This webinar discusses an empathy-driven approach to business design and innovation. It emphasizes starting with customer needs rather than technology, focusing on niche markets with common problems, and taking a systems view of the customer experience beyond just products. Specific points include: - Many startups fail because they do not solve real customer problems. - Innovation should be pulled by customer empathy rather than pushed by new technologies. - Successful companies often solve big problems for niche groups rather than small problems for mass markets. - Products and services should address customers' functional, emotional and social needs. - The customer experience should be viewed as a holistic system beyond just the core product.

1. WEBINAR
Empathy-driven
Business Design
Putting the customer first at every
element in business design

2. 2

3. 3

4. 4
42% had “no market need.”
THE 1ST REASON WHY STARTUPS FAIL:
In other words, there was no customer.
-CB Insights, 2019.

5. 5
“I realized, essentially, that we had no customers because
no one was really interested in the model we were pitching.
Doctors want more patients, not an efficient office.”
CEO Treehouse Logic

6. 6
We had great technology, great data on shopping behavior,
great reputation as a though leader, great expertise, great
advisors, etc, but what we didn’t have was technology or
business model that solved a pain point in a scalable way.”
CEO Kolos

7. Current problems with innovation

8. 4
Tech-driven instead
of empathy driven
we are completely addicted to developing products
and test MVP’s instead of validating customer needs.

9. Tech-driven ideation is
an easy way to generate
new business ideas
9source: PwC, 2019

10. “The dream of selling that solution
became so attractive we invented
the customer problem”.
10

11. 4
Treating humans
as machines
Oversimplifying needs, while people are complex
beings with hard to research motivations

12. 4
Lack of systems
thinking
Blindness to the customer’s perception of value
delivery

13. It is time for a new approach to innovation

14. An empathy-driven
look on Innovation
Empathy Pull vs Technology push
Going beyond functional needs
Systems thinking vs indivudual squares
EMPATHY-DRIVEN INNOVATION FUNDAMENTS

15. EMPATHY-DRIVEN INNOVATION
People first,
technology second.
Starting with a clear indication of actual customer needs will
increase the success rate, drastically.

16. It sounds very simple, right?

17. It’s hard to empathize with mass markets
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18. 18
But finding common needs in niches becomes easier

19. The art of going smaller, instead of bigger
19
Conscious
shoppers of
Amsterdam
Looking for deals
Looking for quality
Looking for vegan
Vegan
Bio
0% Waste
niche
subniche
subniche
subniche

20. 20
Green Tech Lovers
San
Francisco
Black Limo Owners & Drivers
Some powerful niches
Looking for power +
sustainability
Looking for increasing
their revenue

21. How we used to segment
21
Demographic

22. How niches look like
22
Belief
system
Geography
InterestsHabits
Tech-
Savviness
Openness to
change
Demographic

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Exhausted, stressed
and in need of solutions
to de-clutter
From burnt-out Millennials to time-poor
Boomers, everyone is suffering. This group
is stressed, scared of failure, exhausted
and under pressure.
THE COMPRESSIONALISTS
Source: WGSN; Trendwatching

24. 24
The world seems too
complicated, but this group is
fighting back, together.
At the same time that consumers get
overwhelmed, others take a stand,
forming alliances that are informed,
fighting online hate, conscious and
sustainable.
THE WORLD AMBASSADORS
Source: FJORD Accenture; Trendwatching

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Goodbye to middle man,
hello to peer-to-peer
The mark of the makers is their self-
emancipation. They are politically-aware,
opinionated, entrepreneurial and make use
of data for their own profit, crossing
conventional market borders.
THE NEW MAKERS

26. The first rule in empathy driven-innovation:
discover big pains in small groups.
26

27. Ranking pains
27

28. Low impact problem
Doing nothing is a
viable option
28
Small Pain:
Mosquito Bite
A mosquito bite is a problem that is
not valuable, it has low impact, and
people can live with.

29. High impact problem
“I need a solution for
this problem, badly”
29
Big Pain:
Shark Bite
A shark bite is a problem that
customers are already trying to solve
by themselves, one that customers
are willing to pay for.

