Designing Innovative Customer Experiences Sara L. Beckman Haas School of Business October 31, 2008

What is the value of good design? Or, why should we invest in design?

No Design Awareness

Design value isn't recognized at all

This attitude fosters design by default - form follows technical necessity and production efficiency

A few dominant issues take over

No Design Awareness

Style

Design is the gateway to being hip and cool

Design is applied style

Often perceived and practiced as a cosmetic afterthought

Style

Form and Function

Design makes things work better

This is the classic practice of design

Commonly limited to incremental improvements through the iteration of existing solutions

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Form and Function

Problem Solving

Design finds new ways to solve existing problems

The Design process generates creative alternatives within a problem space

Design also narrows down those options to a specific solution

Problem Solving

Framing

Design redefines the challenge

Framing sets the agenda, outlines the boundaries and axes of interest, and moves design from executing strategy to shaping strategy

Disruptive innovation lives here

Framing

Good Design Thinking values all of these approaches

Form and Function

Framing

Problem Solving

Style

Styling

Features & Functions

Problem Solving

Framing

Design Thinking used for…

iTunes Ecosystem

Digital Rights Mgmt.

iPod, Wheel

Apple Product Identity

Decades

Years

Quarters

Months

Example: Apple

Competitive Advantage

Designthinkingatthe“framing”levelprovideslong‐termcompe88veadvantage

DesignIndex:BusinessWeek&IDSAIDEAAwardWinners

InvestmentindesignpaysintheU.S.

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AndintheUKaswell…

hIp://www.dexigner.com/detail/files/1055.pdf

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Designthinkingallowsyoutoinnovateacrossthevaluechain

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Offering

ProductPerformance

Productsystem

Service

Delivery

Channel Brand CustomerExperience

Process

EnablingProcess

CoreProcess

Finance

BusinessModel Networking

Business Model: how the enterprise makes money (e.g., Dell)

Networking: enterprise, value chain & partner structure (e.g., Target)

Enabling process: assembled capabilities you typically buy from others (e.g., Cisco)

Core process: proprietary processes that add value (e.g., GE Capital)

Channel: how you connect your offerings to your customer (e.g., NikeTown)

Brand: how you express your offering’s benefits and values to customers (e.g., Virgin)

Customer experience: how you create an integrated experience for customers (e.g., Lexus)

Product performance: basic features, performance, functionality (e.g., Intel Pentium 4)

Service: how you serve your customers (e.g., UPS)

Product system: extended system that surrounds an offering (e.g., Microsoft Office)

Let’s look at the “design thinking” behind this performance

Concrete

Abstract

Analysis Synthesis

Design Thinking - Basic Structure

Concrete

Abstract

Analysis Synthesis

Design Thinking - Reframing

Tell a new story

Figure out the story

Concrete

Abstract

Analysis Synthesis

Design Thinking - Activities

Observations (Contexts)

Frameworks (Insights)

Solutions (Experiences)

Imperatives (Ideas)

Design Thinking - Process

Specifications

Concrete

Abstract

Analysis Synthesis

Design Thinking – Learning Theory

Assimilating good at understanding

a wide range of Information and putting

it in concise, logical form

Converging good at finding

practical uses for ideas and theories; solving problems

Diverging good at seeing

concrete situations from multiple viewpoints

Accommodating good a learning from hands-on

experience

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2

4

3

OBSERVATION

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Concrete

Abstract

Analysis Synthesis

Design Thinking - Activities

Observations (Contexts)

Frameworks (Insights)

Solutions (Experiences)

Imperatives (Ideas)

Specifications

Observa2on

Designthinkingisaboutdiscoveringpeople’sneedsandcrea8ngnewsolu8onstosa8sfythoseneeds

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Observa2on

Howdoyoufindoutwhatpeoplereallyneed?

