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BM2217 THE BUSINESS GOALS Design Thinking and Ideation (Stevens, 2021) Design Thinking Process Technopreneurs use the Design Thinking method to solv...

BM2217 THE BUSINESS GOALS Design Thinking and Ideation (Stevens, 2021) Design Thinking Process Technopreneurs use the Design Thinking method to solve challenging problems and transform opportunities into innovations. Teams use the Three Lenses of Human-Centered Design to work through a series of steps and activities toward a desirable, feasible, and viable solution. Figure 1: Three Lenses of Human-Centered Design Source: https://www.konrad.com/design-thinking-purpose Due to the repetitive nature of design, the Design Thinking process can be compared to a playbook rather than an agenda. Teams can use empathy to understand their customers better. When models need to be tested, they use Prototypes. Test results often allow new concepts and definitions to emerge, redefining the opportunity. Every business starts with an idea. In design thinking, there are two (2) important factors to consider. Customer Experience: A product is effectively purchased by customers based on the perceived experience it offers. For instance, coffee lovers buy coffee makers because they like the idea of drinking freshly brewed coffee. Design: An action, fact, or material object has a purpose, plan, or intention behind it. The customer’s perception of the experience is the basis for design. According to Raja (2018), understanding that “good design is about recognizing that the person on the other end has much less patience than you do” is essential. Therefore, providing or delivering something delightful to users is preferable. Design must either address a specific issue or seize an opportunity. It is judged on how well it does that. 03 Handout 1 *Property of STI  [email protected] Page 1 of 7  BM2217 The Integrated Design Thinking framework The Integrated Design Thinking framework unpacks the box of creativity and provides clear objectives for collaboration rather than attempting to jump directly from mountains of research data to ideas. The Design Thinking process uses various tools to complete a few core activities at each step. Figure 2: The Design Thinking 5-Stage Process Source: https://www.konrad.com/design-thinking-purpose The goal of the non-linear, iterative design thinking process is to comprehend and relate to design uses, question assumptions, identify and redefine problems, devise novel alternatives, and produce and test prototypes. Additionally, design thinking is a method for creating or improving services and products based on user, client, or customer experiences. It means success can only be achieved by focusing on a single issue or opportunity. Keep in mind that providing customers with products or services that are simple to use and convenient is an important consideration. These steps of design thinking are not sequential and may be followed in any order to come up with a better product or service. 1. Empathy is recognizing, comprehending, and sharing another person’s emotions. Design decisions are based on how others feel. As a result, it makes it possible for technopreneurs to develop a sympathetic understanding of the problem being solved. It is like stepping into the shoes of a customer or client. During this stage, the technopreneurs can learn about the requirements of customers or clients and create the ideal experience by comprehending the current experience. According to Stevens (2018), the information gathered at this level may be utilized by the subsequent levels to assist in defining the issue and addressing it. The empathy map is a useful tool for technopreneurs to understand their customers better and end users. One must put oneself in the customer’s shoes when designing a customer experience. Draw a map of what customers think, say, do, and feel about a specific experience. When shopping for a television, take a look at the image below. 03 Handout 1 *Property of STI  [email protected] Page 2 of 7  BM2217 Figure 2. An Empathy Map in Buying a Television Source: www.nngroup.com/articles/empathy-mapping 2. Define. The problem is found and looked at this level. Ideas would also begin to emerge, which should be recorded. The entrepreneur ought to move on to ideation as soon as the thoughts start to flow. 3. Ideate is the creative process of coming up with new ideas during brainstorming sessions. You focus on coming up with new ideas in this mode of the design process. When technopreneurs consider novel approaches to problem-solving, creativity emerges at this level. 4. Prototype. At this level, experimentation is essential. Ideas become tangible outputs, such as a reduced product model or service proposal. This step is crucial in evaluating each solution and highlighting any limitations or flaws. Depending on how they performed during the prototype phase, the formulated solution may be accepted, improved, redesigned, or rejected. 