designchain business-by-design workshop pack for iiba

IIBA BUSINESS DESIGN WORKSHOP CANVASSES | VERSION 1.0 1

Business by Design

IIBA WORKSHOPOCTOBER 2016


Our Design in Business Course. Design Thinking for those “in” the business

Description

Design in Business introduces individuals and teams to design tools that will help them be more human-centred in their approach to problem solving.

Attendees learn how to apply design tools to launch new and innovative products and services to market, as well as how to leverage these tools to support strategic planning, business analysis, architecture and agile delivery.

Who is it for?

• Business Analysts

• Project Managers

• Business Leaders

• Strategic Planners

• Business Planners

• Business Architects

• Enterprise Architects

What does it cover?Design in Business covers the essential design tools to help you explore, ideate, prototype and deliver higher value ideas to market in shorter timescales.

Helping you link it all together

One of the key value propositions of our course is the integration with the strategy and business planning aspects to determine viability and feasibility.

Attendees will learn how to leverage agile techniques to help focus investment and deliver ideas to market more efficiently.

“Our team found the experience invaluable. The course helped us challenge some of our established ways of thinking to ensure we have the tools and techniques available to appropriately articulate problems, then to analyse them and design and iterate possible solutions in a human centred, business focused way”— Banking client: Product Design, Change and Delivery

Design in Business is hands on, taught by Business Designers working and delivering business outcomes.

What does it involve?

• Kick-start: Attendees choose an actual problem within their business, and we teach you how to solve that problem. This part-time option usually runs over six to seven weeks using a combination of theory and hands-on activities. The outcomes are valid prototypes ready for rollout into your business.

• Five-day class: This option is a combination of theory and hands-on activities that run within a classroom environment. Attendees work through a challenging digital experience case study to sharpen their problem-solving and design skills.

Helping you and your teams develop a design mindset for

business

Contact Us

DesignChain520 Bourke Street, Melbourne, AUS

(+61) 4 19 192 [email protected]

Visit us on the web:www.designchain.co

Design in Business Training Course


Designing for Growth THE DESIGNCHAIN APPROACH

ü DESIREABLE FOR CUSTOMERS

ü FINANCIALLY VIABILE FOR THE BUSINESS

ü FEASIBLE TO DELIVER

Business Model Innovation

“What's possible?”

Business Strategy

“What will we do?”

Operating Response

“What's the Blueprint to for the fastest

delivery with the least amount of effort?”

Business Model“What does it look

like”

Understanding value

“What value can we create for our customers

and capture for our business?”

Creating growth through innovative business models

Testing viability of business models against the industry patterns and

your own organization

Understanding the right levers to pull to create and

capture value

Building and planning the engine of delivery


Linking it together THE HYBRID PROCESS

Empathy MapDesign Principles

Value Model

Customer Profile

Problem Statement

Value PropositionCanvas

Business Model

Canvas

Business Motivation Model

Service Blueprint

Operating Model Canvas

Capability ModelScaled Agile Framework


A Multi-Disciplinary Journey HOW ARE PROBLEMS SOLVED?

* From Roger Martin (2009) The Design of Business

MYSTERY

HEURISTIC

ALGORITHM

T h e K n o w l e d g e F u n n e l

Design Thinking

Architecture Thinking

Agile TM Thinking

No single discipline can traverse the funnel, it is a multi-disciplinary journey.

TH

E A

GIL

E O

RG

AN

IZA

TIO

N


Business PlanningProject ManagementAgile Delivery

Design ThinkingHuman Centered DesignPsychology and behavioral analysis

Strategic PlanningBusiness DesignBusiness Model Innovation

Hybrid thinking focusses on utilizing the strengths from multiple disciplines HYBRID THINKING

DesirabilityWhat is valuable to

people?

ViabilityWhat is value to the

business?What can you sell?

FeasibilityWhat can you implement?

