
  Prototyping	
  OIen	
  Starts	
  
How	
  Would	
  You	
  
Redesign	
  The	
  
Shopping	
  Cart	
  
for	
  Modern	
  
Shoppers	
  in	
  
Ukraine?	
  
27	
  
Direct	
  Engagement	
  with	
  Real	
  Users	
  
28	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
29	
  
‘SoI	
  Prototyping’	
  
Soj	
  Prototyping	
  Materials	
  &	
  Tools	
  
•  Paper	
  
•  Cardboard	
  
•  Plas1c	
  
•  Wooden	
  s1cks	
  
•  Post-­‐it	
  Notes	
  
•  Cloth	
  
•  Sketches	
  
•  Scissors	
  
•  Tape	
  
•  Glue	
  
•  Staplers	
  
•  Markers	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
30	
  
31	
  
32	
  
33	
  
34	
  
35	
  
36	
  
One	
  Design	
  Team’s	
  
SoluDon	
  for	
  21st	
  
Century	
  Shoppers	
  
Actual	
  Product	
  Design	
  Process	
  
(generally	
  not	
  linear	
  for	
  new	
  products	
  and	
  untested	
  markets)	
  
Search	
  for	
  
Product-­‐Market	
  Fit	
  
37	
  
Key	
  DT	
  Methodologies	
  
•  Idea1on	
  
•  Needs	
  Finding	
  
•  Ques1on	
  Asking	
  |	
  Listening	
  |	
  Watching	
  
•  Assump1ons	
  Challenging	
  
•  Storytelling	
  
•  Soj	
  Prototyping	
  
•  Itera1on	
  
•  User	
  Context	
  Seeking	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
38	
  
‘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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
39	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
40	
  
 
Two	
  Design	
  Challenges	
  
from	
  Ukraine	
  Today	
  
	
  
Two	
  Teams	
  from	
  
Ukraine	
  
	
  
Design	
  Challenges	
  from	
  Ukraine	
  
•  Personal	
  security	
  system	
  for	
  ci1es	
  
•  Wounded	
  soldier	
  ba`lefield	
  survival	
  
and	
  care	
  system	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
42	
  
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	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
44	
  
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	
  
The	
  Two	
  Ukrainian	
  Design	
  
Teams	
  Go	
  Off	
  for	
  20	
  
Minutes	
  to	
  Work	
  on	
  Their	
  
First	
  ‘SoS	
  Prototype’	
  
Solu4ons	
  …	
  
DisrupDve	
  InnovaDon	
  
	
  
Current	
  Examples	
  in	
  
Business	
  &	
  Technology	
  
from	
  California	
  
Oct	
  13	
  2015	
   Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  Ventures	
  2015	
  
Source:	
  Steve	
  Blank,	
  2012	
  
48	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  Ventures	
  2015	
   49	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
50	
  
51	
  
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	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
53	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
54	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
55	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
57	
  
SpaceX	
  ‘Grasshopper’	
  Reusable	
  First	
  Stage	
  Test	
  Vehicle	
  
What	
  ‘Space’	
  is	
  Airbnb	
  In	
  ??	
  
The	
  Customer	
  Experience	
  Perspec4ve	
  62	
  
63	
  
64	
  
65	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
66	
  
Oct	
  13	
  2015	
  
Copyright	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
68	
  
69	
  
70	
  
71	
  
PresentaDons	
  from	
  
The	
  Two	
  Ukrainian	
  
Design	
  Teams	
  !!	
  
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	
  
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	
  Burton	
  H.	
  Lee	
  &	
  Innovarium	
  
Ventures	
  2015	
  
74	
  
 
	
  
Wrap-­‐Up	
  
and	
  Summary	
  
	
  
 
	
  
Product	
  Design	
  
Is	
  *Not*	
  the	
  Same	
  as	
  
‘Engineering	
  Design’	
  
	
  
 
Product	
  Design	
  
Excellence	
  &	
  Skills	
  
Are	
  Essen4al	
  to	
  
Growing	
  Successful	
  
Companies	
  in	
  Ukraine	
  	
  
	
  
The	
  Essence	
  of	
  ‘Design	
  Thinking’	
  
Join Our Online Community
@europreneurs
Speaker Presentation Slides
www.slideshare.net/burtonlee1
Speaker Videos – YouTube Channel
‘StanfordEuropreneurs’
‘European Innovation @Stanford’
www.StanfordEuropreneurs.org
me421.stanford.edu 79	
  
THANK	
  YOU	
  
Dr.	
  Burton	
  Lee	
  PhD	
  MBA	
  
Stanford	
  School	
  of	
  Engineering	
  
Burton.Lee@Innovarium.net	
  
	
  
WWW.STANFORDEUROPRENEURS.ORG	
  
	
  
