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    Date: 23 October 2009

    BOSTON . LOS ANGELES . MILAN . SEOUL

    The Design Thinking Approach

    to Innovation

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    Our goals for today:

    Our goals for today

    To explain Design Thinking and its benefits

    To discuss the elements of Design Thinking and the process weuse at Continuum

    To share some of the tools we use in our process

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    Who we are

    Continuum is a design and innovation consultancy. Westudy people. We recognize opportunities and identifybreakthrough ideas. We make those ideas real.

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    INSULET/ Freedom By Design

    Creates New Category

    SWIFFER/ Enabling Aspirations

    Creates $1 Billion Category

    REEBOK/ Pure Innovation

    Doubles Sales to $2B

    MIT MEDIA LAB/ Enabling Education

    Revolution by Design

    AMERICAN EXPRESS/ Premium

    Privilege of Membership

    Pampers/ Understanding Moms

    P&Gs First $6 Billion Brand

    What weve done

    QUEST DIAGNOSTICS/ Building Empathy

    Reducing Anxiety

    NATIONAL PARKS/ Creating Emotional Affinity

    Bringing the Parks to the People

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    Service sector experience

    We have partnered with a wide range of educational institutions, government agencies,

    professional associations, and for-profit service providers.

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    Americas

    Boston, MAColumbus, OHCleveland, OHLos Angeles, CASan Francisco, CAKansas City, MOChicago, ILPortland, ORCozumel, Mexico

    EuropeParis, FranceLondon, UKBerlin, GermanyRome, ItalyMilan, ItalyMadrid, SpainIstanbul, Turkey

    AsiaTokyo, JapanYokohama, JapanShanghai, ChinaBeijing, ChinaHong Kong

    Bali, IndonesiaDelhi, India*Bangalore, India*

    Groton, CTTampa, FLPhoenix, AZDearborn, MIMemphis, TNSeattle, WAToronto, ON, CanadaLima, Peru

    Sao Paulo, Brazil*

    direct

    partner

    locations of 2007 research conducted in-home, in-store, in plant, or place of work

    Where we are

    Global Research

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    The role of design thinking in our clients organizations

    Here are some of the ways we apply Design Thinking principles in ourclients organizations:

    Creating Lighthouse Projects

    Bridging Divisions (Marketing & Operations, for instance)

    Facilitating Brand Understanding

    Encouraging Creativity (No Art Degree needed)

    Fostering Product and Service Innovation

    Developing radical new ideas

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    The big realization

    How we create is as important as what we create.

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    What is design thinking?

    Design Thinking is a strategic approach to solving business challengesthrough creative exploration. Its about generating new ideas based on a

    deep understanding of people, and bringing those ideas to life.

    Design Thinking is the interaction of different people with different

    viewpoints working with a proven and replicable problem-solving and

    idea-generating method.

    Design Thinking lets us create better things, not simply choose between

    existing things. It generates ideas that become the experiences and

    products we couldnt imagine living without.

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    How do we makeour toasters better,faster and lessexpensively?

    How do we make abetter toaster?

    What are all theways to toastbread?

    What are the attributesof toasted bread?

    Is there a better way toachieve theseattributes?

    Design ThinkingVoice of the CustomerTotal Quality

    Management

    Approach

    Customer expectations, strategic initiativeCompetitive pressure, costsavings

    Customer complains,process errors

    Motivations

    New service development process, innovation

    process

    Customer surveys, idea

    submission programs

    Quality auditsTools

    Step change increase in performanceIncrease service levels,

    efficiency or cost

    Fix obvious problemsResults

    InnovationImprovementRemediation

    Types of innovation

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    Tools

    Process

    Skills

    Mindset

    What makes for successful design thinking?

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    Design thinking mindset

    Acknowledge that we do not know the answer. Be open to completely newideas that are not even in the framework of our current thinking.

    Search for solutionsnot inwardly as experts, but through the lens of

    consumers and customers and constituents. Conduct our research as if we

    are anthropologists.

    Explore options by tapping a broad range of people with different skills,disciplines, and mindsets. Include people who understand well the constraints

    we have to work within, but also include people who do not see any constraints.

    Prototype and evaluate a range of ideas to learn, iterate and refine until it is

    right. Great ideas with small flaws fail. Details matter.

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    Design Thinking

    What is design thinking?

    Its a fluid but definable process involving several key components:

    PERSONALRealize each problem and the peoplethere to solve it has a unique context

    INTERGRATIVE

    Seeing the whole system and its manyconnections.

    INTERPRETIVE

    Creating the best way to frame theproblem and judge the possible solutions.

    COLLABORATIVE

    Working with people who sharesimilar and dissimilar experiences togenerate richer work.