Starts Here

Starts Here

Business Architecture

The three lenses must be aligned at a business model level, marketing mix level, products and service model level and operating model level

Business Design

Service Design

Capability Design


THE KNOWLEDGE FUNNEL

Non-core but complex -Outsource

Innovation, chaos & unresolved

mysteries

HIGH

HIG

H

LOW

LO

W

Must be done but adds little value to product or services

Very important to success, high value added to products and services

STRATEGIC IMPORTANCE & VALUE

CO

MP

LE

XIT

Y A

ND

DY

NA

MIC

S

Complex negotiation, design, or decision

process

Many business rules; expertise involved

Some business rules

Procedure or simple algorithm

Non -Core Competencies

Core Differentiating Competencies

Everyday, highly repeatable and

automated

Make repeatable and reliable to gain efficiency

Core Competitive

Competencies

Industrializing at speed HOW ARE PROBLEMS SOLVED?

Source: Adapted from “Business Process Change” by Paul Harmon

GOAL: Reliably produce consistent, predictable

outcomes

GOAL: Validity- Produce outcomes

that meet desired objectives

People Dominance

Process Dominance

Technology Dominance

The Challenge is reducing the time it takes to move from the unresolved business challenges space to the repeatable formulas space.


How different Disciplines relate to each other COHERENCY ACROSS DISCIPLINES

Problem Solution


Knowing when to use design, architecture and agile COHERENCY ACROSS DISCIPLINES


Moving through the funnel across and problem and solution landscape HOW ARE PROBLEMS SOLVED?

Unknowable: The relationship between causeand effect is impossible to determine as they constantly shift. In chaos, it is necessary to act first and then sense through the result of action how to further respond. Understanding the problem comes later. This is the domain of rapid response.

Example: Natural disasters

Unknown Problems:The problem is in constant flux as a change to the situation causes ripple effects and unpredictabilityin other aspects. Information is often incomplete. Rather than implementing a solution, devising a concept, testing, iterating and then responding is needed. Problems often become complex when human behavior is a significant factor. This is the domain of emergence.

Example: Schooling experiences, organizational change management, traffic management

Known unknowns:A complicated problem can have multiple right solutions. Complicated problems are understood, analyzed and then responded to. It often requires expertise to solve and is largely process driven. Solving a complicated problem often requires the right expertise along with the right tools. In this realm you may know you have a problem but may not be able to solve it alone. This is the domain of expertise.

Example: Fixing a car, constructing an airplane.

Known knowns A simple problem is one of cause and effect. The solution is rarely disputed. The problem can be categorized, understood and a response devised based on the information. This is the domain of best practice.

Example: 1+1 = 2, solving a jigsaw puzzle.

The Knowledge / Innovation funnel

* ‘A Leader’s Framework for Decision Making’ David Snowden & Mary Boone


Creating a Blend of Thinking. The origins of Design Thinking HOW ARE PROBLEMS SOLVED?

AnalyticalThinking

IntuitiveThinking

100% Reliability 100% Validity

DesignThinking

From: ‘The Design of Business’, Roger Martin (2009)


When is Design Thinking Appropriate? DESIGN VS ANALYTICAL METHODS


Four Orders of Design HOW BIG IS THE PROBLEM?

Graphic Design Visual DesignCommunications Design

Product DesignIndustrial DesignEngineeringArchitectureFashion Design

Service DesignUX DesignInstructional Design Process Design

System DesignBusiness DesignOrganisational DesignCulture DesignCapability Design

4th

systems

3rd

interactions, experiences

2nd

objects, artefacts

1st

signs, symbols

Low complexity

High complexity

*Richard Buchanan 1992: Wicked Problems and Design Thinking


The Double Diamond THE DESIGN PROCESS

Discover Define

Understanding the Problem Understanding the Solution

1

2

4

3

Develop Deliver

Point of

View


FINCO Background THE DESIGN CHALLENGE

FINCO are a mature financial services company providing traditional banking services to the citizens of FINLAND.

They have enjoyed a great market share and many long years of loyal customers and revenue growth. This is now coming under pressure from a number of changes in the market. Especially in the space of payments.

