How organisations compete through experience
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PwC digital designer, Alex Gamble, talks about how to radically innovate through design.
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How organisations compete through experience
- 4. World-class organisations don’t compete on price, products, or features. They compete on experience. Great experiences are the ultimate drivers of preference, loyalty, and advocacy.
- 6. Amount of TV shows and movies pirated 260 mill, 2008 120 mill, 2013
- 7. = free = $10 per month
- 8. Another one…
- 11. Q4 2014 $687.30 per unit, 48 million sales iPhone average cost per unit vs. sales Q4 2015 $637.90 per unit, 39 million sales
- 18. Over coming the hype in HCD
- 19. Innovation is the buzziest buzz word ever!
- 21. …
- 27. A Value Change
- 30. A B Value Change
- 38. A B Value Change
- 40. How do you radically innovate?
- 42. It’s not HCD…
- 43. Radical innovation is a discontinuation with the past
- 45. “Every radical innovation Norman investigated was done without design research or without careful analysis of a person’s or even a society’s needs.”
- 51. So how do you radically innovate?
- 52. Two ways
- 53. Tech led
- 54. Design led
- 57. Battle to create games with better graphics and faster speeds!
- 58. A B Value Change
- 70. Fast games with good graphics Interactive games that everyone can play
- 71. Fast games with good graphics Interactive games that everyone can play
- 75. Designers can radically innovate through meaning change
- 76. How do we actually radically innovate?
- 77. Step 1: innovate for the right reasons
- 78. Outcomes > outputs Step 1: innovate for the right reasons
- 81. Innovation is an output! Step 1: innovate for the right reasons
- 82. Innovate if it will help you achieve your outcomes Step 1: innovate for the right reasons
- 83. OUTCOME: identify new revenue generating opportunities Step 1: innovate for the right reasons
- 84. Step 2: start with the underlining reason why
- 85. Example -> insurance Step 2: Start with the underlining reason why
- 86. Help people get out of difficult situations Step 2: Start with the underlining reason why
- 87. Step 3: remove all reference to today
- 88. Radical innovation is a discontinuation with the past
- 90. Get a bunch of outsiders Step 3: remove all reference to today
- 91. How might we support people when they get into difficult situations and help them get out of it? Step 3: remove all reference to today
- 92. DESIGN SOLUTIONS Step 3: remove all reference to today
- 93. Value Change
- 94. Value Change
- 95. Step 4: prioritise your hills
- 98. Value Change
- 104. Step 6: Test propositions
- 105. Your proposition
- 106. Your proposition
- 107. Your proposition
- 108. Your proposition
- 109. Value Change
- 110. Step 7: Use HCD to climb the most promising hills
- 112. Value Change
- 113. Summary
- 114. 1. Innovate for the right reasons 2. Start with the underlining reason why 3. Remove all reference to today 4. Priortise your hills 5. Create propositions 6. Test propositions 7. Use HCD to climb the most promising hills How to radically innovate
Notas do Editor
- PWC introduction For those of you from NZ you may have seen this in the NZ Herald on Friday Why experience is important What is a good experience How can you create a good experience How does this apply to financial people?
- All this began 13 years ago in Wellington
- We use a technique called Human Centered Design We believe that experience is the new competitive advantage
- For example, Netflix has changed an industry by creating a great experience
- Norwegian research body Ipsos MMI, have discovered that the piracy of TV Shows and Movies has decreased by over 50% since Netflix was launched.
- Your typical supply/demand curve
- What apple has done with the iPhone
- iPhone ACPU vs sales
- Talk about CCA process as an example of experience driven, not technology driven We used subsonic sounds to talk to the phone because it created a better experience Change to fonterra pic
- Download my book! Just google for ‘The Guide to Agile UX Design Sprints
- Incremental innovation is when…
- Radical innovation is when…
- Incremental innovation improves on existing experiences by improving what currently exists Target users are research and solutions are tested with them. At the core of HCD is user feedback
- Through human centered design this product went through a series of incremental innovations to climb up the hill to point B But how do we move to the hill with the greater value?
- When you jump the chasm to a new hill that has a higher amount of value
- iPhone was a change in tech and a change in meaning Change in tech because it went from a device that was used just to make phone calls and texts to one that combined touch screen, accelometer, camera, internet, and music Change in meaning because it went from a device that allowed people to call and text to one that can allow all this extra functionality in an easy to use way
- Over time, Apple has used techniques like HCD to climb up this new hill and arrive at the iPhone 6s
- Incremental innovation improves on existing experiences by improving what currently exists Target users are research and solutions are tested with them. At the core of HCD is user feedback
- The most interesting thing about all of this, which comes back to my point of needed in overcome the hype in HCD, is that HCD cannot be used to create radical innovation… A lot of you must think I’m crazy right now but it’s true... Here’s why...
- Recap incremental
- Recap radical
- How do you jump from point B to C?
- Every radical innovation Don Norman investigated was done without design research, without careful analysis of a person’s or even a society’s needs.
- Incremental innovation improves on existing experiences by improving what currently exists Target users are research and solutions are tested with them. At the core of HCD is user feedback
- Every radical innovation Don Norman investigated was done without design research, without careful analysis of a person’s or even a society’s needs.
