Understand what design thinking is. Learn how to use design thinking in SAP, Oracle EBS projects to understand what your customers/users really need. Seize the business benefits and innovate.

1. Digital strategy for the algorithm economy
IT Executive’s Guide to
Design Thinking

2. • Today’s marketplace calls for every company to be a high-tech company.
• Presenting complex information on a small screen emphasized the importance of
design.
• Companies such as Airbnb, Uber and Google are leading solely based on design.
• Design & User Experience play a deeper role in successful Integration of technology
into business.
• IT teams have numerous opportunities to improve business performance with
design.
• Understanding the Value of Design, laying out a business case & integrating design
into business are key challenges faced by IT teams across organizations.
• Now it’s turn for IT Teams to embrace Design Thinking in products & services to out
beat competition.
Executive Overview

3. “No one likes rotten milk.
It has to be fresh”
Tim Cook, CEO of Apple Inc.

4. What is Design Thinking?

5. Design Thinking is about achieving
a deeper understanding of your
users’ functional and emotional
needs

6. • Design thinking is a paradigm shift in solving problems and innovating
• Design is not just about colors, look & feel
• Building deep empathy with your end user is the foundation of design thinking
• For IT Teams, design is about achieving the full potential of software applications.
Design is taking over boardrooms.
Source: McKinsey Digital Labs
A New Kind of Leadership
Design Thinking is being used to
create strategic visions,
new markets and
new customers
behavior

7. “Design thinking helps you seek
a balance between:
intuition and analytics,
exploration and exploitation,
reliability and validity,
and art and science”
Roger Martin

8. Business Benefits

9. Some of the Business Benefits
• Simplify complex problems
• Acute problem identification
• Foster innovation
• Enhance profits & shareholder value
• Command brand loyalty
• Build high quality software and
eliminate technical debt
• Streamline business processes
• End to end integration
• Gain competitive advantage
• Reduce costs
• Deliver amazing customer experiences

10. How does Design
Thinking work?

11. Iterative (non-linear), collaborative
(cross functional) process and consists
of five main phases.

12. Source: Stanford D.School [7]
Imagine the “ideal”
Understand the problem space Create the solution
Problem Definition
Project Plan
Data Insights
Design Principles
Ideas
Concepts
Low-Fi / High-Fi
Prototypes
Blueprint
360°
Research
Scoping Synthesis Ideation Prototyping Validation Implementation
Creating
Choices
Making
Choices
Creating
Choices
Making
Choices

13. • Empathy for the end user is at the heart of design thinking
• Empowers the designer to understand the people by observation.
• By observing, learn insights about the user’s emotional and contextual needs.
• These surprising insights will be the difference between a solution people would love
to use and a solution people avoid.
Design Phase - Empathy

14. • Identify the actual business problem.
• Avoid the trap of solving a wrong problem with a wrong solution by synthesizing the
findings from the empathy phase.
• Important because it explicitly helps to state the business challenge that you are
trying to provide a solution for.
• Assuming the problem is the root cause of failure.
Design Phase - Define

15. • Produce as many ideas as possible to solve the business problem identified during
the define phase.
• This stage involves buy vs build decision, platform to build upon decision, and SWOT
analysis of existing set up.
• Every idea is worthy to consider and it’s too early to dismiss any idea.
• Power users or hacker users who find workaround apps and tools to solve their
business problem are the best bet to produce ideas.
Design Phase - Ideate

16. • Prototyping is converting ideas and thoughts from an abstract form to a concrete
form.
• Make the prototype interactive, elicit feedback, and quickly adapt the feedback.
• Learn how close the prototype is to the real solution.
• A major benefit of prototyping and taking feedback is to develop successful
products with profound empathy for the users.
Design Phase - Prototype
“A Picture is worth 1000 words. A Protoype is worth a thousand ideas”

17. • Test the proposed solutions, continue to gain feedback from users and refine them.
• Testing does not need to be the final phase.
• Design thinking is a non-linear methodology and you can go back to any relevant
phase to refine the solution.
Design Phase - Test
“Prototype as if you know are right, but test as if you know you are wrong”
D.School Design Thinking Philosophy