Fintech is changing the face of global payments. Global investment in fintech ventures tripled in 2015 to US$12 billion. As new payment capabilities come to the fore, cutting-edge technology is transforming how transactions are initiated and processed.

This is no longer just a case of new currencies or faster payment methods, but an entire rethinking of transfers of “value” and how these are undertaken. This presents both a challenge and an opportunity for FINCO.

The combined impact of these disruptive forces is likely to dramatically reshape the payments industry in the next five years, and will be decisive in determining how the revenue growth picture develops and in fact the very survival and future of FINCO as a dominant market player.

As always, disruption also brings opportunity. FINCO’s executive feel that success in this reshaped landscape will come to those who keep pace with technological change, customer expectations and the quest for innovative payments solutions.

The CEO is aware that any organization looking to survive in todays economy must innovate whilst the times are good.

She has kicked off a series of strategic design initiatives to understand how best to respond to competitive banks in the marketplace, as well as take advantage of the new technologies that are entering into the market.

The CEO and her team have decided they want a human centred design approach, believing that the secret lies in creating innovative experiences through value based intention exercises, wrapped in innovative payment mechanisms that cross monetary boundaries and shape society not just banks.


Challenge Description THE DESIGN CHALLENGE

Challenge Description

There are many methods of paying for stuff, largely dictated by individual organisations without consistency of service nor done in a way that truly addresses the value sought by customers.

In their everyday lives, customers have lots of ‘life’ scenarios that impose complex payment challenges which cross organisational and country boundaries and create pain in their lives.

So we design to: Make people’s lives easier when it comes to paying for stuff


DRAFT: Research PlanDesign Challenge: The challenge we have accepted from our sponsor who has requested the Design Work is:

1 2 3 4 5 6Purpose: Guide Discover phase of design process

Frames for ExplorationThe Design Team have chosen the following set of frames (or dimensions) to guide discovery in the Exploration (problem or

opportunity) Space:

Research QuestionsIn consideration of the chosen frames for the exploration

space, we seek the following knowledge:

Research Subjects & Contexts We have identified the following people and contexts from

which we seek knowledge in the exploration space::

Research Approach and ToolsSelection of Primary and Secondary Research activities:

Assigned ResponsibilitiesTo conduct the Research activity, the Design Team has agreed

to the following responsibilities:

Data Collection GuidelinesDuring the Discovery Phase we will collect information of

various types and deposit them in a shared location in preparation for Define phase and Group Synthesis activities.

Make people’s lives easier when it comes to paying for stuff

ValuePayment typesPayment times and delaysProduct or serviceOnline or F2FFund availabilityCommissionsRewards and awards….

• a• Stakeholder #1: Merchant• Stakeholder #2 : Purchaser• Stakeholder #3: Investor• Stakeholder #4: Charity recipient• Stakeholder #5: Bank for deposits• Stakeholder #6: Clearing house• Stakeholder #7: Retailers (Awards and

rewards)• Staekholder#8: Logistics and delivery

• XYZ• ABC

Primary ResearchAsk• Diary study – ask stakeholder to write

down a day in the life of. Or an experience in the life of

• Love letter / break up letter – ask stakeholder to write a break up letter to society (Melbourne city) as to why they have given up on it

• Picture cards discussions with key questions

• Semi-structured interview Participate• Find and apply for shelter for eveningObserve• Fly-on-wall• ShadowingSecondary Research• City of Melbourne research papers• Other case study providers


Empathy Map DISCOVER AND DESIGN

Needs and Insights



Discover Define


1

2

4

3

Develop Deliver

Point of

View


Using The value proposition canvas to develop the service models

The Value (Proposition) Map describes the features of a specific value proposition in your business model in a more structured and detailed way. It breaks your value proposition down into products and services, pain relievers, and gain creators.

The Customer (Segment) Profile describes a specific customer segment in your business model in a more structured and detailed way. It breaks the customer down into its jobs, pains, and gains.

Gain Creators describe how your products and services create customer gains.

Pain Relievers describe how your products and services alleviate customer pains.