30. Mass
Market
Classifying Potential
30
Niche
Measure the size of your potential market

31. How to discover real
opportunities in niches?
31

32. Discovering real opportunities in niches
Mass
Market
Mosquito
Bite
Typical tech-driven
innovation, marketeers
love the potential, but in
reality users don't care.
X =
32

33. Mass
Market
Mosquito
Bite
Typical empathy-driven
innovation, marketeers hate it,
innovators see the potential to
“scale on niches”.
X
X
=
=
Shark
Bite
Niche
market
33
Discovering real opportunities in niches
Typical tech-driven
innovation, marketeers
love the potential, but in
reality users don't care.

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Today’s niches are
tomorrow’s defaults

35. A online-only supermarket for price-aware
modern urban busy convenience shoppers
with a green belief system

36. An internet-only restaurant chain for people
that want on-demand food that is as good and
cheap as eating at home, launched in urban
India

37. People looking to rent cheap
accomodations whenever events are
happening, door-to-door in NY

38. 38
In the Netherlands:

40. Small dutch entrepreneurs (new makers)
always “on the go” looking for a simple
digital solution for their companies.

41. In innovation, think niches and underserved markets.
start with empathy, not technology.
41

42. 42
idea
tech-driven
solution?
niche
who might
actually need it?
empathize
what and how big
is the need?
Avoiding the tech driven, MVP style innovation

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niche
find underserved
groups
empathise
learn about your
niche
idea
create unique
value for niche
Avoiding the tech driven, MVP style innovation

44. Tools next week!
44
niche
find underserved
groups
empathise
learn about your
niche
idea
create unique
value for niche

45. If you cannot find or describe your first 10
customers, you will never reach the first 1.000.000
45

46. Today’s winners are companies that solve big needs in
niches instead of small needs in masses.
46
First rule of empathy driven innovation

47. An empathy-driven
look on Innovation
Emathy Pull vs Technology push
Going beyond functional needs
Systems thinking vs indivudual squares
EMPATHY-DRIVEN INNOVATION FUNDAMENTS

48. Treating humans like machines makes innovation
predictable, boring and one-dimensional.
48

49. A premium
solar provider.

50. FUNCTIONAL INNOVATION: SOLAR PANELS
The value proposition
“You will earn back your
money 10 years from now"
Competition: Other more efficient solar panels, but also banking, since
it’s merely a financial decision (saving money).

52. MULTI-DIMENSIONAL INNOVATION: SOLAR PANELS
The value proposition
“We make roofs come alive”
Creating a world where you look around the neighborhood and the
roofs are all gathering energy.”

53. “we invented solar design”

54. MULTI-DIMENSIONAL INNOVATION: SOLAR PANELS
The value proposition (B2B)
Beautifully designed solar
architectural panels for special
construction projects
Solarix geeft energie aan mensen. Groene energie koppelen we aan schoonheid
en slimme toepassingen: Solar Design

55. Don’t settle for less
Zoom in on people and look for the mix of
functional, emotional and social needs you can
solve in a unique way.
55

56. An empathy-driven
framework - JTDB
Emathy Pull vs Technology push
Going beyond functional needs
Systems thinking vs indivudual squares
EMPATHY-DRIVEN INNOVATION FUNDAMENTS

58. I N N O V A T I O N
B E Y O N D
T E C H
58
Social Jobs Support JobsFunctional Jobs Emotional Jobs
4 types of jobs-to-be-done
Performing or complete
a specific task or
problem to solve.
Looking for a specific
emotional state, such as
feeling good or secure.
Look good or gaining
power or status: how they
want to be perceived by
others.
Perform supporting jobs in
the context of purchasing
and consuming value, as a
buyer, co-creator or as
transferrer of value.

59. I N N O V A T I O N
B E Y O N D
T E C H
59

60. I N N O V A T I O N
B E Y O N D
T E C H
60
Functional Job

61. I N N O V A T I O N
B E Y O N D
T E C H
61
Emotional Job

62. I N N O V A T I O N
B E Y O N D
T E C H
62
Emotional & Social Job

63. I N N O V A T I O N
B E Y O N D
T E C H
63
Social Job

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Designing for emotions is the next step in CX design
that answers the need to go beyond functional jobs

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UBER SUCCESS
Design for trust
Uber realised that in the taxi-business, trust
is essential. At every step of the customer
experience, they make an effort of
embedding trust.
see availability of
taxis instantly
no cheating on
the price
giving a face and review to
anonymous drivers

66. 66
STEDELIJK MUSEUM
Design for inclusion
In this modern & contemporary art museum of Amsterdam where
many exhibits challenge the reality in which we currently live with
new narratives, the museum itself follows the challenge of norms
with gender neutral toilets and temporary participative
exhibitions where families can participate.

