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
1
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
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