design thinking innovation cosorio
TRANSCRIPT
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DesignThinkingbasedInnovation:howtodoit,andhowtoteachit?
CarlosA.Osorio,PhD([email protected])AdolfoIbanezSchoolofManagement
Version1.0.August8th,2009.
Abstract
Asinnovationbecomesthecornerstonefornewproblemsolvingandcreationofprivateandpublicvalue,thispaperexplorestwoquestions:(i)whatmethodsandroutineshelpteamstoinnovatebetterandfaster?and,iftherearesuchmethods,(ii)cantheybetaughtandlearned?Ifocusonthetheoryconvergingfromdesignthinking,newproductdevelopment,andsocialsciences,andonexperimentscarriedoutwithundergraduateandgraduatestudentsoncoursesdesignedtotestthehypothesesthatinnovationcanbetaughttosolvecomplexbusinessandsocialproblems.Findingshaveallowedcreatingframeworksandcoursestructuresthathelpteamstocreate,developandenhancenewsetsofskillsbyfocusingthenaturalchaosofinnovationintosolvingcomplexproblems.
Keywords:designthinking,innovation,sustainablesolutions,challenges,learning,risk,uncertainty,ambiguity,ignorance.
1. IntroductionAsinnovationgainsrelevanceintheworldassourceofvaluecreation,thereisincreasingneedtounderstanditbetterinordertobettermanageitandcreateit.Forthepurposeofthispaperitisusefultodifferentiatebetweeninnovationsasaresultandasaprocess,andtointroduceworkingdefinitions.Idefineinnovationasaresultasanynew,ornontrivialchangein,product,service,process,orbusinessmodel,etc.,thatcreatesvalueforamarketandpaybackforanorganization.Ialsodefineinnovationasprocessasanadaptiveandstructureddevelopmentprocessthat,whileusedconsistently,allowsateamorcompanytocreateinnovationsinaconsistentandpredictablemanner(Osorio,2007).
Mostearlyresearchoninnovationfocusedoninnovationsasresults,howtomanagetheirevolution,theircompetitiveeffects,andstrategydesign.Manyscholarshavefocusedonthestudyofinnovationfromtheperspectiveoftheconceptionoftechnologicalchange(Arthur,1989;Dosi,1982;Kuhn,1970;Rosenberg,1969;Sterman&Wittenberg,1999;Tushman&Anderson,1986),lifecycleofnewtechnologies,theemergenceofdominantdesignsandsurvivaloffirms(Abernathy&Utterback,1978;Anderson&Tushman,1990;Huckman,2003;Snow,2004;Utterback,1994).Otherstudieshavefocusedonindustrydynamicsasresponsetoinnovation(Levin&Reiss,1984;Nelson&Winter,1982;Schumpeter,1934,1943),andontheimpactofinnovationsinmarketstructure(Bresnahan&Trajtenberg,1995;Utterback&Suarez,1991).
Thestudyoftechnologystrategyhasalsofocusedonrelevantinnovationthemessuchasmodularity(Baldwin&Clark,2000;Ethiraj&Levinthal,2004;Fleming&Sorenson,2001),andtherelevanceofstandardsandnetworkexternalities(David,1985;Shapiro&Varian,1999),andtheeffectofmarketsforknow‐howandlicensingonmarketintegration(Arora,Fosfuri,&Gambardella,2001;Pisano,1990;Teece,1981,1986).
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Fromtheperspectiveoforganizationsciences,somehavestudiedthereasonsforfirmfailureinthepresenceoftechnologicaldiscontinuitiesandinnovationassourcesofcreativedestruction(Abernathy&Clark,1985;ClaytonChristensen&Rosenbloom,1995;Clark,1987;Henderson&Clark,1990;Rosenbloom&Christensen,1994;Tushman&Anderson,1986).Othershavefocusedonthecapacitiesoffirmstoabsorbnewknowledgeandpractices(Cohen&Levinthal,1990),theirabilitytocontinuouslylearnandadaptindynamicways(Abernathy&Wayne,1974;Levinthal&March,1993;March,1991;Pisano,1996;Tripsas&Gavetti,2000)andontherelevanceofdynamiccapabilities(Kogut&Zander,1992;Stuart&Podolny,1996;Teece,Pisano,&Shuen,1997;Tripsas,1997).
Insummary,thestudyabouttherelevanceandeffectsofinnovationsisabundant,unliketheresearchabouttheprocesses,methodsandroutinesthathelpfirmsandteamstoinnovatebetterandfaster.Paradoxically,whileitisveryrelevanttounderstandhowtomanageinnovationsandtheireffects,practitionersintheprivateandpublicsectorareincreasinglyaskingtoknowmoreaboutthelatter:howtocreatethem.
Thispaperisanefforttohelpclosingthisgapmotivatedbytwoquestions.First,whatarethemethods,processesandroutinesthathelpfirmsandteamstoinnovatebetterandfasterinconsistentandsystematicways?Second,iftherearesuchmethodsandroutines,howcantheybetaughtand/orlearned?
Inthenextsection,Ipresentareviewoftheliteratureaboutinnovationprocessesfromdifferentperspectives.Basedonthereviewoftheliterature,inSection3,Ipresentageneralmethodforinnovationbasedonmyresearch.InSection4Iillustratethegeneralmodulesandoutcomesofacoursedesignedtoanswerthequestionofhow(andwhether)onecanteachpeopletoinnovate.Here,whenIsayteach,Imeanitinthesenseofenablinglearning,ratherthanimpartinglecturesorcommunicatinginformation.