5. Test. Using the solutions identified during the prototype phase, tests are carried out to validate the service or product. The procedure is not entirely completed here. The designer or technopreneur would typically be brought back to square one by the test results most of the time. It presents an opportunity to develop empathy with the product’s intended audience. It makes the product or service in question better. 03 Handout 1 *Property of STI  [email protected] Page 3 of 7  BM2217 Strategy Formulation: Hierarchy of Goals A business, especially a start-up, can be considered a living entity. Start-ups are much like babies that need guidance and nurturing. Guidance can come from vision and mission statements. Bradford (2018) stated that a company’s vision and mission are important for effectively showing the brand and internal operations. It keeps a company’s feet grounded and drives employees forward. To build a good strategy, organizations need to have a common purpose. The purpose is the primary and fundamental reason for an organization’s existence, not only to inspire the organization but also to help employees develop their priorities and roles and understand their colleagues’ priorities and roles. The following are the critical elements that an organization must develop before strategy formulation: Figure 3. Hierarchy of Goals Source: https://cdn.sketchbubble.comhierarchy-of-goals Vision. It refers to the desired future state or “big picture” of an organization’s goal. A vision is a goal that is massively inspiring, in-depth, and long-term. It represents a destination that is driven by and evokes passion. It communicates a company’s beliefs and governing principles to the community and the members of its organization. A good vision should be brief, clear, and well beyond narrow financial objectives. Although they cannot be accurately measured by a specific indicator of how well they are being achieved, they provide a fundamental statement of an organization’s values, aspirations, and goals. John Kotter, an American educator and business consultant, lists in his book “Leading Change” all the characteristics that should be included in an effective vision: Imaginable: A good vision conveys a picture of the future. Desirable: It appeals to the long-term interests of employees, customers, stockholders, and others who have a stake in the enterprise. Feasible: It comprises realistic and attainable goals. Focused: It Is clear enough to guide decision-making. Flexible: It is general enough to allow individual initiative and alternative responses in light of changing conditions. Communicable: Is easy to communicate; can be successfully explained within five (5) minutes 03 Handout 1 *Property of STI  [email protected] Page 4 of 7  BM2217 Example: Samsung’s vision is “To inspire the world with our innovative technologies, products, and design that enrich people’s lives and contribute to social prosperity by creating a new future.” Mission. A mission statement is more specific and action-oriented than a vision. It outlines the organization’s primary purpose and the basis of competition and competitive advantage. Effective mission statements have the greatest impact when it reflects an organization’s enduring, comprehensive strategic priorities and response to multiple primary stakeholders (customers, employees, suppliers, and shareholders). The following are the general characteristics of a good mission statement: Concise. It must be short so that everyone can remember and understand. Outcome-oriented. It should be measurable so that the company can visibly see progress. Inclusive. It must include all the stakeholders involved in implementing a company’s strategy. Example: Philippine Airlines’s mission is “To deliver safe, reliable, efficient, and pleasant travel experience exceeding passenger expectations. To provide a satisfying career to our employees and adequate returns to stockholders. To represent the best of the Philippines, the Best of Filipinos to the world. ” Strategic Objectives. These are the specific and measurable results focused on achieving an organization’s mission. The strategic objectives guide how the organization can fulfill or move toward the higher goals (mission and vision) in a more specific and well-defined time frame. For objectives to be meaningful and effective, they must possess the following criteria: Measurable. At least one indicator must measure progress against fulfilling the objective. Specific. This means providing a clear message as to what needs to be accomplished. Appropriate. It must be consistent with the organization’s vision and mission. Realistic. Given the organization’s capabilities and environmental opportunities, it must be an achievable target. In essence, it must be challenging but doable. Timely. There must be a time frame for achieving the objective. Example: One of Facebook’s strategic objectives is coordinating with governments to allow their citizens to access the online social network. This intensive strategy aligns with Facebook’s corporate mission and vision statements, emphasizing growth through global market reach. Value Proposition A value proposition is a company’s promise to a customer or market segment. This sentence sums up how a business intends to fulfill its promise and how its market offering will benefit clients. It concisely outlines how a company sets itself apart from the competition, what makes the service “special,” and why the company is the best choice available. 