UX STRAT USA: Janaki Kumar, "Creating a Culture of Design-Led Innovation"

1. INNOVATIONBY DESIGN @janakikumar
DESIGN & CO-INNOVATION CENTER, SAP

2. 2004 2005 2006 2007 2008 2009 2010
$6B
$2.2B
@janakikumarSource: http://www.outsidethebeltway.com/chart-of-the-day-netflix-v-blockbuster-edition/
Reed Hastings
Image source: http://www.businessinsider.com/kodak-bankruptcy-19-2012-1

3. 2001 2002 2005 2007 20092003 2004 2006 2008 2010
6
9
12
15
Kodak Net Sale ($B)
$13B
Source: https://techcrunch.com/2012/01/21/what-happened-to-kodaks-moment/ @janakikumarImage source: http://www.businessinsider.com/kodak-bankruptcy-19-2012-1

4. INTREPRENUER
@janakikumar

5. “That’s cute— but don’t tell anyone about it.”
Steven Sasson
Inventor of Digital photography
on management reaction to his invention, via The New York Times (5/2/2008)
@janakikumarImage source: http://www.digitaltrends.com/cool-tech/two-pioneers-of-digital-photography-honored-by-national-inventors-hall-of-fame/

6. @janakikumarSource: Geffrey Moore, Best selling author of Crossing the Chasm, Zone to Win
Video source: https://www.youtube.com/watch?v=H4wQ7qavzfc

7. Cloud Computing
Smart Phones Social Network
Big Data
Internet of Things
Artificial Intelligence
Machine Learning
Customer Expectations
Gig Economy
Human Values
(usability, desirability)
Business
viability
Technology
feasibility
Innovation
@janakikumarSource: Forbes
0
10
20
30
40
50
60
70
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
Average company lifespan on S&P 500 Index (in years)
Projections based on current data
Video source: https://www.youtube.com/watch?v=H4wQ7qavzfc

8. Source: Digital Pulse 2015”, by Russell Reynolds Associates
HBR.ORGC
Media
Telecom
Consumer financial services
Retail
Technology
Insurance
Consumer products
Nonprofit
Business & professional services
Education
Health care
Asset wealth management
Industrial
72%
64
61
57
57
53
52
52
51
50
47
43
39
@janakikumar

9. If an egg is broken by an outside force, life ends.
If broken by an inside force, life begins.
Great things always begin from the inside.
“
”— Jim Kwik
@janakikumarImage source: http://www.happiemorning.com/2015/06/if-egg-is-broken-by-outside-force-life.html

10. How might we best harness the potential within organizations
and foster a culture of innovation?
DESIGN-MINDED INTREPRENUER
@janakikumar

11. • Humanize business software through design
MISSION
• Foster a culture of design-led innovation in organizations
@janakikumar

12. 400+
Customer
Engagement
450+450+
Customer
Engagement
@janakikumar@janakikumar

13. Ice-cream Delivery
@janakikumarImage source: http://www.ethnos.gr/diethni/arthro/o_ellinas_disekatommyriouxos_pou_epikirykse_tous_kleftes_pagoton-64445882/

14. Private Jet Customization
@janakikumarImage source: http://www.jetoptionsjetcharter.com/wp-content/uploads/2013/01/Global_6000_jet-_LRHR1.jpg

15. @janakikumar
Sports Website

16. @janakikumar
Healthcare

17. @janakikumar
Government Websites
Image source: http://www.info-adv.com/industries/government.html

18. SAP’s Award Winning Design Recognition
@janakikumar

19. @janakikumar@janakikumar
How we work
@janakikumar

20. @janakikumar

21. •Assess your organization’s innovation readiness
•Win executive support using neuroscience and empathy
•Harness diversity to drive innovation
AGENDA
@janakikumar

22. •Assess your organization’s innovation readiness
•Win executive support using neuroscience and empathy
•Harness diversity to drive innovation
AGENDA
@janakikumar