2. LiteratureReviewonInnovationProcessesInmanagementsciences,researchaboutinnovationprocessesisrootedonthemanagementofproductandprocessdevelopment.RobertCooperproposedaninfluentialframework,commonlyknownastheStage‐Gateprocessformanagingnewproductdevelopmentprocesses(Cooper,1986).Theframeworkwasbasedonthestudyofmultipleprojectsandfirms,whichidentifiedaseriesofproductdevelopmentactivitiesthatrangedfrominitialideascreeningtonewproductlaunch(thestages)eachfollowedbyadecisionmakingpointofgo‐nogo(thegates).Eachgaterepresentsascreeningreviewafteradifferentstepintheprocess.TheProductDevelopmentFunnelcametocomplementthisapproach(Wheelwright&Clark,1992b).Theauthorsproposedanapproachtoidentifyandmanageinnovationportfolios.Atthebeginning,thefunnelacceptsmanyoptionsforideas,technologiesandmanufacturingprocesses,whicharereducedthroughphasesofconceptgeneration,productdesign,prototypingandtesting,pilotingandmanufacturingandlaunch.
Theseapproachesleadtoadifferencebetweenthemanagementofaninnovationportfolio,andthemanagementoftheprocessofcreatinganinnovation.Whiletheformerisimportant,herewefocusonthelatter.However,thesearenottotallydistinguishableaswecanidentify(i)aplanningphase,sometimescalledPhase0(Ulrich&Eppinger,2004),whichincludesatleast20
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differentdecisions(Krishnan&Ulrich,2001),and(ii)phasesanddecisionsmadeduringtheprocessofdevelopment.Usually,thesephasesinclude–atleast‐conceptdevelopment,system‐leveldesign,detaileddesign,testingandrefinement,andproductionramp‐up(Ulrich&Eppinger,2004).Otherscholarshaveproposedvariationsthatfocusonservices(Thomke,2002,2003b),softwaredevelopment(Iansiti&MacCormack,1997),andnewdrugdiscovery(Bonabeau,Bodick,&Armstrong,2008),amongothers.Approacheslikethesearefocusedinhelpingteamstomanagerisk,uncertaintyandambiguityacrossprojects(i.e.withinaportfolio)andwithinprojects.Here,wewillfocusonthelatter.
Uncertaintyisagoodwordininnovation(Iansiti,1995;MacCormack,2005,2006;MacCormack&Verganti,2003;Thomke&Reinersten,1998),becauseitcreatesopportunitiesforfirmswhentheyaretoaddflexibilitytotheirprocesses.Uncertainty,however,hasmanysources:market,technology,platform,etc.AccordingtoMacCormack,asuncertaintyincreasesthedifferenceinproductqualityalsoincreases,allowingforgreaterdifferentiationanddifferencesinperformance.
Wecouldaddriskandambiguitytocreatealistofusefulconceptstomanageduringtheinnovationprocess:themoreonecouldamplifyriskandambiguityinaparticularsetting,itwouldbelesslikelytohavemanyfirmsproposingsimilarconcepts.Asaprocess,innovationhasalsobeendefinedasasearchforinformation(Fleming,2001;Fleming&Sorenson,2004;MacCormack,2006).Thus,ignorancecanalsobeaddedtothelistalsoagoodword,becausewecandefineitaseverythingthatcouldbeknowninordertosolveaproblemthemostoptimalway.Ateamsignoranceincludes(i)alltheteamknowsitdoesnotknow,butmostimportantly,(ii)alltheteamdoesnotknowitdoesnotknow,and(iii)allitdoesnotknowitknows.Thus,aninnovationprocesscanbeunderstoodasalearningprocessforsearchingaboutwhatateamdoesnotknowforfindingthebestpossiblesolutiontoaproblem(Beckman&Barry,2007;Owen,1998).
Whilethetendencyofmanyteamsistryingtofigureoutearlywhatcouldwork,researchshowstheoptimalpathistolearnwhatmightnotworkintheearlieststagesofaproject,inordertodiscardthembyprototypingandtestingrounds,andthusdiscoveringwhatcould(Osorio,2009).Thisisdonethroughafront‐loadingproblemsolvingapproach(Thomke&Fujimoto,2000).
This,however,requiresmethodsandcapabilitiesnoteasilyfoundinmanagement,butfoundontheverynatureofdesignthinking.Betteryet,itrequiresbeingcapabletotakea“creativeleap”,whichcanresultfromtrainingandlearningtoenhanceopennessandwillingnesstotakethatleap(D.Kelley&Hartfield,1996).Moreover,astheauthorsstated,“thereisadifferencebetweenproblemsolvingand…creatingbeyondwhattheproblemcallsfor”.Vergantiexplainsthisbydesign‐driveninnovationasaprocessthatcanbeinexhaustibleinallowingcompaniestocreatenewproducts(Verganti,2006).
Thisisbasedonaspecialattitudetowardsproblemsolvingthatmakedesigners(i)lookattheworldbeyondtheproblemandpatentneedsfrommultipleperspectives,(ii)thinkbeyondwhatisreasonableaslimitsoftheproblem,(iii)assumethereisalwaysabettersolutionthanthestatusquo,(iv)exploreandexperimentconstantly,and(v)workalongandwithinanotherdisciplines(Brown,2008).Furthermore,asexplainedbyBrown(2008),designthinkingisnot
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onlyfocusedonachievingfunctionalityonfulfillinguserneeds,butalsohavinganemotionaleffect.Inotherwords,designthinking‐basedinnovationfocusesintransformingthecurrentuserexperienceintothebestpossibleuserexperience(Beckman&Barry,2007;Buxton,2007;Fulton‐Suri,2003).
Thisrequiresfocusingtheinnovationprocessintothechallengeathandbytakingahuman‐centeredapproach(Brown,2008),experimentingasearly,fastandcheapaspossible(Brown,2008;Osorio,2007;Owen,1998;Thomke,2001,2003a),andlearningfastfromoutsidersandworkingalongwithotherdisciplines(Brown,2008;Owen,1998),amongotherthings.Whenallthisisdonetroughiterativeprocessesofanalysisandsynthesis(Buxton,2007;Laseau,1980;Owen,1998)andabstractandconcrete(Beckman&Barry,2007;Buxton,2007).