You achieve CUSTOMER Fit when your value map meets your customer profile— when your products and services produce pain relievers and gain creators that match one or more of the jobs, pains, and gains that are important to your customer.

Gain describe the outcomes customers want to achieve or the concrete benefits they are seeking.

Pains describe bad outcomes, risks, and obstacles related to customer jobs.

This is a list of all the

Products and Services a value proposition is built around.

Customer Jobs describe what customers are trying to get done in their work and in their lives when dealing with a problem or challenge.

*Value Proposition Design by Alexander Osterwalder


The Customer Profile canvasWhat do I the customer want?

The Customer Profile is completed one per customer segment

Problem Statements from the previous workshop are used as input into the customer jobs.Describe what customers are trying to get done in their work and in their lives when dealing with the identified problem or challenge within the context or situation identified in workshop 1

Functional JobsTask based - mow the lawn, eat healthy as a consumer, write a report, or help clients as a professional

Social JobsThese jobs describe how customers want to be perceived by others, for example, look trendy as a consumer or be perceived as competent as a professional.

Personal / Emotional JobsCustomers seek a specific emotional state, such as feeling good or secure, for example, seeking peace of mind regarding one’s investments as a consumer or achieving the feeling of job security at one’s workplace.

Customer PainsDescribe those things that annoy the customer segment before, during and after trying to get the jobs / problem done

Undesired outcomes, and characteristicsPains are functional (e.g., a solution doesn’t work, doesn’t work well, or has negative side effects), social (“ I look bad doing this”), emotional (“ I feel bad every time I do this”), or ancillary (“ It’s annoying to go to the store for this”). This may also involve undesired characteristics customers don’t like (e.g., “Running at the gym is boring,” or “This design is ugly”).

ObstaclesThese are things that prevent customers from even getting started with a job or that slow them down (e.g., “I lack the time to get this job done accurately,” or “I can’t afford any of the existing solutions”).

RisksWhat could go wrong and have important negative consequences (e.g., “I might lose credibility when using this type of solution,” or “A security breach would be disastrous for us”).

Customer GainsGains describe the outcomes and benefits your customers want when they are trying to solve the job / problem. Gains include functional utility, social gains, positive emotions, and cost savings.

Required GainsThese are gains without which a solution wouldn’t work. For example, the most basic expectation that we have from a smartphone is that we can make a call with it.

Expected GainsThese are relatively basic gains that we expect from a solution, even if it could work without them. For example, since Apple launched the iPhone, we expect phones to be well-designed and look good.

Desired GainsThese are gains that go beyond what we expect from a solution but would love to have if we could. For example, we desire smartphones to be seamlessly integrated with our other devices.

Unexpected GainsThese are gains that go beyond customer expectations and desires. Before Apple brought touch screens and the App Store to the mainstream, nobody really thought of them as part of a phone.



Value Proposition Canvas: Customer Profile DEFINE


Design Criteria Canvas DEFINE

Purposeful and polished aesthetics

Reduced Complexity

Dedicated Spaces. Each doing 1 thing well

Integration of digital ecosystem assets

Design with omni-channel in mind

Prompt final settlement on the day of value

Assets should be distributed not centralised

Security and operational reliability


BUSINESS MODEL INNOVATION USING DESIGN

DefineStep 7: Define the problem statement and how might we question

Turn an underlying belief on its head.

•Formulate a radical new hypothesis, one that no one wants to believe—at least no one currently in your industry.

•For instance: How might we place a financial-services provider’s IT entirely in the cloud… so that we could drastically reduce the minimum economic scale?

• Target: What if people who shopped in discount stores would pay extra for designer products?

• Apple: What if consumers want to buy electronics in stores, even after Dell educated them to prefer direct buying?

• Palantir: What if advanced analytics could replace part of human intelligence?

• Philips Lighting: What if LED technology puts an end to the lighting industry as a replacement business?

• Amazon Web Services: What if you don’t need to own infrastructure yourself?

• Amazon Mechanical Turk, TaskRabbit, and Wikipedia: What if you can get stuff done in chunks by accessing a global workforce in small increments?

Remove Money from the equation??


