seven things

2006 AIGAGAIN CONFERENCE

DESIGN MEANS BUSINESS

Really Busy

Seven Lessons

Brock Ray

1) Breaking Down the Silos

Moira Cullen, Design Director, Coca-Cola North America

Brand vs. Design

Brand vs. Design

Marketing

Brand vs. Design

Marketing Production

Brand vs. Design

Marketing Production

Intangible

Brand vs. Design

Marketing Production

Intangible Tangible

Brand vs. Design

Marketing Production

Intangible Tangible

Value

Brand vs. Design

Marketing Production

Intangible Tangible

Value Cost

Waste of Time and Money

Myth of the Rational Agent

70%Emotional

Move Tangibles to Intangibles

Move Tangibles to Intangibles

Create Engagements

4 “P”s

4 “P”s

Product

4 “P”s

Product

Price

4 “P”s

Product

Price

Position

4 “P”s

Product

Price

Position

Place

4 “P”s

Product

Price

Position

Place

Commodities

2 “E”s

2 “E”s

Emotion

2 “E”s

Emotion

Engagement

2 “E”s

Emotion

Engagement

Differentiation

How Do We Do It?

How Do We Do It?

Stamina & Perseverance

How Do We Do It?

Stamina & Perseverance

Personal Relationships

How Do We Do It?

Stamina & Perseverance

Personal Relationships

Understand Other Disciplines

“Design is the communication between brand partners and shareholders to define the brand.”

Moira Cullen

2) All Look, No Feel

Michael Hendrix, Tricycle, Inc.Bo Barber, Nood Floorcovering

1 Carpet Sample = 1 Quart of Oil

Environmental Report Card August 2004 – July 2005

SIM from Tricycle™ Alternative Samples Shipped

Gallons of Oil Saved

Pounds of Carpet Not Landfilled

Saved By Manufacturers

Environmental Report Card August 2004 – July 2005

SIM from Tricycle™ Alternative Samples Shipped

Gallons of Oil Saved

Pounds of Carpet Not Landfilled

Saved By Manufacturers

34,443

Environmental Report Card August 2004 – July 2005

SIM from Tricycle™ Alternative Samples Shipped

Gallons of Oil Saved

Pounds of Carpet Not Landfilled

Saved By Manufacturers

34,443

8,611

Environmental Report Card August 2004 – July 2005

SIM from Tricycle™ Alternative Samples Shipped

Gallons of Oil Saved

Pounds of Carpet Not Landfilled

Saved By Manufacturers

34,443

8,611

51,665

Environmental Report Card August 2004 – July 2005

SIM from Tricycle™ Alternative Samples Shipped

Gallons of Oil Saved

Pounds of Carpet Not Landfilled

Saved By Manufacturers

34,443

8,611

51,665

$4,729,825

Nood FloorCovering Green Means Green

Old School

Shoppers vs. Designers

New Is Cool

Dematerialization and Mass Customization

How It Works

“Design will fail if it’s only lipstick on a pig.”

Michael Hendrix

“If a 73-year old gets [Nood], it’s wrong.”

Bo Barber

3) Execute the Obvious to Rise Above the Competition

Scott Williams, Starwood Hotels

Complicated Research Process

Complicated Research Process

1. Asked Customers What They Want

Complicated Research Process

1. Asked Customers What They Want

2. Listened

Complicated Research Process

1. Asked Customers What They Want

2. Listened

3. Did It

Heavenly Bed

Hard To See The Obvious

The Problem With Focus Groups

Focus groups can be used to tell the CEO that what you think is right

Ethnography

[eth-'näg-r&-fE]the scientific description of the customs of individual peoples and cultures

What Marketing Ethnographers Learn

What Marketing Ethnographers Learn

How the product is used

What Marketing Ethnographers Learn

How the product is used

How the product is abused

What Marketing Ethnographers Learn

How the product is used

How the product is abused

What are the user’s expectations

“Buyers are liars!”