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Observa2on

Youhavetoforgetaboutyourproblemsandworryabouttheirlives

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Observation entails understanding needs a the levels of use, usability, and meaning

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Meaning Meaning

Use, Usability and Meaning

Acorn preparation as practiced by the Mono Indians of Fresno and Madera Counties till about 1923.

Black and White Oak acorns provided all their “bread food.”

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This Indian woman is preparing acorn meal, a slow difficult process of pounding and grinding with a shaped stone.

Use, Usability and Meaning

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She is using a community mill, a large, flat granite boulder with many holes that serve as mortars.

Use, Usability and Meaning

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Use, Usability and Meaning

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Use

Use

The basic functionality of a product: –  explicit need –  task to be solved

–  work to be done –  what it has to do

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Usability

Represents aspects of a product that give the user access to the use: –  physical ergonomics –  cognitive sense

Usability Use

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Use and Usability

Usability Use

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Meaning

Usability Use

Meaning

Cultural stories communicating: –  organizing frames –  emotional resonance –  expectations

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Needs

Needs are gaps within use, usability and meaning

Usability Use

Meaning

We innovate by creating experiences that bridge these gaps.

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We understand needs at the meaning level through observation, which identifies…

Observa2onExamines

TriggersofUse

Observa2onExamines

TriggersofUse

Observa2onIden2fies

Interac8onswiththeuseenvironment

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Observa2onIden2fies

Workaroundsandcontradic8ons

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Observa2onIden2fies

IntangibleaIributesofasolu8on

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“You sent an Evite to our wedding!”

Observa2onIden2fies

IntangibleaIributesofthesolu8on

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What are the needs?

Meaning

Usability

Use

…but something goes amiss with the understanding of Meaning

Everything seems OK with the Use and Usability needs…

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The basic idea

We observe what people do

We listen to the stories people tell us

We listen to the stories people tell us about what they do

We look for Needs, the gaps between what people say and what they do…

…and ask why?

We then conceptualize solutions to fit those Needs

When asked to build a bridge…what do you do?

AFrameforObserva8onWork

“PayaIen8ontohowyourcustomersmightliketointeractwithyourproductsorservices,andaremarkablechangetakesplace.Youcandomorethansimplysa8sfytheirimmediateneeds.Youmightactuallymakeyourcustomersfeellikeheroes.”

11/1/08 54 The Art of Innovation

FRAMING

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Concrete

Abstract

Analysis Synthesis

Design Thinking - Activities

Observations (Contexts)

Frameworks (Insights)

Solutions (Experiences)

Imperatives (Ideas)

Specifications

Framing is a way of telling us what is important in a situation

Framing is a way of telling us what is important in a situation

What is inside and outside the picture

Framing is a way of telling us what is important in a situation

What is inside and outside the picture

Re-Framing is a way to understand the world differently

Within the context of Design

Framing sets the agenda, outlines the boundaries and axes of interest, and moves design from executing strategy to shaping strategy

Ladder up and down hierarchy of needs

To Do Framing

Needs Needs Characterization

Means of Learning about Need

Solutions Solution Characterization

Common Cultural Need shared by everyone

Generally implicit found through eliciting stories

New brands/ new businesses

Making things better

Context Situational Need driving consumer action

Often found by watching and listening in many places

New product families

Activity Directed Need fixing a problem or replacing what is missing

Found through observation of customer executing activity

New products

Interaction Specific product Need satisfying usability requirements

More explicit or stated needs that can be found through interviews

New product features

Making better things

Hierarchy of Needs

Hierarchy of Needs Ladder up by asking why? Ladder down by asking how or what?