18. Business benefits of
Design Thinking

19. Google and Apple have
incorporated UX design as a center
piece of their successes.
As per IEEE, up to 15% of IT projects
are abandoned and developers
spend approximately 50% of their
time on rework.
Innovative Ideas = More problem
finding / Less problem solving

20. • Simplicity is the need of the hour. Great design reduces the friction between the
user and the application.
• Straightforward and aesthetically pleasing products are compelling to use and more
relevant in the mobile first world.
• Unfortunately some enterprise software developers do not even know who the end
user is.
1. Simplification

21. • Design hinking mandates you to determine whether the problem itself exists to start
with and whether it is the right problem to solve.
• An in-depth understanding of the problem itself enables you to prioritize the
challenges of the business.
• The design thinking process does not assume the problem as given.
2. Acute Problem Identification

22. • One of the biggest benefits of design thinking is fostering an innovation culture in
your organization.
• In order to innovate, it is necessary to learn what your people’s needs are.
Cross-disciplinary teams tackle the problem from different perspectives leading to an
innovative solution.
• This results in accumulation of ideas and creating an open culture to express ideas
with out hesitation.
3. Foster Innovation
Innovation does not happen in isolation.
Desirability
People
Viability
Business
Feasibility
Technology
Innovation
Opportunity
What we are
traditionally been
good at

23. Design oriented products and services not only create the amazing experiences that
customers expect, but they also generate higher profits.
4. Higher Profits & Shareholder Value
Design Management Institute, in its study on design thinking, discovered that design
oriented firms such as Apple, Starbucks, Steelcase, and Walt Disney outperformed S&P
index by 224% over a 10-year period from 2002.
Source: Design Management Institute
$45K
$40K
$35K
$30K
$25K
$20K
$15K
$10K
$5K
228%
$17.522,15
$39.922,89
JUN‘03
DEC’03
JUN‘04
DEC’04
JUN‘05
DEC’05
JUN‘06
DEC’06
JUN‘07
DEC’07
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DEC’08
JUN‘09
DEC’09
JUN‘10
DEC’10
JUN‘11
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JUN‘12
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JUN‘13
DEC’13
A $10.000 investment in our design index of diverse design-centric companies would have yielded returns 228% higher than the same investment in the
S&P over the same amount of time.
D.INDEX
S&P INDEX
DMI DESIGN CENTRIC INDEX
DESIGN CONSCIOUS
COMPANIES
APPLE
COCA COLA
FORD
HERMAN MILLER
IBM
INTUIT
NEWELL RUBBERMAID
NIKE
PROCTER & GAMBLE
STARBUCKS
STARWOOD
STEELCASE
TARGET
WALT DISNEY
WHIRLPOOL

24. • Apple’s products are simple to use, high quality, and beautiful. It created superb
experiences for its customers with significant emphasis on design.
• Strong customer loyalty results in improved financial performance.
5. Command Brand Loyalty

25. • Streamlining a business process plays a critical role in creating amazing digital
experiences.
• With insights and feedback learned from users during design thinking sessions, you
have an opportunity to eliminate manual steps and automate possible steps.
• One of our clients, a wholesale distributor, transformed his reverse logistics business
process by embracing design thinking.
6. Streamline Business Processes

26. • Mine was losing $1M to $2M worth of productivity while critical machinery was
down.
• Design centered solution cut the response time to few hours.
6. Streamline Business Processes
An Example
Mining Workers Call Centre Service Engineer
Calls Updates
Service Engineer approaches site to fix the issue
A leading global mining company’s customer support process was inefficient.

27. • Customer experience involves hardware, software and service.
• An incomplete solution that does not integrate the entire workflow of the end user
will result in an incompetent solution which is risky.
• It is important to consider software, hardware and service and ensure all are working
together cohesively.
7. End to End Integration: Hardware/
Software/Service Integration

28. • More ideas = More innovation.
8. Gain Competitive Advantage
At the heart of design thinking is abductive logic, which sits squarely between the past
data-driven world of analytical thinking and the knowing-without-reasoning world of
intuitive thinking.” - Roger Martin
Source: Roger Martin’s, “The Design of
Business”.
The design of business
The Knowledge Funnel
• Mystery
It starts with a question, intuition, curiosity
• Heuristic
Open-ended rule of thumb, incomplete but
helpful for organizing data
• Algorithm
Full description of the observation,
predictive and rational