03 Handout 1 *Property of STI  [email protected] Page 5 of 7  BM2217 Figure 4. Hierarchy of Goals Source: https://cdn.sketchbubble.comhierarchy-of-goals Guides when developing a value proposition statement: Avoid vague or indirect statements. A good value proposition statement should be brief, straightforward, and simple. Most customers do not have time to dissect value positioning statements all day. Avoid dishonest or deceiving statements. A good value proposition statement should not give false promises that do the opposite of conveying how the company will deliver its commitment. Avoid being too complacent. Always remember that competitors are never far away when customers need a quick and convenient alternative. Understanding value proposition statement: Benefits versus Features The company focuses on how well its product’s features work and how it will improve the user’s life. Even though the meanings of the terms may appear similar, their concepts are completely distinct. The main difference between benefits and features is that benefits are statements or words that show how the product or service has improved or revolutionized the customer’s life, while features are statements or words that specify the qualities of the product or service being discussed. Parameters of Features Benefits Comparison It is something that helps in It is something that is seen after Meaning determining the qualities of the using the product or service by product or service the customers Communicate What is good Why is it good Specifications or the different Emotional connectivity can be Shows facts for the given product or built by the customers while service using it 03 Handout 1 *Property of STI  [email protected] Page 6 of 7  BM2217 Parameters of Features Benefits Comparison Details of the service or Changes in the life of the user Provide product that has been talked after buying it about Focus on Product or service Customer The basic elements of a value proposition include the following: Offering: The product or service that solves problems/adds value. (What) Audience: The ideal customer or target audience who will benefit from your offering. (Who) Value: The recognizable benefits that matter most to the customer. (Why) Differentiator: The reason the customer should trust you over someone else. (How) Example: Zoom Value Proposition Zoom has significantly increased its value for those who want to stay in touch and have some semblance of facetime during COVID as communication has moved from in-person to digital. People who have never used Zoom before quickly become familiar with the platform, demonstrating the “frictionless” advantage. Zoom lets companies and organizations bring their teams together in a frictionless environment so they can accomplish more. Offering: Video communication platform Audience: Enterprise teams in finance, education, healthcare, and government Value: Connect and accomplish more Differentiator: Frictionless or “easy to use” References Balachandran, B. V. (2018). The next big thing in the start-up ecosystem - technopreneurship. https://www.entrepreneur.com/article/312888 Baumann, S. (2022) Handbook on Digital Business Ecosystems: Strategies, Platforms, Technologies, Governance and Societal Challenges. Massachusetts. Edward Elgar Publishing Inc. Buckley, P., Nzembayie, K. (2022) Digital Entrepreneurship Disruption and New Venture Creation. Massachusetts. Edward Elgar Publishing Inc. CFI Team (2022). Types of Business. https://corporatefinanceinstitute.com /resources/management/ types-of-businesses/ Medina, R. (2014). Entrepreneurship and small business management. Quezon City: Rex Bookstore. Morato, E. A. (2017). Entrepreneurship. Quezon City, Philippines: Rex Printing Company. Qayum, A. (2022) The 7 best business plan examples. https://www.oberlo.com/blog/business-plan-examples Simplilearn (2022). Business Planning: It’s importance, types, and key elements. https://www.simplilearn.com/business- planning-article Vermeulen, F. (2018). The first step of business model innovation: Focus. https://www.forbes.com/sites/freekvermeulen/2018/01/11/the-first-step-of-business-model-innovation- focus/#668bc8935022 03 Handout 1 *Property of STI  [email protected] Page 7 of 7