Design Thinking, Why It Matters

1. DESIGN THINKING WHY IT MATTERS. Mary Piontkowski Director of Insights & Service Design @ gotoresearch @maryp

2. “If you always do what you always did, you will always get what you always got.” Albert Einstein

3. gotoresearch utilizes mixed methods of research from applied ethnography to evaluative testing. These methods allow us to study the underlying needs, attitudes and behaviors of customers — gaining actionable insights to inform your product or service strategy.

4. INTRODUCTIONS • Name & Role • Company Description • What Interests You About This Visit? • Fun Fact

5. Businesses are seeing that applied design thinking grounded in empathy is key to strategic innovation and service design. Out with strategic planning and in with design thinking.

6. 80% of companies believe they deliver a “superior experience” to their customers but only 8% of their customers agree. Bain & Company Harvard Management Update

7. Forrester “Old sources of competitive advantage are business as usual. Now to be truly competitive your company must become customer obsessed, which means you need to have deep knowledge of and engagement with your customers.”

8. TRENDS Emergence of the Chief Customer Oﬃcer CEO now responsible for customer experience. Younger generations of customers now demand brands that “work” - “Functional Branding”

9. What is design thinking to you?

10. Design Thinking puts your customers at the heart of your business. It’s more than an approach, it’s a new philosophy and a cultural shift, for many.

11. Some Principles. DESIGN THINKING • Empathetic • Problem Finding • Collaborative & Hands On • Iterative & Rapid • Highly Creative

12. EMPATHY Design thinking starts with empathy for your audience. Empathy involves … • Deep listening • Perspective taking • Staying out of judgment • Recognizing emotion

13. EMPATHY Deep Listening & Observation

14. THE RIGHT BALANCE? TRY: Immersion What people experience ASK: Engagement What people say they do LOOK: Observations What people do Contextual Interviewing EthnographyParticipatory Design EMPATHY Methods Triangulation Source: Jan Schmiedgen, Design Thinking -Bootcamp http://www.slideshare.net/janschmiedgen/design-thinkingbootcamp

15. TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies? What is our current business model? What else could we offer? What other channel could we use? What customers would we sell to? What do we need to execute that design? What business design would create defensible profits? What could we offer? What ecosystem exists to meet those priorities? What customers do we want? What are their priorities? CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN Perceived Customer Value = Functional Benefits - Financial Cost Perceived Customer Value = Emotional Benefit - Hassle Factor EMPATHY Outside-In Mentality Source: Peer Insight (2007), Seizing the While SPace: Innovative Service Concepts in the United States

16. Transforming healthcare for children and their families: Doug Dietz at TEDxSanJoseCA 2012

17. “Minds are like parachutes; they only function when they are open.” - Thomas R. Dewar Empathy opens our minds.

18. PROBLEM FINDING Problem Solving doing the thing right Problem Finding doing the right thing Design Thinking helps you with solving the right, customer-centric problems Design Thinking Lean Start-up Agile Execute Source: Design of Thinking J. Schmiedgen

19. ITERATIVE & RAPID Google Ventures “Design Sprint” 2 3 BUILD LAUNCH LEARN IDEA 1 4

20. ITERATATIVE & RAPID Sketching & Rapid Prototyping. Photo Credit: Dept Industrial Design, University of Washington Photo Credit: http://cdn.free-power-point-templates.com RAPID SKETCHING & PROTOTYPING Photo Credit: Dept Industrial Design, University of Washington, http://cdn.free-power-point-templates.com, Jan Schmiedgen, Design Thinking -Bootcamp http://www.slideshare.net/janschmiedgen/design-thinkingbootcamp

21. COLLABORATIVE & HANDS ON Multi-disciplinary Teams.

22. CREATIVE SPACES or ? Which One Would You Choose?

23. CREATIVITY MODELS

24. HOW DESIGN FEELS UNCERTAINTY / PATTERNS / INSIGHTS CLARITY / FOCUS RESEARCH DESIGNCONCEPT PROTOTYPE Organized Chaos. Source: “The Process of Design” Squiggle by Damien Newman, Central Ofﬁce of Design

25. CREATIVITY MODELS DISCOVER DEFINE DEVELOP DELIVER insight into the problem the area to focus upon potential solutions solutions that work RESEARCH INSIGHTS IDEATION PROTOTYPES DOUBLE DIAMOND DESIGN PROCESS divergent convergent convergentdivergent

26. CREATIVITY MODELS UNDERSTAND EMPATHIZE OBSERVE POINT OF VIEW IDEATE PROTOTYPE TEST RE-FRAME EXPLORE EXECUTE Talk to Experts Research Experience Immerse Observe Engage Share synthesize Point of View Brainstorm Visualize Prototype Insight Big Idea Sticky Takeaway PROBLEM SPACE EXPLORATION SOLUTION SPACE EXPLORATION RE-ENTRY POINT MODEL

27. CREATIVITY MODELS FEASABILITY VIABILITY DESIRABILITY What can be in terms of capabilities and technology? What can be ﬁnancially viable? What is it people desire? SOLUTION / INNOVATION START USE EMPATHY FOR USERS & STAKEHOLDER Jan Schmiedgen, Design Thinking -Bootcamp http://www.slideshare.net/janschmiedgen/design-thinkingbootcamp

28. CREATIVITY MODELS COMPANY CAN COMPANY WILL COMPANY SHOULD DANGER ZONE Area of competency development Area of position change AREA OF INNOVATION BUSINESS MODEL MANAGEMENT Van Rosing, M. Rosenberg, Chase G. Rukhshaan, Taylor J. Applying Real-world BRM in an SAP Environment

29. “The future is best found in the opportunities that go unnoticed in the present.” Peter Drucker

30. CASE STUDIES WHO’S ALREADY DOING IT?

31. DISRUPTORS Addressing Latent Needs.

32. OUCH Amazon Dash Button.

33. Excuse me, where do I pay?

34. But I did all the work?

35. 80% of companies believe they deliver a “superior experience” to their customers but only 8% of their customers agree. Bain & Company Harvard Management Update

36. EMPATHY BUILDING & RAPID IDEATION HANDS ON

37. LET’S WARM UP Building Empathy. • Pick a partner • Share a story behind something in your bag

38. EMPATHY Design thinking starts with empathy. Empathy involves … • Deep listening • Perspective taking • Staying out of judgment • Recognizing emotion

39. Interview & Observation Techniques. CONTEXTUAL INQUIRY • Open-ended questions • The “5 Whys” • Avoid leading • Look deep • Blind spots & latent needs

40. Capturing What You See and Hear. EMPATHY MAPPING See Think & Feel Hear Say & Do Pain Gain

41. LET’S PRACTICE! Meet Doris.

42. Design thinking starts with empathy. 1. Work with your partner 2. Discuss & write down Doris’ pain points 3. Brainstorm things that could be done to solve Doris’ pain points

43. Design thinking starts with empathy. 1. Now rapidly sketch 8 solutions — what would new products and services look like?

44. Let’s share!

45. “If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.” Albert Einstein

46. THANK YOU. NOW GO & DO IT. Mary Piontkowski mary@gotoresearch.com @maryp

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