Thiscanbeachievedthroughadesignthinking–basedprocessthatgoesiterativelyfromexplorationanddiscoverytoalternativegeneration,thentosolutiondevelopment,andfinallytolaunchandexploitation(Osorio,2007),whichisbasedontheworkofseveralauthors(Beckman&Barry,2007;Fulton‐Suri,2003;T.Kelley&Littman,2001;Ulrich&Eppinger,2004;Wheelwright&Clark,1992a)andcompaniessuchasIDEO,Frog,Continuum,BankofAmerica,Google,Procter&Gamble,Apple,amongothers.
Unlikeatraditionalstage‐gateproductdevelopmentprocess,theultimategoalofadesignthinking‐basedprocessisnotorientedtocreatea“product”or“service”,butapotentialspaceforuserexperiencesthatisenabledbyaproductorservice(Buxton,2007;Osorio,2007).Here,theproductorserviceisthedoortoaspaceofpotentialuserexperiencesthat,accordingtoMacCormack(2008),isachievedbyiteratingwithinandthroughdesignspaces.
Learningthroughexperimentationiskeyforsuccessfullyiteratingthroughdesignspaces(Fulton‐Suri,2003;T.Kelley,2001;Thomke,1998,2001,2003a;Tohidi,Buxton,Baecker,&Sellen,2006).Summarizingtheviewfromtheseauthors,andconsideringearlyresultsonthedifferencesbetweensuccessfulandunsuccessfuldevelopmentprojects(Osorio,2009),onecansaythatlearningthroughexperimentationisachievedatitsbestwhenisdonethroughprototypingandtestingcycles,whicharefollowedbyenhancedlearningprocesses.Thiscontinuesuntilthepointinwhichateamfindsanewconceptthatisimplemented,thenlaunchedandexploited(Andrew&Sirkin,2006).
Basedonthisreview,nextsectionpresentsageneralmodelfordesignthinking‐basedinnovation.
3. DesignThinking‐basedInnovationFollowingfromtheprevioussection,designthinking‐basedinnovationhappensinaspacedesignthatiterates(i)betweenanalysisandsynthesis(creatingalternativesideasandchoosingfromthesealternatives),atthesametimethatiterates(ii)betweenabstractandconcrete(fromaconcreteproblem,toabstractthinkingandlearningabouthowtosolveitthroughafinalconcretesolutionthatisfinallyimplemented).
HereIpresentageneralmodelofinnovationprocessdevelopedthroughmyresearchoverthelasttwoyearsthatisbasedoncombiningdesignthinkingwithtraditionalproductdevelopment
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processes(Osorio,2007).Themodelwasdesignedtobeagnosticofwhetherateamisdevelopinganewproduct,service,ordesigninganewprocess.
Theprocessstartswiththedefinitionofaninnovationchallengefromaproblem,ideaorbusinessopportunity.Then,themodelhasfourphases,eachfocusinginadifferentobjectiveforthedevelopmentprocess:(i)learninganddiscovery,(ii)alternativegeneration,(iii)system‐levelpre‐launchdevelopment,(iv)launchandexploitation(SeeFigure1).
Figure1:GeneralModelofInnovationProcess
Source:theauthor
3.1.DefiningtheInnovationChallenge
AsresultofmyresearchoninnovationwithteamsandcompaniesIhavefoundthat,regardlessthenation,industryorcompany,peoplegivetoomuchcredittoideasassourcesofinnovation.Manycompaniesfocusoncreatingandstructuringideafunnels,theyscanhundredsofideasfornewproducts,servicesandprocesses,startdevelopingsome,andimplementafew.However,therearemanyproblemswiththisapproach:
1. Anideacanbeunderstoodassomeone’sconceptualizationforthemostvaluableandpromisingsolutiontoaworthyproblem.However,regardlessofhowintelligentoraccomplishedheorshemightbe,theprobabilityforhisorherideatobethebestsolutiontothatproblemisverylow(insomecaseslowerthan0.01%).
2. Startinganinnovationprojectfromanideacaneasilyleadateamtoiteratearoundthat“original”idea,whichleadstoanchoringthedevelopmenteffortsaroundtheoriginal
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idea1.Someexamplesofdisastrousresultsfrom“technicallyoptimumideas”aretheIridiumProject(implementedbyMotorola)andofTransantiago,thePublicTransportationSystemoftheCityofSantiago,(CHILE).Anchoringleadpeopletofocustoomucharoundthe“original”idea,andriskingnotconsideringorexploringsuperioralternatives.
3. Asresult,developmentteamsthatstartdevelopingeffortsfromanideaeasilyfallinlovewiththeidea,andlosecriticalperspective.
Insummary,whiletheproblemunderlyingtheideamightbeworthy,andfindingthebestpossiblesolutiontothatproblemmightbehighlyrewardedbythemarket,theoriginalideamightnotnecessarilybethebest.Theideaapproachmightexplain,tosomeextent,thelargepercentageofnewproductsandservicesthatfailduringthesixmonthsfollowinglaunch(Zaltman,2003).
Severalscholarshavefoundthatsourcesofinnovationsareworthyproblemsneedingbettersolutions,newregulations,obstacles,orsolutionsnotworkingsufficientlywellenough(ClaytonChristensen,2000;C.Christensen,Scott,&Roth,2004;Sull,Ruelas‐Gossi,&Escobari,2003;ErikvonHippel,1988).Basedonthis,andonmyresearchwithfirmsanddevelopmentteams,Ihavefoundthatabetterapproachistodefinetheinnovationchallengesfromproblems,obstacles,regulations,opportunitiesandideas.Here,ideasaretakenfromadifferentperspective:theyareconsideredtoevaluatethemeritsoftheproblemorobstacletheyaimtosolve,ortheopportunityorregulationtheyaimtoface.Theidea,onandinitself,haslittlevalueatthispoint.