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Design for fun
TIKKIE
Tikkie flipped a potentially embarrassing act -
charging your friends - into a fun and positive
experience through redesigning user
experience, new positioning, tone of voice and
friendly user interface.

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design for
inclusion
Design for
fun
design for
the future
Design for
convenience
design for
trust
A DESIGN SYSTEM TO NAIL
ALL TOUCHPOINTS
Create direction &
consistency through
Design Principles
Align on feeling and act on principle: in an era when all
brand logos are modern sans serif names, designing an
atmosphere through customer experience will be
king.
to align:
Product, added services, customer service, internet presence,
corporate communication

69. Winners are companies that are able to designing
products and services that press the right buttons in a
complex but validated set of jobs-to-be-done.
69
Second rule of empathy driven innovation

70. Our look on
Innovation
Niche markets
Multi-dimensional innovation
systems thinking: a logic customer driven business model
BLOCK 1: INNOVATION FUNDAMENTS

71. The empathy driven business model: creating a
holistic view of the value chain that makes sense to
customers
71

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Change the outlook from products to benefits, or jobs to be
done. Your customer will experience a whole journey from
before to after using your product, inevitably associated to
it. So better anticipate it, and design the whole thing.
Systems Thinking
GO BEYOND PRODUCT
Product
Design
Customer
Experience
A!iliated
platforms
governance
Partner
ecosystem
service
maintenance
Product
context
sales
funnel
retailer
delivery

73. Systems thinking at Tesla
Business
Model
Own the ecosystem
Go-to
Market
Boutique stores &
web-only
X X
Customer
Experience
Ludicrous mode/ OTA
updates
X
73
Value
Proposition
An electric car

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A product-service ecosystem brought together
representing the richness of the Italian culture.
Instead of being an imported-goods shop, the
company became an imported-culture experience,
now open in more than 35 locations around the
globe.
Design for cultural excellence
Eataly
EAT BETTER. LIVE BETTER.
Workshops
(wine, cooking)
Integrated
shop
Tours
Same-day delivery
A+ Supplier
network Online
shop

76. I N N O V A T I O N
B E Y O N D
T E C H
76
+ + ?

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Picnic : electric small cars, urban delivery, smarter routes with less footprint

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rebelfoods: makes sense for end client and producer

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Empathy driven business model:what used to be behind the
curtain and not important, is now part of your front end and how
you are perceived by the customer.

80. Empathy driven
design framework
Desirability, Feasability and Viability
BLOCK 1: INNOVATION FUNDAMENTS

81. 81
unicorn canvas

82. problem fit
is this problem interesting
enough to solve? Are we
in the right niche?
product fit
Is this the product
customers want Design,
price, platform, etc
business model fit
Subscription, auction, on-
demand, value-based,
cost-based, etc.
82

83. 83
Problem-Fit
Our first step in innovation is finding a problem that needs solving.
This means navigating customer empathy to discover real pain
points, and validation by experiments to get a firm grip of the
problem the customer is experiencing. We focus on niches with
common problems or needs and scale upon them afterwards — as
Uber, Picnic or Amazon did.
Date:Group name:Designed for:Job Statement Canvas
Designed for ktc. This work is part of a NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) license.
Verb
What is the customer
trying to do?
Product:
The product/service are you analyzing
Customer:
Who are using your product/service? Demographics, habits, distinctive traits
Object
To what object is the customer
trying to do the verb?
Context
The context is a
clarifier modifier
Functional Goal
Priority
Direction of improvement:
Minimize, eliminate, increase, create, other
Emotional Goal
+
Social Goal
Priority
Priority
Priority
Unit of measure/ customer value
Time, likelihood,frequency, risk, amount, number...
First 10 Canvas
Customer Development
Interviews
Problem Insight Canvas
Jobs to be done