Design Thinking: Theory to Practice PDF

Design Thinking Theory to practice GUEST LECTURE JUNE 24, 2024  About INNOVATION & EXPERIENCE DESIGN What When today‘s Why...

Design Thinking Theory to practice GUEST LECTURE JUNE 24, 2024  About INNOVATION & EXPERIENCE DESIGN What When today‘s Why session How 2 INNOVATION & EXPERIENCE DESIGN 1. Intro 2. Background and Theory 3. Learnings and Takeaways 4. Discussion 3  INTRO Florian Kraus INNOVATION & EXPERIENCE DESIGN Principal EY etventure About me About us I love to work at the edge of ‚Business x Innovation‘ Combining the best of two worlds B.Sc. and M.Sc. in Business Management Started around 2010 as a Venture Builder Ventured around the globe (GER, PRC, IND, USA, …) Attracted corporate clients along the way Got inspired for all things Digital, Innovation and Joined the EY Group in 2017 Startups since spending a couple of months in Silicon Globally connected via the ‘Innovation and Experience Valley back in 2013 Design’ network Supporting my clients in creating value by bridging Today: Delivering engagements to support our clients’ from strategy to execution transformation agenda, achieve business growth and create solutions that users love 4  How Zappos disrupted the shoe retail industry Selected success criteria INNOVATION & EXPERIENCE DESIGN Customer Experience first Fake it till you make it Lean execution 5  From failing startup to global giant AirBnB’s turnaround INNOVATION & EXPERIENCE DESIGN Started in 2008 Stagnating revenues of $200 per week Reason: crappy website experience, as people couldn’t really see what they were paying for How they did it: 1 Understood 2 Acted 3 Supported 4 Failed happily, ‚Jobs-to-be-done‘ user-centric crazy ideas didn‘t give up 6  Taking Design Thinking to the Corporate world Development of new business models (possibly by further developing the core business) with massive additional benefits INNOVATION & EXPERIENCE DESIGN TRANSFORMATIVE for distant or previously unrecognized new customers. - Disruptive new Innovation Redefining the industry by creating new markets and capabilities Products & Services ADJACENT - Leveraging existing strenghts and assets into new areas / Expansion markets or products / services existing CORE – Incremental changes and optimization of existing products and Incremental services, e.g. Service improvement, optimizing internal processes Innovation existing new Starting point / today Customer segments 7  INNOVATION & EXPERIENCE DESIGN Design Thinking 8 INNOVATION & EXPERIENCE DESIGN „Design is not just what it looks like and feels like. Design is how it works.” - Steve Jobs 9  How Design Thinking picked up over the years 6.000 INNOVATION & EXPERIENCE DESIGN 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Factiva (English publications; free text “design thinking”) 10  Design Thinking was born and developed at Stanford University ‘70s Developed at INNOVATION & EXPERIENCE DESIGN Stanford University ‘90s David Kelly developed Design Thinking as a methodology for solving complex problems and 2003 founded IDEO Stanford University‘s Hasso Plattner Institute of Design, known as the d.school, is founded 2007 Research projects are conducted at the School of Design Thinking Hasso-Plattner-Institut in Potsdam 11  INNOVATION & EXPERIENCE DESIGN What is Design Thinking? 12  In its core, it is… Mindset INNOVATION & EXPERIENCE DESIGN Defined Process Mixed Method Toolset …to solve problems and develop new ideas in a way, so that they are attractive for customers / users and have high degrees of market and product orientation. 13  “Design Thinking is a human- Desirability: Do they want it? centered approach to Will it solve a relevant problem? innovation that draws from Will it be engaging and speak to peoples‘ hearts INNOVATION & EXPERIENCE DESIGN and minds? the designer's toolkit to integrate the needs of people, People the possibilities of technology, and the requirements for business success” Tim Brown Chairman IDEO Business Technology Viability: Should we do it? Feasibility: How do we do it? Can we afford it? Can it be built at all? Can we offer this for an attractive price? Can it be built within our constraints? Does it comply with laws and regulations? Design thinking 14 INNOVATION & EXPERIENCE DESIGN When do we use Design Thinking? 15  When should you apply Design Thinking? The STACEY-Matrix Easy INNOVATION & EXPERIENCE DESIGN Goal / Features Everything is known unclear Complicated More is unknown than known What? Complex The unknown unknowns Chaotic Unknowable unknowns Design Thinking Goal / Features clear Resources / How? Resources / Technology Technology clear unclear 16 INNOVATION & EXPERIENCE DESIGN Why is Design Thinking important? 