    ABDUCTIVEStarts from a set of accepted factsand works back to their most likelyexplanations.

    EXPERIMENTAL

    Build prototypes. Pose hypotheses.Test them. Iterate. All to manage risk.risk.

    Rodger Martin, Rotman School of Management, University of Toronto

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    Conventional Thinking

    Logical

    Deductive reasoningInductive reasoningRequires proof to proceed

    Looks for precedents

    Quick to decideThere is right and wrongUncomfortable with ambiguity

    Wants results

    Design Thinking

    Intuitive

    Abductive reasoning

    Asks what if?Unconstrained by the past

    Holds multiple possibilitiesThere is always a better wayRelishes ambiguityWants meaning

    Conventional vs. Design Thinking

    Rodger Martin, Rotman School of Management, University of Toronto

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    Alignment EvaluationDiscover EnvisionAnalysis

    Sharing thesituation

    team building identifying

    stakeholders

    user research immersion observation interviews intercepts experimentation

    context research client competition brand technology trend exploration

    mapping sorting triangulating segmenting framing

    synthesis exploring envisioning creating

    evaluation consumer resonance data consistency design inspiration business analogy envisioning iteration

    Goal:

    Setting thechallenge

    Insight:

    Seeing somethingnew or differently

    IDEA:

    A well posedproblem

    Innovation:

    The IDEA made real

    Validation

    The IDEA proven

    The Continuum process

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    Alignment EvaluationDiscover EnvisionAnalysis

    Sharing thesituation

    team building identifying

    stakeholders

    user research immersion observation interviews intercepts experimentation

    context research client competition brand technology trend exploration

    mapping sorting triangulating segmenting framing

    synthesis exploring envisioning creating

    evaluation consumer resonance data consistency design inspiration business analogy envisioning iteration

    Goal:

    Setting thechallenge

    Insight:

    Seeing somethingnew or differently

    IDEA:

    A well posedproblem

    Innovation:

    The IDEA made real

    Validation

    The IDEA proven

    The Continuum process

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    How can we reduce

    enforcement contact?

    How do we encouragetaxpayers to file and

    pay on time?

    LettersAdvertising

    Phone CallsE-Mail

    Education

    Incentives

    Partnerships

    Events

    Reframing the problem

    Casting a wider net to broaden the possibilities

    IRAS project example

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    Alignment EvaluationDiscover EnvisionAnalysis

    Sharing thesituation

    team building identifying

    stakeholders

    user research immersion observation interviews intercepts experimentation

    context research client competition brand technology trend exploration

    mapping sorting triangulating segmenting framing

    synthesis exploring envisioning creating

    evaluation consumer resonance data consistency design inspiration business analogy envisioning iteration

    Goal:

    Setting thechallenge

    Insight:

    Seeing somethingnew or differently

    IDEA:

    A well posedproblem

    Innovation:

    The IDEA made real

    Validation

    The IDEA proven

    The Continuum process

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    Trend ResearchTrend ResearchTrend ResearchTrend Researchtrend explorationcultural analysis

    TechnologyTechnologyTechnologyTechnology

    benchmarkingcost analysis

    patent searches

    BrandBrandBrandBrandclient interviews

    channel interviewscommunications audits

    PeoplePeoplePeoplePeopleinterviews

    focus groupsobservation

    surveys

    IndustryIndustryIndustryIndustry

    client interviewschannel interviewsclient facility visitscompetitive audits

    industry reports

    Discovery

    There are many perspectives from which to consider a problem

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    A l i bl d l

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    IDEA

    Values

    Aspirations

    ExperienceFeatures

    Solutions

    Problem

    Analysis - problems and values

    V l ttit d & b h i

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    Values, attitudes, & behaviors

    Values (often unconscious, unarticulated): Drives what people reallywant

    The ideals, customs, institutions, etc., of a society toward which the people of the

    group have an affective regard.

    These values may be positive, as cleanliness, freedom, or education, or negative, as

    cruelty, crime, or blasphemy.

    Attitudes (often conscious, articulated): What people say they want

    Manner, disposition, feeling, position, etc., with regard to a person or thing; tendency

    or orientation.

    Behaviors (often unconscious, unaware): What people actually do Observable activity..

