GEMBA Innovation, March 2009 for the DESINOVA project
TOOLS FOR INNOVATION: A CHAPBOOK FIRST DRAFT This chapbook defnes, describes, and critques concepts, tools, and methods used in the related felds of innovaton and design. Dictonary.com defnes a chapbook as a small book or pamphlet of popular tales and ballads. What could be more appropriate to the needs of innovators and designers? Much of each practce innovaton and design is based on knowledge shared via professional grapevines which, if put it to music, would produce entertaining sagas. What follows, then is a collecton of our two professions current sagas sung in prose (the writen word). There are two major divisions to the topics described in this chapbook. One group of topics, Innovaton Tools, is widely used among innovators in business, public agencies, and third-sector organizatons. The other group of topics, Design Tools, is widely used among designers. Because the User-Driven Innovaton initatve brings together service organizaton innovators and designers (who may also be innovators), these terms are increasingly common to each profession. We encourage the use of shared meanings. They facilitate the innovaton process. There are 42 topics, one on each page, included in this version of the chapbook. One page, Innovaton, follows immediately. It is a model for the rest. It states the topic in the ttle at the top. In the lef column it defnes the topic and briefy describes its use. In the right column are pros and cons discussed in the literature. Below the columns is a one- or two-line descripton of the topic as it might be used in a DESINOVA project. At the botom are links to highly informatve references online, chosen to produce a balanced discussion of the topics signifcance and value. We intend to contnue to produce new pages. Please, feel free to contact us if you have relevant suggestons for new topics to be included you can visit us at www.gemba.dk or www.desinova.dk. The chapbook is produced in English because its author speaks English. However, many of the topics described in this chapbook have found their way into Danish, because (a) they are so new that for many, there may be no Danish antecedents; and (b) Danes are contnually reinventng Dansk by introducing new terms from other languages. Its a happy coincidence. If however, there are words in Danish that more accurately describe the topics contained in this chapbook, please tell us when this is the case. Beter yet, please supply us with entries in Danish and we will be glad to include them. However, ten of the most relevant methods for Danish service companies will be available in Danish. Robert Jacobson, PhD, GEMBA INNOVATION 03 Content INNOVATION AUTHENTICITY BLUE OCEAN STRATEGY BUSINESS INCUBATOR CO-CREATION CONTExTUAL INqUIRY CORPORATE NARRATIVE (BUSINESS STORYTELLING) CULTURAL PROBES CUSTOMER JOURNEY DESIGN COLLABORATORIUM DESIGNING fOR ExPERIENCE DIVERGENCE AND CONVERGENCE ETHNOGRAPHY HEURISTICS (DECISIONMAkING) IDEATION INNOVATION MANAGEMENT INTERACTION DESIGN LATERAL THINkING (SIx THINkING HATS) LEAD-USERS AND LEAD-USER PANELS MIND-MAPPING MORPHOLOGICAL ANALYSIS OBSERVATION/USABILITY LABORATORY (TESTING IN A CONTROLLED ENVIRONMENT) OPEN INNOVATION PARTICIPATORY OBSERVATION 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 04 CONTENT PATH DEPENDENCE PERSONAS PREDICTION MARkETS PROTOTYPING RADICAL INNOVATION ROLE-PLAYING GAMES SCENARIO PLANNING SERVICE DESIGN SkUNk WORkS * STAGE-GATE STRATEGIC PLANNING TRANSfORMATION DESIGN TREND ANALYSIS TRIZ USER INNOVATION VIRTUAL WORLDS AND MENTAL MODELS WEB 2.0 AND BEYOND WISDOM Of THE MASSES 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 05 INNOVATION Sample use by DESINOVA company: Like the World Bank, a large fnancial insttuton may want to initate a PM that indicates how fnancial markets and investment opportunites will develop, to educate its users with the caveat that its outcome may not bte the truth! htp://www.business.aau.dk/ike/ Aalborg University IkE Group (Innovaton, knowledge, and Economic Dynamics) website htp://www.innovatontools.com/ Innovaton Tools website (new website for business managers and executves) htp://www.businessweek.com/innovate/ Innovate, Business Week magazines regular secton on innovaton and design htp://www.foranet.dk/upload/hovedrapport_engelsk.pdf User-Driven Innovaton, EBST (Dk), October 2005 htp://hbswk.hbs.edu/ Harvard Business School Working knowledge website (with a strong emphasis on business innovaton) Links: Defniton: The central process of the User-Driven Innovaton project, innovaton is a mercurial subject. Its defnitons are many and diverse. They have a chicken-and-egg quality: for example, was the frst innovaton onscious thought or language that enabled it? Dictonary.com defnes innovaton alternatvely as something new or diferent introduced and the act of introducing