Concrete

Abstract

Analysis Synthesis

Observations

Frameworks Imperatives

Solutions

Laddering up keeps you from getting stuck in the “express-test cycle”

Use timelines to map the data

- Days - Years - Eras

To Do Framing

Day in the Life Timelines The Story of Designing Acela

The 10 steps in a typical passenger trip: 1.  Learning (about routes, timetables, etc.) 2.  Planning 3.  Starting 4.  Entering 5.  Ticketing 6.  Waiting 7.  Boarding 8.  Riding 9.  Arriving 10. Continuing (their journey)

"We wanted to create a seamless journey. Riding on the train was actually the eighth step. Everything prior to the ride was something that Amtrak never connected with the experience.”

Corporate Design Foundation, www.cdf.org

Era Analysis

Use matrices to explore the space

To Do Framing

Neat

Messy

•  A non obvious pairing

Organized Disorganized

An Example of a Two-by-Two

•  Our culture’s norm

Good

Bad

Neat

Messy

Organized Disorganized

An Example of a Two-by-Two

•  These typologies often come with gaps…,

•  which can represent new opportunities

Good

Bad

Neat

Messy

Organized Disorganized

An Example of a Two-by-Two

Design for Extremes – Test at the Means

•  Build typologies by choosing characteristics of an experience and identifying extremes on a continuum

•  Hot -- Cold •  Quiet -- Loud •  Personal -- Social •  Interior -- Exterior •  By understanding the

extremes, we may better understand the subtleties of the situation

A Design for Extremes Story: OXO GoodGrips

Consider industry and competitive dynamics as well

To Do Framing

• Trends Affecting All Fast Food

–  Meal Blurring –  Health and Nutrition –  Working Moms –  Independent Teen

Spending

Consumers want a balance of both Emotional and Rational foods. “3 square meals” is virtuous but increasingly difficult for people to achieve.

Framing also looks at broader market trends

• Trends Affecting All Fast Food

–  Meal Blurring –  Health and Nutrition –  Working Moms –  Independent Teen Spending

Traditional Meals are now blurred, being replaced by snack events (both emotional and rational) throughout the day.

Framing also looks at broader market trends

Concrete

Abstract

Analysis Synthesis

Observations (Context)

Frameworks (Insight)

Imperatives (Ideas)

Solutions (Artifacts)

Low cost hearing aids

Willingness to pay

Prescribed by doctors

Ability to pay Distribution system

Low cost, high quality hearing aids

Framing also examines industry orthodoxies

IMPERATIVES

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Concrete

Abstract

Analysis Synthesis

Design Thinking - Activities

Observations (Contexts)

Frameworks (Insights)

Solutions (Experiences)

Imperatives (Ideas)

Specifications

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Impera8vesdescribeyourvalueproposi8on

•  Companiesbuildfeatures

•  Customersseekbenefits

•  Thevalueproposi8onconnectsthebenefitstothefeatures

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Impera8vesmaybeintheformofdesignprinciples

–  Asustainableproductworksasanintegratedsystem,andtellsaconvincingstoryaboutitslifecycle.

–  Asustainableproductsymbolizesbeing“in”whiles8llallowingforindividualityandpersonalexpression.

–  Asustainableproductconveysthesenseofbeingpartofalargermovement.

–  Asustainableproductcompetesfavorablywithmainstreamproductsbybeingelegantandofhighquality.

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Or,theymaybeintheformofametaphor

Takingashower…islike…hiDngtheresetbuGon

Impera8vesTelltheNewStory

•  Whatisthestoryyouaretellingnow?

•  Whatstorycouldyoubetelling?

•  Doesthestoryhangtogether?– Reliability– Validity

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Acela’sproposedstory:

“It’snotaboutthe8meittakesyoutogetsomewhere;it’sallabouthowyouuseyour8me.”

