innovation, design thinking, and competitive advantage
TRANSCRIPT
INNOVATION, DESIGN THINKINGAND COMPETITIVE ADVANTAGE
Phil BarrettAssociate director, Deloitte Digital Africa
@philbuktoo
WORLDWIDE DIGITAL REVOLUTION
San Francisco Orlando
Denver
SeattleLos Angeles
Mexico City
Cape Town
Johannesburg
Washington DC
Toronto
Brussels
Amsterdam
Camp Hill
Sao Paulo
New York
Belfast
Edinburgh
Lisbon
Paris
Madrid
Zurich
Milan
Dublin
BengaluruDelhi
Mumbai
Hyderabad
Gothenburg
WarsawMunich
Łódź
Stockholm
London
Perth
Singapore
Luxembourg
Shanghai
Adelaide
MelbourneBrisbane
Canberra
Auckland
Sydney
Tokyo
Studio
Delivery CenterHub
24Countries
26Studios
5500+GlobalHeadcount
1100+USHeadcount
1500+US IndiaHeadcount
41K+APAC
71K+EMEA
89K+Americas
202K+Global
150+Countries
Deloitte Digital Footprint Deloitte Footprint
LOCAL SOUTH AFRICAN TEAM.
LOOKING AT PROBLEMS THE OTHER WAY UP
Amazon’s warehouse robots move the shelves to the packers. This
means no pickers, and a continually optimised storage layout.
The rate of change in technology is faster than it has ever been.
And it is increasing more steeply than it ever has.
IT’S EXPONENTIAL CHANGE.
Machine learning Genomics
Biometrics Internet of Things
Blockchain
Robotics3D Printing
Drones
VR
Wearables Connected Cars
Mobile
Analytics
Social
Cloud
Web
Content
EXPONENTIAL TECHNOLOGIESSuper Disruptors… Exponential Disruptors…
“Tim Brown, IDEO
Innovation has become nothing less than a survival strategy.
EXPONENTIALS DEMAND INNOVATION
INNOVATION: CREATIVITY IN THE SERVICE OF PROFITABILITY
Finding worthwhile new things to do.
Finding better ways to do what we already do.
10%
10x“Optimisation?”
“Disruption?”
“DISRUPTIVE INNOVATION: YOUR PERSONAL MONOPOLY
Creative monopoly means new products that benefit everybody and sustainable profits for the creator.
Competition means no profits for anybody…
Peter Thiel, Co-founder of PayPal
THE CORPORATE IMMUNE SYSTEM KILLS INNOVATIONDisruptive innovation jeopardises existing margins and the tried and tested recipe.
SO CORPORATIONS NEED STARTUPS • Invest to help grow promising businesses • Acquire successful new businesses • Partner to drive new thinking • Invent in their own innovation outposts • Incubate by supporting new businesses with resources
COMPLEX SYSTEMS ANDWICKED PROBLEMSMany systems, markets and organisations are beyond complicated - they are complex.
• A lot of diverse elements, interconnected.
• Unpredictable: Doing the same thing twice doesn’t necessarily get you the same result.
• Can’t be solved, only improved.
THE PEOPLE IN OUR COMPLEX SYSTEMS ARE EMOTIONALIdealised “econ”: Optimal decisions. Actual Human: Emotional decisions.
“FOR SUCCESS, INNOVATE CUSTOMER-FIRST
You’ve gotta start with the customer experience and work backwards to the technology.
Steve Jobs
DESIGN THINKING USES A STRUCTURED, HUMAN-CENTRED PROCESS
The “human-centred design” process (HCD).
EMPATHISE
DEFINE
IDEATE
PROTOTYPE & TEST
Diverge
Converge
Diverge
Converge
Ready to start….
KEY INGREDIENTS FOR DESIGN THINKING
Make things
Observe people
Test and improve
Collaborate
Think broadly, decide precisely
“Companies that use design strategically grow faster and have higher margins than their competitors.
Apple, Coca-Cola, Ford, Herman-Miller, IBM, Intuit, Newell-Rubbermaid, Procter & Gamble, Starbucks, Starwood, Steelcase, Target, Walt Disney, Whirlpool, and Nike…
Jeneanne Rae, Writing in HBR
DESIGN-LED COMPANIES ARE OUT-PERFORMERS
COST
WHY GOOD DESIGN MAKES SUCCESSFUL BUSINESSES
REVENUEDrive uptake Convert more new customers Keep customers with you Charge more for your products
Lower marketing costs Lower customer service costs Lower training costs Lower delivery costs Less wasted effort building the wrong stuff
SEE FROM THE CUSTOMER’S POINT OF VIEWTechniques: Immersive research, diaries, interviews with games and storytelling.
EMPATHISE
IDENTIFY THE PROBLEMS TO SOLVETechniques: Maps, models, stories, principles, problem statements.
DEFINE
THINKING DIFFERENT TO FIND NEW SOLUTIONSTechniques: CVP and ideation workshops, with tools to drive lateral thinking.
IDEATE
MAKE MOCKUPS AND TRY THEM OUTTechniques: Mockups of interfaces, artefacts and environments. User testing sessions.
MOCK & TEST
YOU HAVE TO DO IT WITH 110% CONVICTION• Immerse yourself: think in the shower.
• Face the discomfort of identifying problems with existing ideas.
• Keep practising: Just like for every new skill you want to truly master.
Flic
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DESIGN THINKING IS JUST THE STARTStage 3
SCALE AND EXTEND
Build and test to prove the right concept, target
customers, business
model…
Roll out to more users, and
roll out extended features
PRODUCT MARKET FIT
Stage 2
Human-centred design
Lean startup
Lean UX
Stage 1
DESIGN THINKING COMBATS POOR DECISION MAKING
Availability bias: Only consider what’s in front of you.
Confirmation bias: Look for information that confirms our beliefs.
Status Quo bias: Consider any change as a loss.
Discover new insights.
Try out new ideas and demonstrate their potential
Iterative testing, well defined target outcomes force you to face uncomfortable evidence.
“Assume that your strategy may be wrong.
Develop plans for learning what needs to be known - a much more effective way to confront disruptive technologies successfully.
Clayton Chistensen The Innovator’s Dilemma