something new or diferent. for our purposes, innovaton as used by organizatons is well defned by the ThinkSmart blog: People using new knowledge and understanding to experiment with new possibilites in order to implement new concepts that create new value. It may be a tautology, but innovatons are always created by innovators, individuals with the capability of thinking beyond the limitatons of given wisdom. Methods of innovatng may be learned, but the ability to innovate may be innate. Current Use: Innovaton is encouraged in almost every social setng except where social mores prohibit it (for example, religious dogma). Currently, innovaton is seen as one of the most important ingredients in the success of organizatons, the producer of solutons to problems that are not entrely understood or widely perceived; and the generator of opportunites that may not have existed before or that were not exploited. In industrialized and industrializing societes, innovaton is valued as a social asset that contributes to global compettveness and prosperity.
Pros: Innovaton enables organizatons of every size and type to positvely and favorably change the external environment or the organizatons ability to respond to the environment, including how other organizatons and individuals respond. It is essental to progress. It is popularly held that the more innovatve an organizaton or individual, the beter suited the organizaton or the person are to actng in the world and achieving success, however it is measured. In modern societes, where change is a constant, innovaton has no iconic downside: it is universally favored as a capability, act, or outlook that inevitably moves things forward. Innovators and designers working together can positvely change the world. Cons: Innovaton has downsides. An innovaton that is improperly conceived, only partally understood, or poorly tmed can have deleterious efects. for example, the internal combuston engine made a lot of sense when it was frst introduced, providing a way of taking chemical energy on the road to wherever it needed to be applied. Now we know that it also contributes substantally to climate change, the efects of which are stll unknown but generally considered dangerous. Also, in some situatons, innovatons that replace existng solutons for example, growing corn instead of natve grains can produce retrograde movement, substtutng novelty for traditon that may work beter. AUTHENTICITY Sample use by DESINOVA company: A retail company wants to sell gif packages that are authentc. It conducts historical and social research to determine what Danes think about food that makes some products authentc and others not, and designs new packages to ft. htp://en.wikipedia.org/wiki/Authentcity_%28reenactment%29 Authentcity (reenactment), Wikipedia (historical reenactments) htp://authentcitybook.com/ Website about the book Authentcity, by Joe Pine and Jim Gilmore (contains useful concept discussions) htp://www.youtube.com/watch?v=zh3R90HAyOq Authentcity, students short video monologue for kansas State University class htp://www.businessweek.com/innovate/content/may2008/id20080528_503953.htm How to Standt Out? Try Authentcity, Business Week, May 28, 2008 htp://www.hermenaut.com/ fake Authentcity, The Hermenaut Online, Issue 15 (click through to appropriate contents) Links: 06 Defniton: Traditonally, the public considered something authentc if experts certfed it as genuine or if was commonly thought to be real. (The Danish word for authentc is gte.) Today, when many things can be digitally or physically replicated or simulated, authentcity Is a quality claimed for many products, services, communicatons, and experiences. Marketng consultants advise their clients to speak authentcally to their audiences. Products are designed to appear authentc. Destnaton resorts and museums feature exhibitons and environments that are alleged to be authentc. Recently, Joe Pine and Jim Gilmore published Authentcity, a theoretcal and critcal review of the concept of authentcity in which they argue that authentcity is negotable: what is real and what is not, what is authentc and what is not, are all a result of formal and informal negotatons between makers and buyers. Current Use: Although its use seems to be abatng, authentcity was heavily applied to the descripton and promoton of types of foods, entertainments, and styles of clothing. As Pine and Gilmore point out, what has been important to consumers is that if a thing is claimed to be authentc, it must be. If, however, a thing isnt claimed to be authentc, but only appears to be authentc, consumers may accept it if the mimicry is accurate. further, if a thing is completely false and advertsed as false, but done well, it may achieve a new type of authentcity. Disneyland is considered the paragon of real/false inventons. Pros: Who can