The design thinking transformation in business

@cathycracks @nunoandrew

The design thinking transformation in business

Webvisions Barcelona 2015

Cathy Wang @cathycracks

Nuno Andrew @nunoandrew


Design thinking is neither art nor science nor religion. It is the capacity, ultimately,

for integrative thinking.

Tim Brown

Thinking Transforms Organizations and Inspires Innovation.

New York: Harper Business (2009)


The Traveling Salesmanthe problem

Given a list of cities and the distances between each pair of cities, what is the shortest possible route that visits each city exactly once and returns to the origin city?


ant colony optimisation algorithmthe solution


Always design a thing by considering it in its next larger

context —

a chair in a room, a room in a house, a house in an environment, an

environment in a city plan.Eliel Saarinen


ARE YOU A DESIGNER?


Nuno Andrew@nunoandrewPortuguese. Australian. Europe based.

Project Manager at Method. London, UK

I like to focus on the intersection of design thinking and methodology, with organisational processes; advocating designs shifting value from product to process.

http://twitter.com/nunoandrew


Cathy Wang@cathycracksNomadic Vancouverite found mostly in Europe.

Experience Strategy Consultant London. UK

I spend a lot of time thinking about the future, systems, and the interconnectivity of world around us.

http://twitter.com/cathycracks


design thinkers treat businesses the way designers treat users


The design thinking transformation in business

Doing

Applying

Value


Design thinking is influencing everything.

things we do how we do things the tools we use how we communicate


Graphic Design

Web Design0.05

0.10

Changing trend in design occupationsThe rise in design thinking roles verses traditional, output driven roles

UX Design

Interaction Design

Jan ‘06 Jan ‘07 Jan ‘08 Jan ‘09 Jan ‘10 Jan ‘11 Jan ‘12 Jan ‘13 Jan ‘14 Jan ‘15

Perc

enta

ge o

f tot

al jo

b se

arch

es

Data courtesy of indeed.com trends


Organizations purchasing Design Capabilities

2012 May Mike&Maaike (Google)

2004 Aug Frog (Aricent)

2014 Oct Great Fridays (EPAM)

2011 Sept Method (GlobalLogic)

2015 May Lunar (McKinsey)

Business Consultants, Tech etc. all buying design

2014 Oct Adaptive Path (Capital One)

2013 May Fjord (Accenture)


Design Studios andProduct DevelopmentStudios like ustwo™ have been creating their own products, resulting in a hybrid model of both design services and self generated revenue.


Design Studios andProduct DevelopmentStudios like ustwo™ have been creating their own products, resulting in a hybrid model of both design services and self generated revenue.


The Startup StudioA new model of creating products/services/businesses within an studio context. Experimenting with the idea of an studio model that can create and launch multiple startups.


2011, $50M, 1.4M2005, $11.5M, 2.7B

2005, n/a, 190M 2004, n/a, 130M/mo. 2006, $3M, 55M/mo. 2007, $125M, 31.5M

2005, $51.6M, 12M 2010, $7.5M, 10M 2010, $9.8M, 7M 2004, n/a, 3.7M

2005, $51.6M, 12M 2005, $21.6M, 3M 2009, $3.7M, 2M 2009, $450K, 1.2M2010, $11.2M, 1M 2006, $0M, 1M

2008, $120M, ?M 2009, $169M, ?K 2007, $19.7M, 350K 2009, $2M, ?K2009, $550K, ?K

2010, $37M, 72M2010, $60.5M, 3.5M

in various startups

Designers as (co)founders

2010, $255K, 43K


Design leaders in enterprises

2012 JUNE Mauro Porcini. CDO

2010 MARCH Rogier van der Heide. CDO

2014 MARCH Ernesto Quinteros. CDO

2012 JUN Choi Gee Sung, Chief of design made CEO

2013 July Derek White. CDO

from CDOs to designers in the executive positions

Design is not lumped together with marketing anymore. Big enterprises are putting design right in the c-suite.


Chief Design Officer Apple


The corporation incubators

Corporate Startup Accelerators Corporate Venture Funds

Labs

The infrastructure & financial backing from enterprise go well to the fast-paced startup, to spark new ideas and foster design thinking.


How practical business strategy is moving forward parallel to design thinking

1989 Benchmarking

2009 Business Model Innovation

1995 Digital Strategy

2003 Open Innovation

1969 SWOT Analysis

2005 Blue Ocean Strategy

We are seeing trends of how design thinking are becoming close to traditional management consulting strategies.


Unified competency

Human/User

Technology

Business

Brand UNICORN

The industry is moving towards an unified competency of different areas. This cultural shift will help organisations be future-ready.


I NEED 50 WIREFRAMES NO.


I NEED 20 WIREFRAMES NO!


I NEED 20 WIREFRAMES WHY?

Design is not about the deliverables. It’s about delivering value.


Design is not about the deliverables.

Design is a way of thinking.


Design thinking can be described as a discipline that uses the designer's sensibility and methods to match people's needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity.