Eachproblem,regulation,obstacleoropportunitymighthaveatleasttwodimensions:(i)valuetoamarketand(ii)urgencyofimplementation.Thusfirmsscantheirenvironmentforinformationabouthowmuchvaluecouldbecreatedbysolvingtheproblemandobstacle,facingtheregulation,andtakingadvantageoftheopportunityinthebestpossibleway.Theycanalsoassesstheurgencyforaction.ThisallowscreatinganInnovationChallengePortfolio(ICP)withinanorganization.
Fromeachproblem,obstacle,regulationandopportunity,firmscandraftpreliminaryinnovationchallenges.Table1illustratesthispointbyshowingdifferentinnovationchallengesdefinedfromvarioussourcesofinnovationfordifferenttypesoffirms.Ihavefoundthatinnovationchallengesfocustheattentionofdevelopmentteamsonhowtofindthebestpossiblesolutiontoeachand,insteadoffallinginlovewith“original”ideas,teams(i)fallinlovewithfindingthebestpossiblesolutiontotheproblem,(ii)arenotconstrainedbyanchoringintoanyonespecificsolutionex‐ante,and(iii)developsuperiorsolutionsascomparedtoscenarioswherethechallengeisbasedonan“original”idea.
1Anchoringisamongthemostcommondecision‐makingtraps.ForexamplesandmoredetailedexplanationseeHammond,KeeneyandRaifa(1998).
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Table1:InnovationChallengesforDifferentFirms
SourceofInnovation(problem,obstacle,regulation,opportunity)
InnovationChallenge TypeofFirm
Lackofpenetrationofamajorretailcompanyinthelowermarketsegmentsofthepopulation
HowtoimprovethequalityoflifeofpeopleinsegmentsD&Ewithaconsumerexperiencethatisbothprofitableandsustainabletothefirm?
Retailcompany
Increaseinthefinancialcostoffinesbydelaysinfillingoilrequestsbyaircargofreightersatamajorinternationalairport
Howtodecreasetheaveragedelaytoserveanairfreightcargofrom35tonomorethan5minutes,withoutaffectingtheaveragetimetoserveapassengerairliner?
Oilcompanyservingallpassengerandairfreightfirmsinaninternationalairport
Lossofaudiencebyamajorbroadcastingcompanyinthesegmentofpeoplebetween15and24yearsold
Howtobecometheleaderinaudio‐visualandmediacontentusingallpossibletechnologiesandplatformsavailable?
Majorbroadcastingcompany
IntensecompetitioninmobileInternetaccessafterderegulation
Howtobecomethenation‐wideleaderinmobileinternetaccess?
Majortelecommunicationscompany
Asresult,insteadofhavingideafunnels,firmscreateICP.Then,eachinnovationchallengehasitsowndevelopmentprocess,depictedinFigure1,whichleadstoafunnelthatisspecifictoeachchallenge.Thisfunnelstartswithachallenge,thenisfilledtocreateaSpaceofPossibleSolutions(SPS)andthen,rapidly,synthesizedintoaSpaceofFeasibleSolutions(SFS).TheSFSisasubsetoftheSPS,whichcontainsagroupofideasandalternativesthatareconsideredamongthebestforsolvingthechallenge.Then,throughiterativephasesofanalysisandsynthesis,theteamgoesalongthefunneldiscardinginferioralternatives,andkeepingthesuperiorones.
ThemodelinFigure1wasbuilttoamplifytherisk,ambiguityanduncertaintyassociatedwithfindingthebestpossiblesolutiontoachallenge,butdoingitwithinaprocessthatisbuildtomitigatetheirfinancialandmarketeffects.Thisisachievedby:(i)understandingthenon‐explicitandnon‐obviousaspectsofthechallengeanddiscoveringanomalies,andareasofopportunity,(ii)generatinghundredsofideasforcreatingthelargestnumberofpossiblealternativesolutions,iterating,testingandrefiningthesesolutions,(iii)findingthebestpossiblealternative,(iv)implementingitand,finally,(v)launchingandexploitingit.
3.2.LearningandDiscovery
Theobjectivesofthefirstphasetheinnovationprocessare(i)understandingthenon‐obviousdimensions,needsandcharacteristicsofthechallenge,(ii)learningasfastaspossibleaboutthem,and(iii)discoveringanomalies,patternsandareasofopportunity.Thiscanbeachievedinfoursteps:(i)identifyinglatentneeds,(ii)understandingthoseneeds,(iii)observation,and(iv)discovering.
3.2.1.IdentifyingLatentNeeds
Focusingonachallengeeliminatessomesourcesofanchoring,butnotall.Achallengecanalsorepresentabiasedconceptualizationaboutwhattheproblemis.Forthisreason,teamsneedtoreframethechallengeinordertounderstanditfromdifferentperspectives,andgobeyondthe
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explicitchallengeinordertoidentifyitsunderlying(andnon‐obvious)latentneeds.Thereareseveralmethodsusefulforthisendeavor;eachallowsteamstoseparatethechallengeinneedsthatareMutuallyExclusiveandComprehensibleExhaustive(MECE)increatingthebestpossibleconsumerexperience.Forinstance,theuserexperienceinasupermarketcouldbeseparatedinto(i)findingwhatyouarelookingfor,(ii)shopping,(iii)security,and(iv)checkout.
Theseneedscanbeexaminedseparately,andtheteamcouldassesswheretolookforsourcesofinspirationandunderstanding.
3.2.2.Understanding
Theobjectivesofthissteparetounderstandthebreadthanddepthofeachneed,thewaytheyrelatetoeachother,theirrelevanceincreatingtheuserexperience,identifypeopletointerviewandobserve,andsettingstoresearch.
Thus,understandinglatentneedsallowteamstodeepentheircomprehensionabouttherelevantdimensionsoftheinnovationchallenge,testtheirinitialassumptionsabouteach,andprepareapreliminaryroadmapforobservationandinterviewing.