    The Continuum process

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    Alignment EvaluationDiscover EnvisionAnalysis

    Sharing thesituation

    team building identifying

    stakeholders

    user research immersion observation interviews intercepts experimentation

    context research client competition brand technology trend exploration

    mapping sorting triangulating segmenting framing

    synthesis exploring envisioning creating

    evaluation consumer resonance data consistency design inspiration business analogy envisioning iteration

    Goal:

    Setting thechallenge

    Insight:

    Seeing somethingnew or differently

    IDEA:

    A well posedproblem

    Innovation:

    The IDEA made real

    Validation

    The IDEA proven

    The Continuum process

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    Envisioning helps everyone see to potential of an idea

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    Envisioning helps everyone see to potential of an idea

    It allows people to grasp strategy in a conceptual way

    It communicates an idea, not a final concept

    Presents an idea in a malleable form rather than a brittle one

    An envisioned idea helps others express thoughts

    Team

    Clients

    Stakeholders

    People

    Envisioning shows how an idea works in real life

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    Envisioning shows how an idea works in real life

    Envisioning shows an idea in context by demonstrating at the entire consumerexperience at each touch point between the consumer and the experience

    It can express important details within the context of a larger idea

    Envisioning emphasizes the important parts of an idea

    Envisioning

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    consumerconsumermodelmodel

    envisioningenvisioning

    consumerconsumer

    modelmodel

    envisioningenvisioning

    consumerconsumer

    Envisioning

    It reminds us to assess our ideas as we go. It requires us to frame,position and present ideas as if they were real, even if they are not.

    Experiential modeling

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    Experiential modeling

    An experiential model is anything that is built or simulated for the purposes of explaining or

    learning something about the experience you are designing.

    Benefits of experiential modeling

    Allows you to experience idea in a low cost scenario

    Lowers risk & allows for failure Informs the process Helps build consensus in the organization

    Being right is defined by the process, not the result Behavior is not as predictable as you think Model early and often (Dont wait) Build to learn. Fail. Repeat.

    The Continuum Process

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    Alignment EvaluationDiscover EnvisionAnalysis

    Sharing thesituation

    team building identifying

    stakeholders

    user research immersion observation interviews intercepts experimentation

    context research client competition brand technology trend exploration

    mapping sorting triangulating segmenting framing

    synthesis exploring envisioning creating

    evaluation consumer resonance data consistency design inspiration business analogy envisioning iteration

    Goal:

    Setting thechallenge

    Insight:

    Seeing somethingnew or differently

    IDEA:

    A well posedproblem

    Innovation:

    The IDEA made real

    Validation

    The IDEA proven

    The Continuum Process

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    Evaluation

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    IDEA

    Evaluation

    Many evaluation methods simply askpeople how much they like an idea or

    how likely they are to buy/use

    Evaluation

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    IDEA

    Values

    Aspirations

    ExperienceFeatures

    Solutions

    Problem

    Instead, evaluation shouldmeasure how well an idea

    solves the problem

    Design Thinking in Practice / Our Toolkit

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    g g

    Some of our methods:

    Persona Building

    Observed Behavior

    Journey Mapping

    Envisioning Ideal Experiences

    Experiential Modeling

    How We Use Them

    Internally - To unify diverse teams, collaborate towards creative solutions

    Externally - To engage clients in the creative process and create alignment

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    MoM2s Project Room

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    j

    Persona Building

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    Persona Building / Overview

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    Personas are rich, multi-dimensional portraits of customers. We makethem life-size so that theyre hard to forget through the course of a

    project. Often based on existing customer segments and demographics,

    we use ethnographic research to give abstract statistics color and depth.

    Personas remind us that people are at the heart of any meaningful

    innovation, theyre the best source of inspiration, and the most important

    judge of an ideas value.

    Persona Building / Overview

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    A persona acts as a focus for the design Answers the key question for designing - who is this for?

    Demonstrates the emotional and functional needs of users through

    humanizing those needs

    Illustrates the objectives while creating a sounding board for potential

    solutions by creating empathy for the ultimate user

    As design options are created each one can be very rapidly tested

    A scenario is a walk through a design, from the point of view of a

    specific persona

    Would the persona understand the design?

    Does the design help the persona achieve their goals?

    Are there parts of the design (excise) which are not moving the

    persona towards their goals which might be removed?

    Persona Building / Basic Elements

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    Personal profile (age, sex, education, job, hobbies, family, socio-economic group, etc)

    Role (responsibilities, position in organization)

    Flavouring (Back-story, what sort of house they live in, how long

    theyve had their job, where their parents live, when they got

    married, where they went on their honeymoon, etc )

    Persona Building / Examples - Complete Picture

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    Persona Building / Examples - Central Idea

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    Persona Building / Examples - Affinities

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    Journey Mapping

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    Journey Mapping / Overview

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    A supply chain brings your product to customers.

    A journey map follows customers to your product.

    Journey Maps are tools for documenting and understanding

    peoples experiences; recording major events and minordetails. We use Journey Maps to identify key touchpoints

    that customers encounter as they become engaged with

    products or brands. Once you understand a customersjourney you can begin to shape and influence it.