17  “You cannot solve a problem with the same INNOVATION & EXPERIENCE DESIGN mind that created it.” If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes. 18  Design Thinking, applied INNOVATION & EXPERIENCE DESIGN Doug Dietz Innovation Architect @ GE Healthcare 80% of pediatric patients had to be sedated Challenge: Transform healthcare for children and their families by turning medical scans into adventures… 19 INNOVATION & EXPERIENCE DESIGN A few impressions of the final result 20  Adventure Series Scanner Sedation dropped from 80% to 1% INNOVATION & EXPERIENCE DESIGN 92% increase in patient satisfaction Human Question How could one create a scanner experience that children would love? Insight 80% of pediatric patients have to be sedated. Business Question How do we design the best MRI scanner? 21  Best practice: The FridgePack Alcoa knew that: INNOVATION & EXPERIENCE DESIGN - people prefer cans to bottles - can-sales in the US were decreasing Point Forward identified a post-purchase barrier in Sales +10% refrigerators. in the US 2002 Reframed design challenge: How might we re-design the Point Forward used packaging of cans to make intensive need-finding to them easy to carry and explore desires, needs and convenient to store? opportunities in US households. The story behind Fridge Pack - Atlanta Business Chronicle (bizjournals.com) 22  Why user centricity matters –a real life example INNOVATION & EXPERIENCE DESIGN The obvious problem Incubators are too expensive 23  Why user centricity matters –a real life example INNOVATION & EXPERIENCE DESIGN The obvious solution An incubator at 10% of the price 24  What it lead to INNOVATION & EXPERIENCE DESIGN Prototype Product Relevance 25 INNOVATION & EXPERIENCE DESIGN How to apply Design Thinking and how to apply it, successfully? 26  About Design Thinking and how to Your mind is like a parachute make sure it can work It doesn't work unless it's Come with an open mind INNOVATION & EXPERIENCE DESIGN open Listen & build upon each other - Frank Zappa Be bold, dream big Be creative Think, say, do unconstrained Discuss, share and ask questions No wrong answers 27 INNOVATION & EXPERIENCE DESIGN „Problem solving involves not only the search for alternatives but the search for the problems themselves.“ Herbert Simon 28  “Everybody is creative by birth, most people just lack the INNOVATION & EXPERIENCE DESIGN method.” EDWARD DE BONO 29 INNOVATION & EXPERIENCE DESIGN How is Design Thinking making a difference? 30  Classic approach vs. user centered way of working classic user centered INNOVATION & EXPERIENCE DESIGN Scalability of the use case Technical feasibility of the product Willingness to pay We can reach the user There are users with a problem, searching for a solution 31  Implementing successfully, requires knowledge about the user and how to create value INNOVATION & EXPERIENCE DESIGN The biggest challenge is, to align corporate‘s goals with users‘ needs. 32  How to keep track Design Thinking Lean Startup Agile INNOVATION & EXPERIENCE DESIGN Ideate Learn Sprint Planning Abstract Define Product Execution of backlog Sprint Prototype & Test Pivot? ITERATE Concrete Empathy Start Sprint Shippable review increment 33  Design Thinking: The ‘Double Diamond’ provides a structured The Double creative approach to problem solving. Divided into four distinct phases, Discover, INNOVATION & EXPERIENCE DESIGN Diamond Define, Ideate and Test, it maps the divergent and convergent stages of the design process, showing the different modes of thinking that designers use. INSPIRATION IDEATION 34  Design Thinking – The Double Diamond INNOVATION & EXPERIENCE DESIGN The "Double Diamond" is a structured, creative approach for problem solving. Devided into four phases ”Empathy", "Define", "Ideate" und "Prototype & Test“, it covers the divergent and konvergent phases of the design process and shows the various ways of thinking, that designer apply. New Challenge Prototype opportunity identified validated PROBLEM SOLUTION 35  From understanding the problem to developing a solution INNOVATION & EXPERIENCE DESIGN EMPATHY DEFINE IDEATE PROTOTYPE & TEST PRBOBLEM SOLUTION Formulating a Exploration phase Synthesizing Defining most Going crazy in Selecting the Developing Performing user Design Challenge (Interviews) findings important ideation most promising hypotheses and tests for personas and ideas building prototypes validation and needs improvements 36  Keep in mind: this is how Design Thinking works well INNOVATION & EXPERIENCE DESIGN Successful Design Thinking work = Knowledge of Broad Range of Techniques + Confidence and Empowerment to execute + Desire for Continuous Repetition to find Impact 37  How much time to spend in each phase? INNOVATION & EXPERIENCE DESIGN Don’t do it like this Do it like this PROBLEM SOLUTION PROBLEM SOLUTION Alignment Research Ideation Prototyping Testing Alignment Research Ideation Prototyping Testing 5% 5% 40% 25% 5% 20% 40% 10% 5% 20% Refinement Refinement 20% 5% 38  INNOVATION & EXPERIENCE DESIGN Let‘s discuss 39  Let’s discuss INNOVATION & EXPERIENCE DESIGN What is your worst customer experience and how would you improve it by applying design thinking? 40  INNOVATION & EXPERIENCE DESIGN Literature DESIGN THINKING 41 INNOVATION & EXPERIENCE DESIGN Dream big. Start small. Scale fast. INNOVATION & EXPERIENCE DESIGN LET‘S KEEP IN TOUCH We are Florian Kraus Principal EY etventure Mail: [email protected] Mobile: +49 160 9391 9862 https://www.linkedin.com/in/floriankraus/ 43