argue with authentcity? That which is old and tme-tested is clearly superior to its counterparts or so our cognitve machinery tells us. Thus, manufacturers, marketers, and retailers have invested a great deal of resources in the development, manufacture, marketng, and sale of products, services, communicatons, and experiences that embody in one way or another someones concept of what is authentc. When their point of view coincides closely with consumer attudes and preferences regarding things that are authentc, then the thing being invented and sold does well in the market. Most products do not atain this degree of excellence, whether as things that are genuinely authentc or as inauthentc things that nevertheless come across as good tries. Cons: Partal authentcity is an oxymoron (that is, a contradicton). Once a thing has perceptvely deviated from reality, it is no longer authentc. It is then only an approximaton of authentcity. Claiming or implying that it is authentc can backfre if the intenton is to present it as authentc as real. The larger problem with the authentcity paradigm is that authentcity may have nothing to do with a things appeal or appropriateness as a soluton to a customer need. In fact, the paradigm may not be a paradigm at all, but simply a marketng fad that recurs with regularity, recycled with each generaton as it harkens back to its roots. BLUE OCEAN STRATEGY Sample use by DESINOVA company: Currently, no DESINOVA companies have implemented the Blue Ocean Strategy, but BOS could prove useful especially when new products/innovatons are being conceived and then readied for implementaton. htp://www.blueoceanstrategy.com/ Ofcial website of the Blue Ocean Strategy inventors, book, and organizaton htp://www.valuebasedmanagement.net/methods_kim_blue_ocean_strategy.html Blue Ocean Strategy in a nutshell htp://en.wikipedia.org/wiki/ Blue Ocean Strategy, Wikipedia htp://www.slideshare.net/jayrobinson/blue-ocean-strategy-summary/ SlideShare visual presentaton of the Blue Ocean Strategy Links: 07 Defniton: In a Harvard Business Review artcle published in 2004, INSEAD professors W. Chan kim and Rene Mauborgne introduced the term Blue Ocean Strategy (BOS) to summarize a decade of research on business success. In 2005, they published a book of the same name that achieved business bestseller status. The Blue Ocean Strategy is a branded, atractvely packaged collecton of kim and Mauborgnes recommendatons for business success. Briefy, it defnes two regions in which businesses can choose to operate: Red Oceans crowded with compettors, bloodied by energy-sapping confict; and calm Blue Oceans without compettors. A blue ocean is created when a company achieves value innovaton that creates value simultaneously for both the buyer and the company. The innovaton (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminatng features or services that are less valued by the current or future market. Current Use: Popular to speak about, BOS adopton by business appears sporadic (in part because many companies implement some BOS features and not others). Also, because BOS incorporates elements of other popular business practces, a company may be implementng the BOS but not know it. However, some large corporatons, like koreas diversifed manufacturer LG, have praised BOS positve efects on their plans and external and internal operatons. Pros: BOS can be seen as a new management approach to change the business core and model for a company. In additon, the value of non-customers is appreciated as a mean to expand the market base. BOS contains a roadmap for assessing a company and its present business and the logic it is based on. Its partcular interestng for mature companies with the need for restructuring its compettve base. BOS includes a number of specifc methods and techniques for evaluatng current product and value propositons, such as the strategy canvas, four actons framework etc., which might be adopted by business executves, consultants and agencies. Cons: According to Wikipedia, It is argued that rather than a theory, Blue Ocean Strategy is a successful atempt to brand a set of already existng concepts and frameworks with a highly stcky idea. The Blue Ocean/Red Ocean analogy is a powerful and memorable metaphor [that] can be powerful enough to stmulate people to acton. However, the concepts behind the Blue Ocean Strategy (such as the competng factors, the consumer cycle, non-customers, etc.) are not new. The most obvious weakness of BOS is it does not say where or how to fnd Blue Oceans. Every company is limited by its won accumulated learning and knowledge and cannot escape its own destny. One needs other methods perhaps open- source innovaton to look for and fnd Blue Oceans. BUSINESS INCUBATOR Sample use by DESINOVA company: DESINOVA companies by defniton are not startups or early-stage