- To jump that chasm, we need to separate ourselves from what currently exists Don Norman did the research. He found that every radical innovation he investigated was done without design research, without careful analysis of a person’s or even a society’s needs.
- Radical innovation is done through one of two things
- Enablement through a new technology
- A change in meaning Examples of a changes in meaning; Xero changing the meaning of accounting from something that needs qualification to do and you hire someone else for To something that’s easy to do yourself and is fun and enjoyable I’ll go into this more in a second
- To jump that chasm, we need to separate ourselves from what currently exists Don Norman did the research. He found that every radical innovation he investigated was done without design research, without careful analysis of a person’s or even a society’s needs.
- In the 2000s, before the Wii was released, there was a battle going on…
- Xbox and PS were fighting their way up the incremental hill of better graphics and faster games Nintendo hardly featured on this hill
- Nintendo jumped hills
- In the 2000s, before the Wii was released, there was a battle going on…
- In the 2000s, before the Wii was released, there was a battle going on…
- One of the most interesting things about this was that PS and Xbox’s research showed that the niche of expert gamers wanted more sophisticated virtual realities, so Microsoft and Sony invested significant resources to develop even more powerful processors. Nintendo instead challenged the existing meaning and produced a breakthrough experience from passive immersion in a virtual world into active physical engagement within the real world. It didn't matter that Wii used inferior processors and relatively low-quality graphics. They completely changed the dynamics of the game, attracting a large audience consisting of expert gamers as well as people of all ages who did not consider themselves game players. HCD didn’t create the Wii
- Need to focus on outcomes and not outputs
- An example of an output is an app. If people come to us at PwC digital and say “we want to create an app – we typically take them back a step and ask why” An app is a solution and without doing research and understanding the opportunity first, you don’t know if an app is going to be the right solution for your opportunity. So instead we focus on outcomes
- Outcomes are like goals. For example, FX anxiety decrease
- This is what so many people get wrong. Innovation is a solution to an opportunity – it’s not something you just do. What is innovating going to achieve? You have to ask yourself why you want to innovate in the first place
- For example, let’s say that a business has grown so much that they have basically saturated the market. They’ve hit a glass ceiling and can’t grow anymore. This business has decided to set an outcome to identify new revenue generating opportunities Having this broad outcome means they’re not narrowing their focus on an output just yet. Generating new revenue could be identifying new problems to solve, investing in a startup, or attempting to radically innovate. This way they’re exploring all the potential outputs and settling on the one that they think has the best opportunity of achieving their outcome.
- The underlining reason why is to help people get out of difficult situations when they get into it
- The goal here is to design solutions from a completely new perspective. To try and separate our solutions from what currently exists. For example, if we wanted to look at our insurance opportunity we could get a bunch of university students who haven’t dealt with insurance yet BUT… Don’t mention anything about the current situation for this meaning. For example, if we were designing a new meaning for insurance we would tell a bunch of outsiders to create solutions for this challenge; HMW give people support when they get into trouble Give your group of outsiders 5 minutes to design some good solutions for this reason
- Traditionally you want a lot of domain expertise when you design a product or service. However, these people cannot separate their thinking from what currently exist. To radically innovate, you need to get a bunch of people who know very little, if anything, about your opportunity and get them to design a solution to your underlining reason.
- Every radical innovation Don Norman investigated was done without design research, without careful analysis of a person’s or even a society’s needs.
- Nintendo jumped hills
- The goal here is to design solutions from a completely new perspective. To try and separate our solutions from what currently exists. For example, if we wanted to look at our insurance opportunity we could get a bunch of university students who haven’t dealt with insurance yet BUT… Don’t mention anything about the current situation for this meaning. For example, if we were designing a new meaning for insurance we would tell a bunch of outsiders to create solutions for this challenge; HMW give people support when they get into trouble Give your group of outsiders 5 minutes to design some good solutions for this reason
- The goal here is to design solutions from a completely new perspective. To try and separate our solutions from what currently exists. For example, if we wanted to look at our insurance opportunity we could get a bunch of university students who haven’t dealt with insurance yet BUT… Don’t mention anything about the current situation for this meaning. For example, if we were designing a new meaning for insurance we would tell a bunch of outsiders to create solutions for this challenge; HMW give people support when they get into trouble Give your group of outsiders 5 minutes to design some good solutions for this reason
- Don’t mention anything about the current situation for this meaning. For example, if we were designing a new meaning for insurance we would tell a bunch of outsiders to create solutions for this challenge; HMW give people support when they get into trouble Give your group of outsiders 5 minutes to design some good solutions for this reason help people get out of difficult situations when they get into it
- What you’ve got now is a bunch of ideas and you don’t know how much value each provides
- One may end up being like this
- You’ll now have a bunch of new hills. We don’t know how high they are yet but we’ve got new ones to explore You can use this table to score your concepts
- Create propositions for your most promising hills.
- For each of these hills we can create propositions
- Download my book! Just google for ‘The Guide to Agile UX Design Sprints
- Download my book! Just google for ‘The Guide to Agile UX Design Sprints