23. 40k
30k
20k
10k
$
$
$
$
Jun’03
Jun’05
Jun’07
Jun’09
Jun’11
Jun’13
228%
$39,922.89
$17,522.15
D.INDEX
S&P.INDEX
Source: Design Management Institute http://c.ymcdn.com/sites/www.dmi.org/resource/resmgr/Docs DMI_DesignValue.pdf
Design-centric organizations in the United States:
D.INDEX:
Whirlpool
Ford
IBM
Nike
Starwood
Steelcase
Coca-Cola
Apple
Newell Rubbermaid
Target
Starbucks
Disney
Herman Miller
P&G
Intuit
@janakikumar

24. The 3 Pillars of Innovation Culture
PEOPLE PROCESS PLACE
@janakikumar

25. Business
expert
PEOPLE with the right skill sets and mindset
@janakikumar
Innovation
Technology
expert
Design
expert

26. Empathy Collaboration Iteration
PROCESS that supports innovation, empathy,
collaboration and iteration
@janakikumar

27. PLACE that celebrates
collaboration & creativity
inspiring work
@janakikumar

28. PLACE that celebrates
collaboration & creativity
inspiring work
@janakikumar

29. PLACE that celebrates
collaboration & creativity
inspiring work
@janakikumar

30. fosterinnovationculture.com
@janakikumar

31. The 4 Stages of Innovation Readiness
Interested
Efforts are grassroots and
ad-hoc. Design is seen as
a cost.
Invested
Design is important and
some resources are
provided, but success is
not sustainable.
Engaged
Competent design
capabilities are used as part
of day-to-day business
activities.
Scaled
Design-led innovation is
practiced throughout the
organization, and design
drives business strategy.
1 2 3 4
@janakikumar

32. contact DCC@SAP.com for more information
@janakikumar

33. @janakikumar
55%
1 2 3 4
32% 13% 0%
Results based on 68 customers’ surveys so far
fosterinnovationculture.com

34. Common barriers
•Lack of design skill set & Mindset
•Product dev process not conducive to innovation
•Soloed offices
•Lack of executive and middle management support
@janakikumar
to a culture of innovation:

35. fosterinnovationculture.com
@janakikumar

36. •Assess your organization’s Innovation readiness
•Win executive support using neuroscience and empathy
•Harness diversity to drive innovation
@janakikumar
AGENDA

37. Baba Shiv Janaki Kumar
@janakikumar
Customer Experience Design:
a Neuroscience Perspective

38. @janakikumar
•Bring in the customer’s voice
•Find allies who have earned the executive’s trust
•Show evidence of validation results
•Show more than tell
•Engage the IKEA effect
Recommendations:

39. @janakikumar
When someone is invested in creating something,
they value it more.
IKEA Effect
Image source: http://www.dispatch.com/content/stories/local/2015/02/01/the-experience-that-is-ikea.html

40. •Assess your organization’s Innovation readiness
•Win executive support using neuroscience and empathy
•Harness diversity to drive innovation
@janakikumar
AGENDA

41. https://vimeo.com/161667423
@janakikumar

42. Quick failure:
No one agrees;
nothing happens +
everyone gets upset
Slow failure:
Everyone agrees;
nothing new
happens
Too Low Optimal Too High
Amount of
Diverse
Opinions
Team
Success
Creative Abrasion
@janakikumar

43. Practice Practice Practice
@janakikumar

44. @janakikumar@janakikumar

45. •Assess your organization’s Innovation readiness
•Win executive support using neuroscience and empathy
•Harness diversity to drive innovation
@janakikumar
SUMMARY

46. @janakikumar
ARE YOU READY?

47. Thank
you!
Janaki Kumar
Vice President
Design & Co-Innovation Center, America
SAP Labs
3475 Deer Creek Road
Palo Alto, CA 94304
M +1.650.283.8311
T @JanakiKumar
janaki.kumar@sap.com
@janakikumar
fosterinnovationculture.com