SOLUTIONS

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Concrete

Abstract

Analysis Synthesis

Design Thinking - Activities

Observations (Contexts)

Frameworks (Insights)

Solutions (Experiences)

Imperatives (Ideas)

Specifications

CONCEPTGENERATION

LogicalIdea8onMethods

–  Step‐by‐stepproblemanalysis–  Decomposi8on

–  Cataloguedsolu8ons AcelaPassengerJourney1.  Learning(aboutroutes,

8metables,etc.)2.  Planning3.  Star8ng4.  Entering5.  Ticke8ng6.  Wai8ng7.  Boarding8.  Riding9.  Arriving10. Con8nuing(theirjourney)

Electronic‐ Computerathome‐ Kioskatthesta8on

‐ MessagetocellphoneManual

‐Humangreeterwith8cket

– Sketching– Brainstorming

•  K‐JorAffinityDiagrams

– Storyboarding

Intui8veIdea8onMethods

CONCEPTSELECTION

ConceptSelec8on

• Mul2‐vo2ng

–  Eachpersonvotesforalimitednumberofconcepts

–  Theconceptswiththemostvotesarechosen

– Whataretheassump8onsunderlyingthisapproach?

ConceptScoring

ConceptSelec8onCriteria

–  Customerneeds–  Businessneeds–  Brandneeds

Don’tjustselecttherightconcept–developit.

CONCEPTTESTING

Prototype Early and Often

Inspire Evolve Validate (IDEO)

Successful innovation depends on testing lots of ideas (both good and bad) but it takes courage to risk putting a new idea forward.

Lower the barrier to innovation by using “low resolution” prototypes (crude, inexpensive) to test concepts quickly, safely and with less anxiety of failure.

Get in the habit of playing with ideas, even in simple settings (Get up out of your chair and draw!).

Purposes of Prototyping

Concrete

Abstract

Analysis Synthesis

Design Thinking - Activities

Observations (Contexts)

Frameworks (Insights)

Solutions (Experiences)

Imperatives (Ideas)

Specifications

ACOUPLEOFCOMPANIESTHATTOLDANEWSTORY

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How We Use Stories

Communicating Opportunities

Every company needs a story to help management and employees remember what matters most for their business. Elements that can make up a good company story: The starting point, a simple, recognizable truth The point of view, a memorable new way for the listener to think The storyteller, passionate but not crazy The mission, a narrative of change

A Dilemma

Epidemic hearing loss in performing musicians due to increasing sound levels onstage

At 115 DB permanent hearing loss starts after about 15 minutes

Today many bands operate onstage at 130 DB for hours, causing massive damage and a condition known as Tinnitus

Imperatives

Changed Shure’s positioning from hearing protection to:

Sound Quality

Control

Mobility

Portability

Imperatives

Positioning

Communication

Outcome

Re-branding of Shure

Outcome

New product development process

Outcome

A new category of professional products

Outcome

Shure quadruples its sales volume by moving into the consumer market with iPod in ear headphones

Outcome

Industry recognition, Shure is awarded a Technical Emmy in 2004 for its PSM development

Outcome

Changing what on stage performance looks and sounds like

“Is your child still in diapers?”

Suggests the possibility of a new category

This story in particular:

Outcome:

  New product category - disposable training pants

  Diaper technology is unchanged, but the product’s meaning is very different

Use and Usability

Wetness control in a disposable “clothing like” embodiment, clearly differentiated from diapers

Easy enough for kids to put on by themselves

Meaning

Children’s clothing are not waste disposal bandages

A new product representing success and physical control, not failure

“I’m not in diapers anymore!”

New category

Negotiating the physical and emotional uncertainties of toilet training

“Disposable Underwear” for toilet training

Concrete

Abstract

Analysis Synthesis

Observations (Context)

Frameworks (Insight)

Imperatives (Ideas)

Solutions (Artifacts)

Customers as people

Diapers as clothing Negotiating toilet training

I’m a big kid now!

Disposable “Underwear”

for toilet training

Concrete

Abstract

Analysis Synthesis

Design Thinking - Activities

Observations (Contexts)

Frameworks (Insights)

Solutions (Experiences)

Imperatives (Ideas)

Specifications

Designing Innovative Customer Experiences Sara L. Beckman Haas School of Business October 31, 2008