@EUROPRENEURS	
  
 
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	
  

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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  
  • 2. The  Essence  of  ‘Design  Thinking’   2  
  • 3. Today’s  Case  Study   3   Along  with  two  current  examples  from  Ukraine…  
  • 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   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   7  
  • 8. Using ‘Design Thinking’ To Increase New Product Success Rates at Ukrainian Technology Companies
  • 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  
  • 11. h`p://www.europeanentrepreneursatstanford.com  |  h`p://me421.stanford.edu   Oct  16  2015   Copyright  Burton  H.  Lee  &  Innovarium  Ventures  2015  
  • 12. February 10 @ Stanford Engineering Jeff Lynn, Seedrs (UK) & Matija Kopic, Farmeron (HR) 12  
  • 13. January  27  @  Stanford  Engineering   Vassil  Terziev,  Telerik  (BG)  &  Japec  Jakopin  (Slovenia)   13  
  • 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  Burton  H.  Lee  &  Innovarium   Ventures  2015   16  
  • 17. Mentoring  CroaDan  Startups  at  Geek  Business   Camp,  Brown  Forum,  Osijek,  April  2015   17  
  • 18. Using ‘Design Thinking’ An Example of How One Silicon Valley Company Re-imagined the Shopping Experience and the Shopping Cart
  • 19. A  ‘Lean  Startup’  Approach  to  Early  Stage  Entrepreneurship  Educa1on   Product-­‐Market  Fit   Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   19  
  • 20. 20  
  • 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  Burton  H.  Lee  &  Innovarium   Ventures  2015   21  
  • 22. Re-­‐designing  the  21st   Century  Shopping  Cart   One  Example   22  
  • 23. IDEO  Shopping  Cart  Project   23  
  • 24. Observe   Real  Customers  &  Customer  Behavior   Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   24  
  • 25. 25   Record   Real  Customers   &  Customer   Behavior  
  • 26. Oct  13  2015   26   Sketching  –  Where  Product  IdeaDon  &   SoI  Prototyping  OIen  Starts  
  • 27. How  Would  You   Redesign  The   Shopping  Cart   for  Modern   Shoppers  in   Ukraine?   27  
  • 28. Direct  Engagement  with  Real  Users   28  
  • 29. Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   29   ‘SoI  Prototyping’  
  • 30. Soj  Prototyping  Materials  &  Tools   •  Paper   •  Cardboard   •  Plas1c   •  Wooden  s1cks   •  Post-­‐it  Notes   •  Cloth   •  Sketches   •  Scissors   •  Tape   •  Glue   •  Staplers   •  Markers   Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   30  
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  • 36. 36   One  Design  Team’s   SoluDon  for  21st   Century  Shoppers  
  • 37. Actual  Product  Design  Process   (generally  not  linear  for  new  products  and  untested  markets)   Search  for   Product-­‐Market  Fit   37  
  • 38. Key  DT  Methodologies   •  Idea1on   •  Needs  Finding   •  Ques1on  Asking  |  Listening  |  Watching   •  Assump1ons  Challenging   •  Storytelling   •  Soj  Prototyping   •  Itera1on   •  User  Context  Seeking   Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   38  
  • 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  Burton  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  Burton  H.  Lee  &  Innovarium   Ventures  2015   40  
  • 41.   Two  Design  Challenges   from  Ukraine  Today     Two  Teams  from   Ukraine    
  • 42. Design  Challenges  from  Ukraine   •  Personal  security  system  for  ci1es   •  Wounded  soldier  ba`lefield  survival   and  care  system   Oct  13  2015   Copyright  Burton  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  Burton  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  Burton  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  Burton  H.  Lee  &  Innovarium   Ventures  2015   50  
  • 51. 51  
  • 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  Burton  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  Burton  H.  Lee  &  Innovarium   Ventures  2015   55  
  • 56.
  • 57. Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   57  
  • 58. SpaceX  ‘Grasshopper’  Reusable  First  Stage  Test  Vehicle  
  • 59.
  • 60.
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  • 62. What  ‘Space’  is  Airbnb  In  ??   The  Customer  Experience  Perspec4ve  62  
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  • 66. Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   66  
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  • 68. Oct  13  2015   Copyright  Burton  H.  Lee  &  Innovarium   Ventures  2015   68  
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  • 72. PresentaDons  from   The  Two  Ukrainian   Design  Teams  !!  
  • 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  Burton  H.  Lee  &  Innovarium   Ventures  2015   74  
  • 75.     Wrap-­‐Up   and  Summary    
  • 76.     Product  Design   Is  *Not*  the  Same  as   ‘Engineering  Design’    
  • 77.   Product  Design   Excellence  &  Skills   Are  Essen4al  to   Growing  Successful   Companies  in  Ukraine      
  • 78. The  Essence  of  ‘Design  Thinking’  
  • 79. Join Our Online Community @europreneurs Speaker Presentation Slides www.slideshare.net/burtonlee1 Speaker Videos – YouTube Channel ‘StanfordEuropreneurs’ ‘European Innovation @Stanford’ www.StanfordEuropreneurs.org me421.stanford.edu 79  
  • 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