Manyteamsandcompaniesfeeltemptedtobenchmarkwithfirmsfromtheindustrytheyareworkingon,andresearchhowothershavefacedandsolvedsuchneeds.Thisapproachisnotadvisableformanyreasonsbut,mainly,becauselookingatwhatothersinthesameindustryhavedonealsocreatesanchoring.ResearchonLeadUserInnovationMethod(Lutje&Herstatt,2004;EricvonHippel&Sonnack,1999)suggestteamsshould,regardlessoftheindustry,lookwherethedifferentneedsmighthavebeenfeltinsoexaggeratedwaysthatusersmighthavehadenoughincentivestoinnovate.
3.2.3.Observation
Accordingtoresearchinmarketing,about95%ofconsumptiondecisionsresultfromunconsciousthoughtsand,therefore,arenoteasilyarticulatedbyconsumers(Zaltman,2003).Thus,theeffectivenessofpolls,interviewsandfocusgroupsforgatheringinformationaboutconsumers’preferencesislimited.However,whilemostinformationisnotaccessiblethroughtraditionalmethods,itcanbecollectedthroughobservationandethnographicmethodsoffieldresearch.
Teammembersshouldgatherinformation,data,andsourcesofinspirationandlearningfromobservationandotherfieldresearchmethodsappliedtoallstakeholders,situationsandplacesrelatedtothechallengetheyaresolving.Here,theteamcollectsinformationintheformofphotos,videos,newspaperandmagazinearticlesandpictures,descriptionsandethnographicfieldnotes,personalaccounts,interviews,etc.Theobjectivesare(i)learningasmuchaspossibleaboutthedifferentdimensionsandlatentneedsidentifiedinthepreviousstages,(ii)identifyingleadusersthatcouldbesourcesofinnovations,and(iii)feedbacktheinitialunderstandingaboutlatentneeds,inordertorevisitandrefineit,ifneeded.
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3.2.4.Discovering
AsthefinalsteponthestageofLearningandDiscovery,theteamgatherstogetherinordertoshareeverythingthathasbeenlearnedonthefield.Theobjectivesare(i)redefiningtheinnovationchallengeatthelightofnewfindingsandunderstandingofitsunderlyinglatentneeds,(ii)makingsenseofitsnon‐obvious,counter‐intuitiveandparticularaspects,and(iii)identifyingparticularareasofopportunityordimensionsoftheuserexperiencethatcanbeexploited.
3.3.AlternativeGeneration
ThesecondphaseoftheprocesstakestheoutcomesachievedduringthephaseofLeaningandDiscoveryandappliesittogenerateaSpaceofPossibleSolutionthroughiterativestepsofbrainstormingandcyclesofprototypingandtesting.Thesecycleshelptheteamtostartfromhundredsofideasinordertocreateroughconceptsdesigns,obtainaSpaceofFeasibleSolutionsand,fromthen,iteratebetweenanalysisandsynthesisinordertoachieveasolutionthatisaptforpre‐launchimplementation(SeeFigure2).
Figure2:PrototypingandTestingCycles
Source:theauthor
3.3.1.IdeaGeneration
InthephaseofIdeaGeneration,theteamneedstogenerateasmanyideasaspossibletosolvetheinnovationchallengeaccordingtothelatentneedstobefulfilled.Thisenhancestheprobabilityofhavingtherawmaterialrequiredtodiscoverasolutionthatdoesnotonlysolvestheproblemathand,butalsoexceedsexpectationsabouttheconsumerexperience.Asresultofanchoring,traditionaldevelopmentteamswilltendtofocusonthecompetitivespaceinwhichthecompanyhasoperated(Hammond,Keeney,&Raiffa,1998).Thisisareasonwhyteams
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shouldencouragemarginalideasandusethesourcesofinspirationgatheredthroughmethodssuchasLeadUsermethod,andotherspointedtowardsfulfillingthelatentneedsfromvariousanddifferentindustriesandsectors.
Fromastatisticalperspective,thehigherthesetofideasgeneratedbytheteam,thehighertheprobabilitythatbreakthroughideaswillbefoundwithintheset.Forachievingthis,severalauthorshavesuggestedvariouspracticesandcontextsforbrainstorming(T.Kelley&Littman,2001;Parnes&Meadow,1959;Paulus,Brown,&Ortega,1996;Surowiecki,2004;Sutton&Hargadon,1996;Valacich,Dennis,&Connolly,1994).
Itisimportanttonotethatideagenerationisafirststepofanalysisthatwillbefollowedbysynthesisofideasintodesignconcepts,testing,learning,refinementandbyvariousroundsofbrainstorming,conceptgeneration,prototyping,testing,learningandbetterunderstanding,andrefinement.Thisisexplainedasfollows.
3.3.2.PrototypingandTestingCycles
Prototypingistheshorthandofinnovation(T.Kelley,2001)becauseallowsteamstorefine,synthesize,concretizeandcommunicateideasaboutpossiblesolutions(Buxton,2007).Theprototypeandtestcyclesiteratebetween:
• Prototyping(Analysis):startsbymodifyingunderstandingandlearning,andincorporatingthatlearningintogenerationofnewideas.Theseideasareincludedintonewareasofopportunityandconceptdesignsthatarelaterrefinedintomanyprototypesfornewexperiencesthataresupportedbyproducts,servicesandprocessesconcepts.
• Testing(Synthesis):takestheseprototypesandtesttheminto“markets”thatcanbemoreoflesscomplete,regardingthe“type”ofprototype.TeamsthenobtainfeedbackusingsomeoftheobservationmethodsusedinthephaseofLearningandObservation,analyzedata,discardsomeaspectsofeachprototype,andsynthesizethebestaspectofeachintoanewroundofanalysis.
