design with ideo: designing sustainable human centered business models
DESCRIPTION
David Aycan, Design Director IDEO & Joe Gerber, Business Designer IDEOTRANSCRIPT
Design + Business Design
(in 20 minutes + some work)
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What is Design?
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It’s making things look beautiful
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But that’s just a small part of it
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It’s the process of defining holistic and considered solutions
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...so we can make lives better and more full of
delight...
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...and sustain these solutions with robust
business models
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Human
Technical
Business
HolisticIt creates solutions that are inspired by,
and work from 3 important perspectives to create value for customers and
businesses.
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First, a quick intro to IDEO
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researcher
interaction designer
web developer
architect
brand strategist
communication designer
industrial designer
business designer
material scientist
Our People....
We’re a multi-disciplinary community, comprised of ‘T’-shaped
individuals.
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Our Clients...
We work across industries, finding value in cross-pollination and
analogous inspiration.
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Healthy Living
Rethinking the Pharmacy with Walgreens. Redefining and expanding the role of the
pharmacist.
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Rethinking Local Media
Creating an authentic and personal connection with influential locals, grounded in a sustainable
business model.
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The Real Challenge Comes in Bringing the Perspectives Together
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STRATEGIZEBUILD
Design Driven StrategyStrategy informs what you should build; prototypes help assess your
strategic hypothesis.
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Meaning through Principles
Take time to digest your feedback and inspiration. Distill it in to a point-of-view.
Develop a collective vision with your team.
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Explore Options
Good designers have a point of view, but recognize the need to explore alternatives to reach an optimal
solution, and get good feedback
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Brand
Shifts Focus
Deep dive without forgetting the whole.
Offer / Experience
BusinessOrganization
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Keep it Rough EarlyYou can test a lot of early hypotheses in 30 minutes to 1 day. Try to invest as little as possible, until you
can’t avoid it, and then, you should be certain about your core value proposition.
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Focus on Business RisksRemember that the business model is the unit of
design. Back up and look at the big picture to identify the main areas of uncertainty and focus
where it is most essential.
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Collaborate
Immerse in the challenge together. As teams expand, find ways to communicate and align
on a common vision.
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Start Early and WrongGet the assumptions out early through concrete
representations of the future business. These can be models, prototypes, or sketches
1+32
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Authentic
Find ways that your company can align internally and externally to garner the passion of employees, stakeholders, and customer alike
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Business Model Design
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The business model is the unit
of design
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Offering DesignWhat tangible, value creating
experiences should we create for our customers?
COST
SPARTNERSCAPABILITIES
CHA-NNELPRICING MODEL
VALU
EPR
OP.
CUS
TOM
ERS
COMPETITIVESTRATEGY
GROWTHSTRATEGY
What do they need and want?
What do we promise our customers?
What unique and differentiating value can we provide for the long term?
Who are our customers?How do we pave the way for
future offerings?
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Operations DesignHow do we organize
to create and deliver value to our customers?
How do we leverage what we’re good at?
PARTNERSCAPABILITIES
CHA-NNEL
Who would complement our
capabilities?
What new capabilities will keep us relevant?
Where can people access our product?
How does it get there?
What is our process for delivering our products and service?
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Economics DesignHow do we create
more value than it costs for us to create it?
COST
SPARTNERSCAPABILITIES
CHA-NNELPRICING MODEL
What do customers attach value to?
What does it cost to build, distribute and service our offering?
What are they willing to pay?
How much risk should we take on?
How do we test our ideas without breaking the bank?
Where do we need to invest for our future?
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Marketing DesignHow do we
communicate with customers?
COST
SPARTNERSCAPABILITIES
CHA-NNELPRICING MODEL
VALU
EPR
OP.
CUS
TOM
ERS
COMPETITIVESTRATEGY
GROWTHSTRATEGY
How do we get our message across to customers
Who will be most receptive to our offer?
What behaviors do we want to incentivize?
What does our price say about our offer?
How can we harness the brand value of our retailers?
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Make it Elegant!
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Make it Elegant!
The business model canvas is not a fill-in-the blanks and you’re done.
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Elegant Business Model DesignHow do we
communicate with customers?
COST
SPARTNERSCAPABILITIES
CHA-NNELPRICING MODEL
VALU
EPR
OP.
CUS
TOM
ERS
COMPETITIVESTRATEGY
GROWTHSTRATEGY
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ACTIVITIES
Define Customer and Value Proposition (10 min.)
How do you deliver this value (5-10min)
Risk identification and experiment design (15 min.)
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Define Customer & Value Prop
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Keep in Mind
Is your customer and your end-user the same person?
What is the context of the need (when, where, why)?
What problem are you solving?
Why will they choose you?
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Operationalizing Value Creation
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Keep in Mind
How will you deliver your value prop?
What 1 or 2 things will do better than anyone else?
What does that experience require the 1st, 2nd, nth time?
Build, buy or partner?
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Identify Risks & Design Experiment
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Keep in MindWhat are you sure you know vs think you
know?
What is the impact of getting your assumptions wrong?
How can you maximize learning with minimal investment of time and money?
How can you best replicate the context of where real-life decisions happen?
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Sharing BackWhat was difficult? What was easy?
What could you imagine using at your venture?
Any questions for us?
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A Few TakeawaysKeep in touch with your market
(even once you’ve established product market fit)
Explore options
Encourage empathy and test your assumptions
Always have a solid business model hypothesis
Keep it simple. Get the direction right first, then the details
The business design canvas is not a fill-in form
Design with elegance
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Thank You
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