Problem Canvas DEFINE



Discover Define


1

2

4

3

Develop Deliver

Point of

View


Gain Creators. Do they…Create savings that make your customer happy?(e.g. in terms of time, money and effort, …)Produce outcomes your customer expects orthat go beyond their expectations?(e.g. better quality level, more of something, less ofsomething, …)Make your customer’s job or life easier?(e.g. flatter learning curve, usability, accessibility, moreservices, lower cost of ownership, …)Create positive social consequences that yourcustomer desires?(e.g. makes them look good, produces an increase in power, status, …)Do something customers are looking for?(e.g. good design, guarantees, specific or more features, Fulfil something customers are dreaming about?(e.g. help big achievements, produce big reliefs, …)Produce positive outcomes matching yourcustomers success and failure criteria?(e.g. better performance, lower cost, …)

The Value Map canvasWhat could we the bank provide?

The Value Map Canvas is completed one per customer segment profile

Products and ServicesWhat products and services will we offer to deliver what our customer segment sees as valuable.

This bundle of products and services helps your customers complete either functional, social, or emotional jobs or helps them satisfy basic needs.

Products and services don’t create value alone– only in relationship to a specific customer segment and their jobs, pains, and gains.

Physical / tangibleGoods, such as manufactured products.

IntangibleProducts such as copyrights or services such as after-sales assistance.

Digital – Focus on these firstProducts such as music downloads or services such as online recommendations.

FinancialProducts such as investment funds and insurances or services such as the financing of a purchase.

Pain RelieversPain relievers describe how exactly your products and services will alleviate specific customer pains.

They outline how you intend to eliminate or reduce some of the things that annoy your customers before, during, or after they are trying to complete a job or that prevent them from doing so.

Pain Relievers. Do they…Produce savings?(e.g. in terms of time, money, or efforts, …)Make your customers feel better?(e.g. kills frustrations, annoyances, things that give them a headache, …)Fix underperforming solutions?(e.g. new features, better performance, better quality, …)Put an end to difficulties and challenges yourcustomers encounter?(e.g. make things easier, helping them get done, eliminate resistance, …)Wipe out negative social consequences yourcustomers encounter or fear?(e.g. loss of face, power, trust, or status, …)Eliminate risks your customers fear?(e.g. financial, social, technical risks, or what could go awfully wrong, …)

Gain CreatorsGain creators describe how your products and services create customer gains. They explicitly outline how you intend to produce outcomes and benefits that your customer expects, desires, or would be surprised by, including functional utility, social gains, positive emotions, and cost savings.



Value Proposition Canvas: Value Map DEVELOP


Business Model Categories BUSINESS MODEL PATTERNS

*Adapted from - The Business Model Navigator: 55 Models That Will Revolutionise Your Business by Oliver Gassmann


Example Business Model Options BUSINESS MODEL PATTERNS

*Adapted from - The Business Model Navigator: 55 Models That Will Revolutionise Your Business by Oliver Gassmann


TribalMind Example EXAMPLES

TRIBALMINDTribalmind is a web based marketing platform that streamlines the process of creating and tracking lead magnets for your business. It facilitates a multi-sided marketplace that connects marketers with customers, and customers to customers, to answer WHO and WHY people visit web sites, thereby providing much stronger relevancy to the customers problem


DropBox Example EXAMPLES


Nespresso Example EXAMPLES


Business Model Canvas DEVELOP

Who Will Help You?KEY PARTNERS

How do you do it?KEY ACTIVITIES

What do you need?KEY RESOURCES

Why do you do it? need?VALUE PROPOSITION

How do you interact?AUDIENCE RELATIONSHIPS

How do you reach them?DISTRIBUTION CHANNELS

Who do you help?AUDIENCE SEGMENTS

How much will you make?REVENUE STREAMS

What will it cost?COST STRUCTURE

Business Model Generation by Alexander Osterwalder


Business Motivation Model DEFINE AND DEVELOP

Mission Vision

Goal 1

Objectives

Goal 2

Objectives

Goal 3

Objectives Objectives

Goal 4

Strategies & Tactics Strategies & Tactics Strategies & Tactics Strategies & Tactics