    Journey Mapping Example / Lipstick Journey

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    Journey Mapping Example / Mental Health Journey

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    Journey Mapping Example / Diamond Buyer journey

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    MoM2s Strategic Planning Journey Map

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    Senior

    manage-ment,Directors

    CPD

    Review Preparation for SG Strategy Group Workplans Budget

    Allocation- Shareson thegaps andimprove-

    ment areas- Providessupport

    - Providesdirection andpotential topics forresearch and

    gathering of info- Gives guidanceand endorsementon the proposal forSG

    - Examine thecurrent plan &operatingenvironment

    - Participateactively indiscussions torefine/re-examinestrategies

    - Depts toreview plansin support ofstrategies of

    ministry- Presentplans forfundingsupport

    - Use thefundsallocated toachieve the

    workplansand attaingoodperformance

    - ConductAAR

    - Propose

    recommendations toenhancetheprocess

    - Conductresearch on keytopics throughenvironment scan,

    futuring networksand readinginternal papers

    - Formulate theproposal for SG

    - Set the broadcontext forstrategy review

    - Share theresearch

    - Facilitate anddrive discussionsto

    - Coordinateand facilitateworkplansessions

    - Recommendfundingsupport forstrategicprojects

    - Allocatebudgetaccording tostrategic

    priorities todriveperformance

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    Envisioning the Ideal Experience

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    Backcasting

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    Ideal

    time

    innov

    ation

    Leaping to the ideal versus stepping incrementally

    Elements of the Ideal Experience

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    Things to consider when envisioning your ideal experience: Your Core Product or Service Offering

    Your Differentiated Brand Positioning

    Your Customers Ideal State - How do you want them to feel?

    The Ideal Journey - How do you want them to come into contact with your

    brand?

    The Experience Analogy - Whats the story that will knit together your

    experience, the story your customer will tell?

    MoM1: One-stop service centre analogy

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    Analogy: Private banking Personalised

    One-to-one

    Customised

    Account manager

    Envisioning

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    InformationDesign

    Composing wordsand images in such

    order as tocommunicatemultiple, sometimesdisparate articles ofinformation in one,single, layeredspace. Posters are

    often a deliverable.

    Cartooning

    Creatingendearing,imaginedsnapshots orscenarios thatreveal theemotional contentof our insights andobservations.Striking universal

    resonance withpeople.

    Video /Animation

    Building narratives inmotion to illuminate

    a moment, describea feeling or capturean insight.Assembling clips tocommunicate aspecific aspect of ourresearch to our

    clients.

    CollageImaging

    Associatevisualization helps

    describe / resolvemulti-faceteddesign directions.Abstracting theconnectionsbetween images,words, sketches,

    textures.

    Storyboarding

    Creative mappingof usage scenariosone step at a time.Enables analysis ofspecific sequencesin action. Quicklyshows system ofusage withproducts.

    1.

    2.

    3.

    4.

    Envisioning is communicating, in a very obvious and compelling way, what cant be easily described or even imagined. Weenvision so people can fully experience an idea, whether it is visually, audibly, tactilely or olfactory.

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    Experiential Modeling / Overview

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    Experiential Modeling does not require an astrophysicist anda room full of super computers. All it takes is a team of

    flexible thinkers, some basic office supplies and a sense of

    play. Its about bringing ideas to life by any meansnecessary: creating rough objects, storyboarding out a

    communication on post-its, acting out a service experience.

    The purpose is to make ideas feel tangible so that the

    people can experience them, evaluate them and and quickly

    evolve them. Experiential Modeling is a low-cost, low-risk

    way to foster innovation within an organization.

    Enactment

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    Rapid Prototypes

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    MoM1 One Stop Service Centre Model

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    How we create is as important as what we create.

    D i Thi ki i i h l i b i h ll h h

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    Design Thinking is a strategic approach to solving business challenges through

    creative exploration based on a deep understanding of people

    Being open to completely new ideas that are not even in the framework of

    our current thinking

    Searching for solution through the lens of consumers and customers andconstituents

    Collaborating with a broad range of people with different skills, disciplines,

    and mindsets

    Modeling ideas to learn, iterate and refine until it is right

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    Conventional vs. Design Thinking

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    Conventional Thinking

    LogicalDeductive reasoning

    Inductive reasoningRequires proof to proceed

    Looks for precedentsQuick to decide

    There is right and wrongUncomfortable with ambiguity

    Wants results

    Design Thinking

    IntuitiveAbductive reasoning

    Asks what if?Unconstrained by the pastHolds multiple possibilities

    There is always a better wayRelishes ambiguityWants meaning

    Rodger Martin, Rotman School of Management, University of Toronto

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    Date: 23 October 2009

    BOSTON . LOS ANGELES . MILAN . SEOUL

    thank you

    Dan Buchner [email protected] McCarthy [email protected]