29. “According to several reports, 50% of developers’ time is spent on correcting defects
and bugs”.
• With good design, Product Development Costs are reduced.
• Reduce Project execution Risks and improve ROI.
• With simple UX, Change Management becomes easy.
9. Reduce Cost

30. • Amazing customer experience is one of the key differences between new generation
companies such as Google, Amazon, Starbucks and Nike, and old guard.
• For example, Amazon is not only known for their order fulfillment and delivery but
also known for their easier and integrated reverse logistics.
10. Deliver Amazing Customer Experiences

31. • Eliminate technical debt that cripples development teams during maintenance and
scaling of the applications.
• The design thinking process enables Developers to have a deep understanding of the
user by leveraging storyboards, personas and wireframes.
11. Build High Quality Software & Eliminate
Technical Debt
“Sufficient amount of messy code may bring whole engineering department to a
stand-still”, - Sven Johann & Eberhard Wolff, INFOQ

32. Case Studies

33. • Airbnb attributes its market dominance to user-centred design.
• When they about to go bust at $200 revenue per week Airbnb discovered that all of
the photos for their listings were low quality and unattractive
• Airbnb decided to replace the amateur photos with high-quality photos and it
worked.
From near collapse to conquering the
market

34. “Going out to meet customers
in the real world is almost always
the best way to wrangle their
problems and come up with
clever solutions”
Joe Gebbia of Airbnb with First Round.

35. • Hyatt wanted to stay away from crowded luxury hospitality industry by creating
amazing experience for its guests.
• During Design thinking process they figured out that guests were waiting at airport
for shuttle bus.
• Hyatt moved the agents to airport where they could complete the process.
• ‘more approachable, less hiding’ approach of interaction between guests and hotel
staff.
• Customers were thrilled to have such experience.
Thrilling Guest Experience

36. • IBM’s revenue was down 14% year over year and it was the 14th consequent quarter
of losses.
• IBM has used design thinking to spur innovation and trained all of its employees and
trained over 8000 executives.
• By working with developers, IBM exceeded the expectations on BlueMix Product
development and it became a huge success in the market.
IBM’s success with Blue Mix

37. Getting Started

38. • Establish a Design Centre of Excellence (CoE).
• Partner with design consulting firms.
• Activate feedback loop and leverage existing channels such as app stores, portals,
and websites.
• Create dedicated websites where customers can submit ideas, discuss features, and
engage with customer support.
• Connect with your customers by actively seeking feedback from them through
reviews, feedback on your website, forums, and personal visits.
• Work closely with Marketing & Sales.
Getting Started With Design

39. Measuring ROI

40. • Measuring how design thinking impacts your organization is vital to getting
continued support.
• Few Direct & Indirect ways to measure creative effort are.
• # New Ideas generated
• Customer Support costs
• Application Maintenance costs
• Employee engagement
• Sales
• Risk
• Organizational Change Management
Measuring Design ROI

41. “In the modern world of
business, it is useless to be a
creative original thinker unless
you can also sell what you
create. Management cannot be
expected to recognize a good
idea unless it is presented to
them by a good salesman”
David M Ogilvy

42. Download the e-book on Design
Thinking from here:
http://www.algarytm.com/it-executives-
guide-to-design-thinking

43. About Algarytm
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Automation, Hybris eCommerce, Hybris
C4C, Design Thinking, User Experience.

44. Raj Peddisetty is a Digital Transformation advisor at Algarytm. Raj is a seasoned
practitioner of Design Thinking, User Experience in Mobile, Ecommerce, Cloud and
Marketing automation. Raj brings 11 years of experience in SAP, Oracle for industries
ranging from Wholesale, Retail to Manufacturing and Healthcare. Raj has worked as a
consultant, architect, developer for system integrators such as IBM, Accenture, Cap
Gemini, SAP, CSC. Raj has helped global business transformation projects for Fortune
500 clients such as Wyeth Pharmaceuticals, The Dow Chemical Company, Colgate
Palmolive, National Gypsum, Medtronic, The Patterson Companies, Harland Clarke.
Raj has an MBA from the University of Chicago Booth School of Business and is
certified in Design Thinking by IDEO.
About the Author
Contact him to learn more about how to leverage Design Thinking in IT Projects.

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