V&V V&V V&V V&V V&V V&V



Discover Define


1

2

4

3

Develop Deliver

Point of

View


Service Model Canvas – Service Blueprinting DEVELOP & DELIVER

*The Service Innovation Handbook

Segment?Pain Reliever and Gain

Creator


Operating Model Canvas DELIVER

How do you do it?VALUE STREAMS

Key Resources?PEOPLE

What will it cost?COST STRUCTURE

How do you do it?VALUE STAGES

What do you need?CAPABILITIES

Key Resources?PROCESS

Key Resources?TECHNOLOGY

Key Resources?INFORMATION

Key Resources?PARTNERSHIPS

Retire Right

Debt Free

Flexible and agile product delivery


EXPERIENCE

CAPABILITY

TECHNOLOGY

BU

SIN

ESS

VALUE

VALUABLE

MEANING

PROCESSEMPLOYEES INFORMATION

APPLICATIONS DATA TECHNOLOGY

CUSTOMER

PERFORMANCE

PROBLEMS PAINS / GAINS

SERVICE/S

VALUES

- Duration- Breadth- Interaction

- Intensity- Triggers- Significance

PRICE to EXCHANGE

PLACE to EVERYPLACE

PROMOTION to EVANGELISM

PRODUCT/S


Extending the definition of the capability CAPABILITY MODELLING


Value Stream / Capability Canvas DELIVER

OutcomeGoal / Objective

Performance CSF / KPI’s

Skills

Strategy / Tactic

Organization Units

Cultural Landscape

Process

Application

Delivery Vehicle

Information


Linking it together THE HYBRID PROCESS

Empathy MapDesign Principles

Value Model

Customer Profile

Problem Statement

Value PropositionCanvas

Business Model

Canvas

Business Motivation Model

Service Blueprint

Operating Model Canvas

Capability ModelScaled Agile Framework


The DesignChain Training Courses DESIGNCHAIN SERVICE OFFERING: TRAINING

Design in Business Course(Using design thinking to complement the other disciplines of analysis, architecture and planning, to help them be more human centred in their approach)

Business By Design Course(This course focusses on using the disciplines of Design and Architecture to create and test more innovative and disruptive business models)

*Richard Buchanan

www.designchain.co

Designing with AgileTM

(Using design thinking to be more human centred in thinking and approach. Blended with AgileTM to be more efficient and delivery centred)

DesignChain follows a blended approach to training with clients. We support the 70:20:10 approach to building capability and improving learning outcomes

In beta

Released

In alpha


Decide, adapt and grow faster

INSIGHTWhat we do: We provide insight into customers, disruptive and emerging trends, and how they might affect your customers and your organization.

How we do it: We use human centered design and market analysis tools to surface new insights and growth opportunities.

Outcome: You will have greater insight into hidden opportunity areas. You will have identified, and tested, growth and improvement areas. You and your organization will become smarter. You will be able to determine whether or not change is needed.

DESIGNWhat we do: We help you determine the most appropriate responses to change. We show you how best to mix your business resources to deliver the right value to your customers and your shareholders.

How we do it: We play out disruptive, strategic, tactical and operational prototypes across your business landscape, and test them against the right outcomes

Outcome: You will choose the strategic option that is best for your customer and organization, and reduce failure from misguided strategies.

DELIVERYWhat we do: We help more of your projects succeed and deliver tangible business outcomes.

How we do it: We do this by closing the gap between planning and results, and results and corrective action.

Outcome: This means that designed and planned results are more likely to be achieved, and the organization can make corrective changes sooner rather than later, preventing cost overruns and costly repeat decisions.

CHANGEWhat we do: We help you and your customers adapt to change more effectively.

How we do it: We influence the habits of your customers and staff through advanced behavioural methods and technologies.

Outcome: Improved employee engagement. Increased customer advocacy & lifetime value. Reduced cost-to-serve.

What we do DESIGNCHAIN