This document discusses design thinking as a better path to innovation. It suggests that true organic growth comes from innovation, not other strategies like cost cutting or mergers. Innovation can take the form of better products, processes, organizations, or making the world better. However, most organizations struggle with innovation because they lack the right context, culture, courage, or process. The document advocates for design-led innovation through user research, prototyping, and iteration. It also emphasizes that for innovation to be sustainable, it needs to be meaningful by addressing what matters most to customers, teams and competitors.

1. Design Thinking: A Better Path to
Innovation
InnoFuture, Melbourne, Australia
2008
nathan.com/thoughts/InnoFuture.pdf

2. Why innovate?

3. Why innovate?

4. Why innovate?
Paths to Growth:
• Increase operational efficiencies
• Sell-off assets
• Mergers and acquisitions
• Initial Public Offerings
•“Rebranding”
• Innovation

5. Why innovate?
Paths to Organic, Lasting Growth:
• Increase operational efficiencies
• Sell-off assets
• Mergers and acquisitions
• Initial Public Offerings
•“Rebranding”
• Innovation

6. What is innovation?

7. What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations

8. What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations

9. What is innovation?
Forms of innovation:
• Better offerings and experiences
• Better processes
• Better organizations
• A better world

10. Why can’t most organizations
innovated effectively?

11. What’s the right context for
innovation?

12. What’s the right context for
innovation?
Marketing = inhale
Sales, PR, Advertising, etc. = exhale

13. What’s the right context for
innovation?
Qualitative + Quantitative

14. What’s the right culture for
innovation?

15. What’s the right culture for
innovation?
Structured Innovators (18%): Dynamic Innovators (39%):
• Formal process • Strategy guides process
• Led from the middle • Led from top
• Low collaboration • Cross functional teams
• Analytic evaluations • Collaborative
• Iterative • Creative environment
• Risks minimized • Rational inspiration
• Risk-taking is accepted
Creative Innovators (26%):
• “Big Ideas” inspire Ad Hoc Innovators (10%):
• Led from the top • Accidental innovation
• Often haphazard process • Innovation not valued
• Focus on creativity • Creativity not valued
• Risk-taking is accepted • Haphazard process
Innovation Outsourcers (8%):
• Relies on consultants
• Acquires innovation
Cheskin, 2005 • Focus on marketing/PR

16. Why aren’t organizations
creative enough?

17. Why aren’t organizations
courageous enough?

18. Why should innovation be
sustainable?

19. Why should innovation be
sustainable?

20. Why should innovation be
meaningful?

22. Function (Performance):
Does this do what I need?

23. Price (Value):
Does this do what I need at a
price that’s worth it?

24. Emotions (Lifestyle):
Does this make me
feel good?

25. Status/Identity (Values):
Is this me?

26. Meaning (Reality):
Does this fit into my reality?

27. Core Meanings:
Accomplishment Harmony
Beauty Justice
Creation Oneness
Community Redemption
Duty Security
Enlightenment Truth
Freedom Validation
Wonder

28. Meaning:

29. Experiences:
Duration
Initiation
Immersion Intensity
Conclusion Reflex
Triggers Continuation Habit
Senses: Engagement
Sight
Sound
Smell
Taste
Touch
Cognitive: Breadth
Concepts Product
Symbols Service
Brand
Name(s)
Channel/Environment
(Space)
Promotion
Price
Interaction Significance
Passive Meaning
Active Status/Identity
Interactive Emotion/Lifestyle
Price
Function

30. What’s the “right” process
for innovation?

31. What’s the “right” process
for innovation?
design-led innovation:
user-centered research, prototyping,
critique, iteration, embracing constraints

32. What’s the “right” process
for innovation?

33. What’s the “right” process
for innovation?

34. What’s the “right” process
for innovation?

35. What’s the “right” process
for innovation?

36. What’s meaningful innovation?
Corporate
Meaning The Focus!
Priorities
Team Customer
Meaning Meaning
Priorities Priorities
Competitors’
Meaning
Priorities