Thesecyclesarerepeatedstartingfromvariouslow‐costprototypeswiththeobjectiveofbrainstorming(whatIDEOcallsinspirationalprototypes),tosomemedium‐costprototypeswiththeobjectiveofexperimenting(whatIDEOcallsevolutionprototypes),tofewhigh‐costprototypeswiththeobjectiveofvalidatingthefinalsolution(whatIDEOcallsvalidationprototypes).Iteratingfromlow‐cost,roughprototypestohigh‐costandrefinedprototypesallowsteamstorapidlyidentifydesignconceptsthatareinferioranddiscardthem,usinglearningthroughexperimentation,andonlyinvestseriouslyinthoseoptionsthathaveshowntobesuperior.Ifprototypingistheshorthandforinnovation,rapidprototypingallowsfasterandmoreeffectiveinnovationbecauseitenableslearningbyfailingassoon,asfastandascheapaspossible.
Prototypingandtestcyclesalsohavethebenefitofallowingfront‐loading,andacceleratingthediscoveryprocessaboutwhatcangowrongwithadevelopmentprocess(Thomke&Fujimoto,2000).Insimplewords,prototypingandtestcycleshelpteamstoreducerisk,ambiguityanduncertaintythroughlearningaboutmost–ifnotall‐ofwhatcangowrongwithaproject.
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StefanThomkehasaddressedthequestionofhowmanyprototypesandexperimentstocarryout(Thomke,2003a).Inhisview,theanswerdependsonthecombinationbetweentheworstpossibleoutcomebythelatestidentificationofproblems,andpotentialsavingsfromtheearliestidentificationofproblems,aswellastheaveragecostofaroundofexperimentation.
3.4.Pre‐LaunchDevelopment
Theobjectivesofthepreviousphaseshavebeenunderstandingthenon‐obviousdimensionsoftheinnovationchallenge,learningasmuchandfastaspossibleaboutthem,generatingalternativedesignconcepts,anditerateamongtheminordertoidentifyanddiscardinferiorsolutions.Insummary,theobjectiveshavebeentoreduceignorance,ambiguity,uncertaintyandrisk.Onceateamhasreachedapointwherelearningthroughprototypingandexperimentationdoesnotgeneratenewlearningand/ordoesnotrequiresignificantrefinementoftheprototype,itcanstartpre‐launchdevelopment.
Thisphasefocusesondetaileddesignofthenewproduct,relatedservicesandprocesses,designofthesystemsthatwillallowandsustainthenewuserexperience.Itincludessystem‐levelanddetaileddesign,andfinalroundsoftestingandrefinement,alongwithdesignformanufacturing(inordertoreducemanufacturingcosts),designingdistributionchannels(inordertooptimizethelogisticsofmarketdelivery),designingthelaunchofthenewproduct(inordertomaximizemarketadoptionanddiffusion),andmarketing(inordertodefinesalesplan)andproduction(inordertoevaluateearlyproductionoutputandplacement)plans,amongothers.
Thisphaseallowsforappropriatemarketlaunchandexploitation(Ulrich&Eppinger,2004),alongwithlearningasmuchaspossibleaboutproductionandexploitationbeforegettingtothemarket(Pisano,1996).
3.5.LaunchandExploitation
Theobjectivesforthelastphaseonthemodelarefocusedongeneratingpaybackandmanagingthelifecycleoftheinnovation.Buildingonpreviousresearchandpracticeaboutthefinancialreturnsfrominnovation(Andrew&Sirkin,2006),teamsshouldfocuson(i)planningandexecutingthelaunchofinnovationssothatitcangenerateenoughinertiatoreachadiffusiontippingpointasfastaspossible,and(ii)generatingsalesinordertosecurefinancialreturn.
AccordingtoAndrewandSirkin(2006)therearetwoimportantvariables:(i)thetimetoreachvolumeproductionattheminimumscaleneededtodeliverpaybackfortheorganization,and(ii)thepost‐launchinvestmentneededtomaximizepayback.
4. TheProcessofLearningtoInnovateTheprevioussectionsummarizedageneraldesignthinking‐basedinnovationmethodcreatedbystudyingvariousfirms,andrefinedthroughalivinglaboratoryatthebusinessschoolandschoolofengineeringatAdolfoIbáñezUniversity.Idevelopedacoursesyllabusforan“InnovationWorkshop”inwhichIwantedtotestwhetheronecouldteachgroupsofordinarystudentstodevelopextraordinarysolutionsforrealproblems.MymotivationforcreatingthesecoursesstartedasvisitingresearchscientistatMITMediaLab,between2001and2002,whereI
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foundmostfacultyapplyingconstructionismonthecurriculaofitscourses.IwasluckytohavemetMitchelResnick,SandyPentland,BakhtiarMikhakandbecameawareoftheteachingworkofNeilGershenfeldonhiscourse“HowtoMake(Almost)Anything”2.IhavealsogainedandlearnedverymuchfromcontactswithStefanThomke,fromHBS,andhiscoursematerialfor“ManagingProductandServiceDevelopment”,andStanford´scourseIntroductiontoHumanComputerInteraction(CS147).Finally,myteachingapproachwasalsoheavilyinfluencedbymyparticipationatHarvardBusinessSchoolColloquiumonParticipant‐CenteredLearning(CPCL),andasmasterandPhDstudentatvariousMITandHarvardcourses.
Basedonthesecoursesandresearch(mentionedinSection2),andthemodelillustratedinFigure1,Idevelopedacoursesyllabusthathasbeenimprovedthrough10classestaughtsince2007,withmorethan500studentsandabout100projectteams.Afterthesuccessandresultsfromthiscourse,wedevelopedadesignthinking‐basedMasteronInnovation(MI)program,whichisnowonitssecondgeneration3.InthispaperIwillfocusontheInnovationWorkshop,ratherthantheMI,fortworeasons:(i)theworkshophasmorehistoryandresultsthantheMI,and(ii)hasbeenappliedtotraindevelopmentteamswithinfirmswithgoodresults.
Inthefollowingsection,Isummarizethe(i)objectives,(ii)teachingphilosophy,(iii)structure,and(iv)outcomesofthecourse.