Tim Brown


Tim Brown

Graph from IDEO


We all know the design process

DISCOVERY VISION BUILD

Thinking

INTEGRATION

Designing Realising

LAUNCHDEFINITION

Graph Curtesy of Great Fridays


let’s really simplify the design process…

How is it going?How are we doing it?What are we doing?Why are we doing this?


IDEA 1 IDEA 2

80% user goals met 65% user goals met

75% technical feasibility 90% technical feasible

3months to complete 4months to complete

Each one of the ideas might be more desirable for different roles in different organisations.


Goals What problems are there? what problems could there be?

User Experience What are the user’s needs and goals?

Technology Can the technology platform support the idea?

What are the considerations?


DESIGN THINKERS

doing the great balancing act.


What are the considerations?

Goals What problems are there? what problems could there be?

User Experience What are the user’s needs and goals?

Technology Can the technology platform support the idea?

Organization Does the organization have the right resources for this?

Business Process Are there other processes involved in making the idea happen?

Financial How much does it cost, and how much of a return can be expected?


Business (Viability)

Technology (Feasibility)

People (Desirability)

experience innovation

The balancing act of business, people, and technology.


INFORM

INFLUENCE





We inform business decisions based on our visible knowledge areas.





We influence business decisions based on our understanding of business.


THIS IS DESIGN

THINKING




experience innovation


what is the driving force of a feature?

Works.io

What is the reason that there’s no filter or recommendation engine at the current state of the site?


how many users do you need before you have a recommendation engine?


The many considerations of product roadmap2015 2016 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Plat

form

sD

evKP

Is

online art fair

market place

data Science

recommendation engine

internationalisation

analytics

exhibition galleries

acquisition growth 1.2% Market share at 15%

seed round A round

Fund

ing

Works.io

A feature is more than just the consideration of users. There are many moving parts around a business to be taken into account.


Look ma, I am designing a business

Acquisition Rate

Revenue

Works.io

But really, there are so many things to consider in conjunction of product.


We are designing a business!


The designer’s questions for business

how to make sense of ideas from multiple sources?

how do you prioritize and build on the good ideas?

how do you factor constraints and capabilities to make the ideas happen?

how do you take different people’s needs into consideration?

how do you measure the impact of the idea?

how much effort is it needed to make the idea happen?

the same questions that we ask in design process can be applied to how business decisions are made


LEADERS, untitled or otherwise, realize the extraordinary impact they can have on others and the world around them.

They consciously choose to exercise their abilities, skills, and knowledge to help make a difference. Mark Sanborn

You don’t need a title to be a leader


DESIGNERS, untitled or otherwise, realize the extraordinary impact they can have on others and the world around them.

They consciously choose to exercise their abilities, skills, and knowledge to help make a difference.

We believe that the same quality applies to designers. You don’t need “design” in your title to be a design thinker


Problem Solution SolutionUnderstand Problem

Abductive Thinking

Business Thinking Design Thinking


to a hammer, everything is a nail


The car runs on fuel. You don’t start the car with fuel, you start it with electricity.

Jim Dawton


Design is the key variable to kick start and drive transformation to the future


Let’s think business design


how does a wildlife trust innovate its business?


how does a wildlife trust innovate its business?

Re-selling service package to healthcare providers for mental illness patients.


8Putting design thinking in practice

discover the bigger system

balance the different elements within the system

define new future


We are all design thinkers.


Thank You.

Webvisions Barcelona 2015

Cathy Wang @cathycracks

Nuno Andrew @nunoandrew


Books

http://www.amazon.com/Change-Design-Transforms-Organizations-Innovation/dp/0061766089

http://www.amazon.co.uk/Business-Model-Generation-Visionaries-Challengers/dp/0470876417/

http://www.amazon.com/You-Dont-Need-Title-Leader/dp/0385517475

Cathy Wang@cathycracks

Nuno Andrew@nunoandrew


http://en.wikipedia.org/wiki/Travelling_salesman_problem

ReferencesTraveling Salesman Problem

Cathy Wang@cathycracks

Nuno Andrew@nunoandrew

http://designerfund.com/infographic

Designer as Founders

http://www.designerfounders.com/

Woks.iohttp://works.io

Monument Valley / Ustwohttp://blog.monumentvalleygame.com/blog/2015/1/15/monument-valley-in-numbers

https://hbr.org/2015/06/navigating-the-dozens-of-different-strategy-optionsStrategy Options

Wildlife Turst UK & Mental Illnesshttp://www.wildlifetrusts.org/tackling-mental-illness

Electric Car by Yorlmar Campos from the Noun Project

Credithttps://thenounproject.com/term/electric-car/88448/

Nesta + Makeshift - The startup studiohttp://www.nesta.org.uk/event/startup-studios

http://designthinking.ideo.com/?p=49Design Thinking

Capital One / Adaptive Path

Design Agency Acquisitions

Mckinsey / Lunar

Accenture / Fjord

Facebook / Teehan + Lax

EPAM / Great Fridays

GlobalLogic / Method

Google / Mike & Maike

The design thinking transformation in business

Design

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