Scott Williams

4) The Business Case for Design

Harry Rich, Design Council, U.K.

Trust me. I’m a designer.

Trust me. I’m a designer.

Business Performance

Design Council, U.K.

200%Share Price Outperformance

Don’t Need Exceptional Results

I’m a professional who gets results, so trust me.

“Without design, companies end up competing on price alone, and that is a path to be avoided as it ultimately devalues your product or service.”

Harry Rich

5) Designing in Hostile Territory

Roger Martin, Joseph L. Rotman School of Management, University of Toronto

The Fundamental Tension

Reliability

Identical Or Consistent Results

Validity

Subjective But Accurate Results

Reliability vs. Validity

Reliability vs. Validity

Enterprise resource planning

Reliability vs. Validity

Enterprise resource planning A robust strategy

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM Design excellence

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM Design excellence

Knowledge management systems

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM Design excellence

Knowledge management systems Creativity

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM Design excellence

Knowledge management systems

Incentive compensation

Creativity

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM Design excellence

Knowledge management systems

Incentive compensation

Creativity

Jobs that have meaning

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM Design excellence

Knowledge management systems

Incentive compensation

Meeting analysts’ quarterly targets

Creativity

Jobs that have meaning

Reliability vs. Validity

Enterprise resource planning A robust strategy

Customer relationship management Customer intimacy

Six Sigma and TQM Design excellence

Knowledge management systems

Incentive compensation

Meeting analysts’ quarterly targets

Creativity

Jobs that have meaning

A successful company

Five Tools for Designing in Hostile Territory

1) Take Design Unfriendliness as a Design Challenge

2) Empathize with the Unfriendly Elements

3) Speak the Language of Reliability

4) Use Analogies and Stories

5) Bite Off as Little a Piece as Possible to Generate Proof

“It's not that corporations don't like or want great design. It's just that when a validity-oriented design comes to an important corporate decision gate, the reliability-oriented question inevitably gets asked: ‘But can we prove this will work?’ Or, ‘How can we be sure this will work?’”

Roger Martin

6) Exporting Fast Food to China

LiAnne Yu, Cheskin

Pollo Campero

What Pollo Campero Found

1) Chinese Love Pollo Campero Chicken

What Pollo Campero Found

2) Don’t Know Anything About Guatemala

1) Chinese Love Pollo Campero Chicken

What Pollo Campero Found

What Pollo Campero Found

Proposed Position

1) Cheap Fried Chicken

Proposed Position

1) Cheap Fried Chicken

2) Eliminate Guatemalan Visuals

Proposed Position

Stop

Cultural Immersion

Ethnographers Who Speak Both Spanish and Mandarin

Cultural Immersion

Explore Both Cultures to Identify Similarities

Ethnographers Who Speak Both Spanish and Mandarin

Cultural Immersion

What Cheskin Found

1) U.S. Fast Food No Longer Aspirational

What Cheskin Found

1) U.S. Fast Food No Longer Aspirational

2) Chinese Mourn Loss of Traditional Lifestyle

What Cheskin Found

Revised Position

1) Casual Dining

Revised Position

2) Leverage Latin American Heritage

1) Casual Dining

Revised Position

“While we agree that people can’t always directly describe the product, service or brand they want, they can describe the functions, economics, feelings and meanings they value. They can show you how they live and can point out where their lives could be improved or enriched.”

LiAnne Yu

7) The SHIFT Report™

Kierstin De West, ci: Conscientious Innovation

ci: Conscientious Innovation

The SHIFT Report™

Time

Price

Knowledge

Pressure

Key Findings

1) Consumers Want To Be Told How To Live Sustainably

Key Findings

1) Consumers Want To Be Told How To Live Sustainably

2) Consumers Want Products That Will Help Them Do That

Key Findings

“Brands that understand this consumer and authentically manifest these values are poised to take advantage of an increasingly discerning marketplace.”

Kierstin De West

End