4.1. Objectives
Thegeneralobjectivesofthecoursearetochangethewaystudentsthinkaboutinnovation,andhowtheyactwhiledevelopinganewproduct,serviceorprocess.Bytheendofthecourse,studentsshouldbeabletoidentifynon‐obviousandlatentneedsfromroughlydefinedinnovationchallengeandexplicitneeds.Theyshouldgainfirst‐handexperienceondesignthinkingasmethodforapproachingdevelopmentproblems,andfeelmorecomfortablewithhandlingrisk,ambiguity,anduncertainty,aswellasrecognizetheirareasofignorance.Theyshouldknowhowtolearnthroughfailureandexperimentation,feelcomfortablewithit,andappreciatethebenefitsoffront‐loadingproblem‐solvingaswellasmanagingbasicmethodsforobservation,interviewing,discovery,experimentation,andprototyping.
4.2. TeachingPhilosophy
Inordertoaccomplishtheseobjectives,thecourseisdesignedtobeanexperiencesostudentscanlearnbydoingandapplydesignthinkingreasoningtorealproblems.
Giventhatidentifyinganworthyinnovationchallengeisnotaneasytask,Istartbycontactingcompanies,NGOsandgovernmentorganizationsforproblemsorprojectsthatcanbeusedaschallenges.Thestudentsarepresentedwithlooselydefinedchallenges,
2Forthesyllabus,pleaselookforcoursecodeMAS.863atMITOpenCoursewareathttp://ocw.mit.edu/OcwWeb/web/home/home/index.htm
3Forinformationandstructureonthisprogram,pleaseseehttp://www.uai.cl/images/stories/Facultades/Negocio/Master/mi/folleto%20mi.pdf
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presentedbyCEOs,orareamanagerssuchastheChiefTechnologyorMarketingOfficer.Thechallengesareimportantproblemsinwhichfirmsareworkingorthinkingonand,inmostcases,firmsaskstudentstosignNon‐DisclosureAgreements.Thearrangementsaboutintellectualproperty(IP)havebeenvaried.Inthecaseswherethefirmspayorrewardstudents,thesponsorcompanyretainIP,whileinsometheyallowstudentstoowntheIPandhavedecidedtoinvestontheirdevelopments.
Inordertomakestudentsfaceanddealwithhighlevelsofambiguityanduncertainty,thereisnoplaceforclarificationquestionsfromtheprofessororsponsorfirms.Instead,studentsareencouragedtolearnwhattheyneedfromfieldwork,andtoreceivefeedbackfromsponsorfirmsandconsumersfromthevariousconceptsandprototypesdevelopedthroughthecourse,andfromclassdiscussion.
Asresultthecoursefocusesonparticipant‐centeredlearning.Thisalsoreflectsonthegradingsystem:(i)50%ofthegradingisassignedbythesponsorcompany,basedonthequalityofthefinalworkpresentedbythestudents,and(ii)theother50%isassignedbytheprofessortoeachstudent’scontributiontothelearningprocessoftheclass,throughdailyassessmentofhisin‐classandonlineparticipation.
Finally,Iusedthiscourseasalaboratoryformyresearchoninnovationprocessestobothdeveloptheory,andletstudentstousetheory(Carlile&Christensen,2005).Therearetwofinaloutcomesforeachteam:(i)afinalprototype,and(ii)aprojectreportthataccountsforallsteps,ideas,photographs,sourcesofinspiration,fieldworknotes,conceptdesigns,andprototypescreatedthroughtheprocess.
4.3. Structure
Thecoursehas5modules,eachwithadifferentobjective.Attheendofeachmodule,eachgroupisrequiredtopresentanadvancetotheprojectinanyformat(video,memo,prototype,etc.).ThecoursestructureisillustratedbyFigure3.
1. UnderstandingInnovationProcesses:focusesonintroducingstudentstodesignthinking‐basedinnovation,andmakethemcompareittotraditionalproductdevelopmentandengineeringprojectmanagement.Thisisachievedbycombiningcase‐basedandlecture‐basedclasses.Attheendofthemodule,sponsorfirmspresentthechallengestotheclass.
2. SourcesofInnovation,NeedsandObservation:Thefocusofthismoduleistoprovidestudentswiththepossibilitytolearnbyapplyingmethodsofreframing,identificationofsourcesofinnovation,identificationoflatentneedsandfieldwork(observation,interviewing,etc.).Theobjectiveofthismoduletomakestudentslearnanddiscovernon‐obviousaspectsofthechallengebyapplyingandcontrastingmethods,sotheycanperceivethechallengeanditsneedsfromdifferentperspectivesanddiscoverareasofopportunity.Thelearningobjectivesareachievedthroughacombinationofcase‐basedclasses,teamworkplanningandfieldwork.
3. IdeaandConceptGeneration:Thismodulefocusesongeneratingskillsinbrainstormingandconceptgenerationthroughacombinationofcase‐basedclasses,onediscussion‐basedlectureandteamworkonideaandconceptgeneration.Studentsapplyoneor
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variousbrainstormingtechniquestocreatepreliminaryideasandconcepts,inordertobuildtheskillsneededforModule4(LearningthroughExperimentationandPrototyping)andmanagePrototypeandTestingCycles(illustratedinFigure2).Theyalsostartplanningusabilitytests,andhowtoobtainfeedbackfromcustomersandthesponsorfirm.
4. LearningthroughExperimentationandPrototyping:thismoduleisaimedtocreateskillsforlearningbyexperimentationandprototyping.Studentsgetexposedtocasesandmethodsaboutprototypingandexperimentation,andtheconsequencesoffailingassoon,asmuchandascheapaspossibleinorderto(i)learnasmuchaspossibleaboutwhatmightnotwork,and(ii)decreasetheprobabilityoffailinginthemarket(afterlaunchinganewproductorservice).
5. ProcessDesignandImprovement:Thelastmodulefocusesonexaminingtheexecutionofaninnovationprocess,improvingit,andallowingtheorganizationforcontinuousimprovementofitsinnovationroutines.
Figure3:CourseModules
4.4. Outcomes
EveryInnovationWorkshopIhavetaughthashadbetweenoneandfivechallenges.Ineveryterm,Ihavemadechangesbasedontheresultsoftheprevious,andasresultthecurriculahasevolvedovertheyears.Partofmyresearchfocusesonanalyzingtheoutcomesorthecourseforfurtherimprovement,butIdidnothadtheopportunitytocomparethequalityoftheworkofmystudentswithotherssimilarstudents,solvingthesameproblem,butwithouttheskillsandknowledgegainedattheInnovationWorkshop.
Suchopportunityhappenedduring2008,atthe“DesafíoalaInnovaciónChile2008”(the2008ChileanInnovationChallenge),thattookplaceduringthesecondhalfof2008.Chile´sInnovationForum4organizedastudentcompetitionwhere4organizations(threecompanies
4Seehttp://www.foroinnovacion.cl/fortheInnovationForum
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andoneministry)presentedonechallengeeach.Studentparticipationreachedabout500studentsgroupedinto63teamsfrom23universities.
Thecompetitionhadthreephases(SeeFigure4).Thefirsttwophasesfocusedonblindreviewoftheproposalsbyexecutivesofthecompaniesandtheministry.Fromthe63teamsstartinginPhaseI,35madetoPhaseII,andonly23reachedPhaseIII.PhaseIIIincludedatimedpresentationfortheexecutives.Atthebeginningofthecompetition,14ofthe63teamswereformedbystudentswhohavebeentrainedbymeattheInnovationWorkshop(22.2%).ByPhaseIII,11outofthe14teamswerestillincompetition(47.8%).
Eachorganizationhadtochooseonlyoneteamaswinner.Fromthe23teamsthatreachedfinales,fourteamswereselected:threemaster‐levelteamswithtrainingattheInnovationWorkshop,andoneteamofPhDstudentswithoutthetraining.Thefinalstep,however,wastochoosethemostinnovativesolutionamongthese4teams.Thistaskwasgivento8ofthepeoplethathavebeenawardedAVONNI,theChile´sprestigiousNationalInnovationAward.
Afteranalyzingtheprojectsofthefourfinalteams,theAVONNIjudgesdecidedtoawardasMostInnovativeProjectthesolutionofateamcomingfromtheInnovationWorkshop.Noneofthesolutionsweremadepublic,becausebecameintellectualpropertyofthesponsorfirms.
Figure4:PhasesandCompetingTeamsatthe2008ChileanInnovationChallenge
Source:theauthorbasedondatafromInnovationForum
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5. ConclusionsRegardlessofthesector,thesustainabilityofavaluepropositionisamatterofstrategicrelevance.Whetheroneconsiderscreationofpublicorprivatevalue,designthinking‐basedproblemsolvinghasthebenefitofallowingsuperiorperformance.Fromtheperspectiveofinnovation,addressingsustainabilityinvaluecreationnecessarilyrequireshandlingthemovingtargetproblem.Themovingtargetproblemiscreatedbytheinteractionamongthetimeneededtodevelop,implement,launchandexploitasolution,andtheuncertaintyandambiguityinherenttoanyproblem.Teamscangeneratebreakthroughsolutionsbyreducingtimetomarket,whilehandlingambiguityanduncertaintyin“adequate”manners.By“adequate”mannersImeantoamplifyambiguityanduncertainty,inordertoenhancethechaosinherenttoaninnovation,butwithinaprocessthatisdesignedtomitigatetheirimpact.
Inthispaper,Iarguethatdesignthinkingbasedinnovationcancontributeinimportantwaystothesustainabilityandsuperiorityofproblemsolving,throughmethodsthatallowteamsto(i)learnaboutthehiddenandlatentaspectsofchallenges,anddiscoverareasofopportunityandanomalies,(ii)becapableofgeneratingthelargestpossiblesetofalternativesforsolutions,(iii)selectand/oridentifysuperiorsolutionsbyiterativecyclesofprototypingandtesting,(iv)identifyassoonandfastaspossiblewhatcangowrong,and(v)learnbeforelaunchhowtoramp‐upthenewservices,productsandprocesses.
Researchshowsvariouscompanieshaveachievedthisgoal,andmyparticularresearchpresentsanapproachfordoingit.However,themostrelevantaspectpresentedhereisthefactthatteamsandorganizationscanlearnhowtoachievesuperiorperformancethroughdesignthinking‐basedinnovationtraining.Whetherinpublicpolicy,management,designandengineeringschools,orduringin‐companyexecutiveeducation,oneneedstofocusoncreatingasetofnewcapabilities:(i)learningtocraftaninnovationchallenge,(ii)learningtoidentifysourcesofinnovation,(iii)learningtoperceiverealityindifferentways(bycreatingcreativecapacity),(iv)learningtogenerateasmanyideasaspossibleand,byexploration,identifythosethataresuperior(bygeneratingexplorationcapacity),(v)learningtofailassoon,fastandcheapaspossibleinordertosucceed.
This,however,requiresamorebasiclearning:learningtoun‐learnwhatkeepspeopletrappedintotheefficientwayofdoingthings:(i)avoidingmistakes,(ii)beingcost‐efficient,(iii)implementingthingsatonce,etc.Theresearchonthispaperisunderdevelopment,butalreadyhasshownsignificantresults,aswiththeexampleofstudentscompetingforsolvingproblemsduringthe2008ChileanInnovationChallenge:(i)facedwithsameproblems,groupsofstudentstrainedindesignthinkingbasedinnovationachievesuperiorresultsthatgroupsofstudentswithoutsuchtraining,and(ii)theskillsandmethodsforachievingsuchperformancecanbelearned.
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