companies; hence, they are not clients of business incubators. However, its possible that a DESINOVA company might want to spin out one of its units that could then become a business incubator customer. htp://ec.europa.eu/enterprise/bi/index.htm Business Incubators Database, European Commission, Dec 11, 2003 htp://en.f.dk/publicatons/publicatons-2007/exploring-best-practses-in-incubaton-in-europe-and-israel/?searchterm=incubators, Exploring Best Practces in Incubaton in Europe and Israel, Danish Agency for Science, Technology & Innovaton (fIST), April 16, 2007 htp://www.nbia.org/resource_center/what_is/index.phphtp://www.nbia.org/resource_center/what_is/index.php What is Business Incubaton? U.S. Natonal Business Incubaton Associaton, 2009 htp://www.edn.com/index.asp?layout=artcle&artcleid=CA6479855 Report from Europe: Incubators hatch small successes, Drew Wilson, Electronic Business, Sep 27, 2007 htp://www.btds.biz/ New Venture Creaton and Sustainable Development, Business & Technology Development Strategies LLC, New York Links: 08 Defniton: A business incubator is an insttuton ofen a laboratory or research center set up to nurture startups and early-stage companies, thus improving their chances of surviving and growing. This focus on startups and early-stage companies distnguish incubators from general research parks. Incubators are ofen publicly fnanced. They include public R&D centers; self-standing nonproft companies; university R&D units; corporate divisions responsible for commercializing technology and spinning of new companies. A company usually is resident in an incubator from six months to one or two years. In additon to providing inexpensive accommodatons and shared ofce services, incubators ofer entrepreneurs business training, expert advice, techniques of innovaton, and preparaton for fundraising; they seldom provide investment capital but have close relatons with VCs and other sources of capital. In Denmark, Vkstonden, a public agency, acts as an incubator VC. It funds startup and early- stage companies that survive a rigorous competton. Current Use: Today, most industrial natons provide incubators for local startup and early-stage companies, though never enough. Demand greatly outstrips supply. In Denmark, there are many business incubators; most are afliated with universites and research parks. Among the best known are NOVI, Symbion judged the worlds best incubator in 2005 CAT, and the new Medicon. The resund Region is rich in incubators including those in Malm and Lund. MINC is a well-known incubator in Malm that serves startups and early-stage companies working on both sides of the resund. The economic downturn hurts incubators: scarce capital keeps their companies from leaving. Pros: Its claimed by business incubator directors and incubator advocates that startups raised in incubators have a much greater survival rate (almost 100% beter) than startups that to go it alone. Its certainly true that incubator- nourished company executves are more sophistcated when dealing with VCs, corporate venture managers, and potental business partners. Incubators provide a valuable service to the founders and executve ofcers of startups and early- stage companies: peer support. founders and CEOs regularly report that social companionship with their peers is as valuable to them personally as the technical and instructonal benefts of incubator residency are valuable to their companies. Presumably this results in beter performance and in turn, business success for these executves and their companies. Cons: It has never been established that business incubators provide satsfactory fnancial or social ROI. Its difcult to know whether companies actually do beter or not for having spent tme in incubators. There are many ways of measuring success and equally, many diverse paths that companies can take on graduatng from a business incubator. Correlatng the two to determine the value of incubators is nearly impossible, especially when other variables are factored in. VCs and other investors are divided regarding the value of business incubators. Many VCs appreciate the ease of access that incubators ofer to potental funding vehicles. Others believe that residency in an incubator weakens a startup or early-stage company by keeping it dependent on the incubator. Also, they claim, companies remain in incubators too long for the same reason that some students remain in school too long: to avoid competng in the real world. Co-Creation Sample use by DESINOVA company: Over a period of years, a company has spent years cultvatng co-creatonists as an actve part of its organizaton. In turn, the co-creatonists funnel into the company a stream of innovatve thoughts and insights. htp://www.12manage.com/methods_prahalad_co-creaton.html Co-creaton, from Pk Prahalad and Venkatram Ramaswamy, 12 Manage / Executve fast-Track website htp://masscustomizaton.blogs.com/mass_customizaton_open_i/cocreaton/index.html New Blog on Mass Customizaton and Rapid Ranufacturing,Mass Customizaton and Open Innovaton blog, March 31, 2008 htp://www.wikinomics.com/blog/index.php/tags/customer-co-creaton/page/2/ Is PlayStaton opening up their home? Don Tapscot, Wikinomics blog, March 2, 2007 htp://people.ischool.berkeley.edu/~hal/Courses/StratTech07/Tech/Preso/E-cocreaton.doc (download), Business Models of co-creaton, iSchool, University of California, Berkeley Links: 09 Defniton: Co-creaton is the process by which two or more agents work together to create something. In the case of innovaton and design, it is the process of business innovators or designers working together with users or their advocates to specify desired products and services. Co-creaton sums up many diferent innovaton-related methodological streams that place the user in the center of things and make the user a principal actor. This is especially true of those streams that have democratzaton of innovaton and design as a principal goal. Current Use: Despite the atenton given to co-creaton in business textbooks, among innovaton theoretcians, and prescriptve research outcomes, in fact it is a business practce honored more ofen in the breech than in the barrel. There are two reasons for this: (1) There are few (and there may be no) co-creaton experts in each geographical locale and (2) larger organizatons dont really like to share customer informaton with their supply chain companies, the small-business community, and government agencies. Pros: Co-creaton is democratc. It recruits every available person into the research, design, and development of innovatve product and service oferings that will be pitched to the co-creators. Co-creaton enables many points of view to be gathered, displayed, and analyzed in an easily analyzed framework. Co-creaton is the ultmate expression of user- driven infuences. It relies on prior educaton of everyone in the development chain and theoretcally should result in alignment of all partcipants on common goals. In this sense, it is deeply transformatve. Cons: Its impossible to hear or use the term co-creaton without recalling the Biblical story of the Creaton problems associated with co-creaton: Grandiose expectatons. Co-creaton ideally would lead to a quantum leap soluton: absolutely new, a true creaton. But more ofen, it results in refnements to existng solutons. Partcipatng in co-creaton is costly in terms of tme and emotons, and can result in shared biases. If the results are trivial and expectatons for a dramatc change are not met, its unlikely that co-creaton for that purpose will happen again. Co-creatons promises are stll largely hypothetcal. CONTEXTUAL INQUIRY Sample use by DESINOVA company: Antcipatng the design of a new cellphone interface, researchers sit down with representatve prospectve end users and go through the various processes of using the interface under specifed conditons. htp://en.wikipedia.org/wiki/Contextual_inquiry Contextual Inquiry, Wikipedia htp://en.wikipedia.org/wiki/Contextual_design Contextual Design, Wikipedia htp://www.deyalexander.com/resources/uxd/contextual-inquiry.html Contextual design and feld inquiry, Dey Alexander Consultng website htp://www.boxesandarrows.com/view/remote_contextual_inquiry_a_technique_to_improve_enterprise_sofware Remote Contextual Inquiry, Lynn Rampoldi-Hnilo and Jef English, Boxes and Arrows website, 19 April 2004 htp://wiki.fuidproject.org/display/fuid/Contextual+Inquiry+Overview Contextual Inquiry Overview, fluid Project wiki Links: 10 Defniton: Contextual inquiry is a formal term for a simple process in which most designers engage as a mater of course. To quote Wikipedia, Contextual inquiry is a user-centered design (UCD) method, part of the contextual design methodology, that happens up front in the sofware development lifecycle. It calls for one-on-one observatons of work practce in its naturally occurring context. During or afer the observatons, discussion ensues wherein users daily routnes or processes are discovered so that a product or website can be best designed to either work with the processes or help to shorten or eliminate them altogether. Current Use: Contextual inquiry, in which the researcher assumes the role of student to the prospectve end user, is widespread. This is partcularly true where engineering alone may not produce a usable product or service:, especially when a new category of product or service is being designed. Examples of its use include the design of new types of cellphone interfaces, vehicles that are novel and unprecedented, systems for the delivery of services that were unavailable before, and so forth. Most user-centered designers employ some sort of contextual inquiry in the process of design. Pros: Contextual inquiry locates the researcher as close to the use process as is possible. It results in potentally deep insights that would not be available through either simple observaton or reliance on synthetc users like personas. Contextual inquiry also creates a bridge to ethnographic techniques that collect informaton based on cultural norms and social behavior. This design methodology is a perfect complement to ethnographic methods, making good use of ethnography in ways proven to have positve results. Cons: Prospectve end users dont have all the answers. As with other forms of research that rely on user accounts and experiences, there is a basic vulnerability to the imperfect knowledge that end users have about the way in which new products and services ultmately will be used. Outside the laboratory, people are endlessly creatve and always fnd new uses of products and services unantcipated by their creators, ofen transforming them into virtually new products and services based on the actual contexts not the projected contexts within which the products and services are used. Contextual inquiry can lead researchers astray because, on its face, it may appear impervious to challenge. CORPORATE NARRATIVE (Business storytelling) Sample use by DESINOVA company: A manufacturing company encounters a problem with interdepartmental coordinaton. Using corporate narratve techniques, the departments discover many diferent stories in efect. They then sttch together a collectve story that explains why coordinaton is poor and how to improve it. htp://www.anecdote.com.au/index.php Anecdotes vast archive of knowledge and yes, stories about corporate narratve htp://www.makingstories.net/narratve_leadership_by_David_fleming.pdfNarratve Leadership, Dave fleming, 2001 htp://www.fastcompany.com/blog/seth-kahan/leading-change/organizatonal-storytellers-take-economy-focus-innovaton-hyper-produ/fast Company, Organizatonal Storytellers Take on the Economy - focus is Innovaton, Hyper-producton, feb 23, 2009 htp://www.astoriedcareer.com/svend-erik_engh_qa.html A Storied Career, Svend-Erik Engh: q&A htp://www.amazon.com/Ugly-Duckling-Goes-Work- Workplace/dp/0814408710/ref=sr_1_8?ie=UTf8&s=books&qid=1236216889&sr=1-8 The Ugly Duckling Goes to Work: Wisdom for the Workplace from the Classic Tales of Hans Christan Andersen, Mete Norgaard and Steven Covey (AMACOM, 2005) Links: 11 Defniton: Corporate narratve or storytelling is one way to discover what may be a hidden truth but of greater value, what people in an organizaton believe and what drives them. Human communites preserve their most precious knowledge as stories and myths or sagas. Myths or sagas are fundamental and long-lastng. They prescribe proper social relatonships, social mores, and values to which everyone in the community must adhere. Stories tend to be more immediate, short-term, and partcular to the topic or event to which they relate. In a guided session, individuals and group stories are collected, analyzed, and interpreted to give a state-of-the-company overview. When guided methods are unavailable, an investgator can conduct interviews and examine records, press accounts, and publicatons to reconstruct prevailing stories that can then be used to inform innovaton and change processes. Current Use: Storytelling is ancient. Today, in most cultures, it is relegated to writers, artsts, and performers, although skilled teachers also use storytelling to educate in a lastng way. Corporate narratve professional analysis of myths and stories to understand prevailing cultures and relatonships in companies is more recent. Many professional innovaton and change-management frms now use corporate narratve as an essental component of transformatonal innovaton and planned change. Practtoners in the feld defne corporate narratve and storytelling as group processes of discovery and afrmaton, respectvely. Pros: Everyone likes to talk about themselves, their lives, and their challenges. Corporate narratve is a popular and enjoyable way to get people to divulge their personal stories, in partcular those that pertain to the company, and to invent new stories that may be equally revealing and valuable. Under managed conditons, corporate narratve is a safe way to express praise for a coworker, ideal goals, dissatsfacton with a situaton, or a new way of doing things all expressions that are difcult to make in other public situatons. Storytelling in Denmark and the Nordic countries is well developed as an educatonal tool and experts are available to help in business situatons. Corporate narratve is democratc in its practce. Cons: Observing a storytelling session, a more sober manager might inquire, What for? He or she might note that the company informaton environment is already saturate with word-of-mouth chater and gossip. Is it really productve to add to the load? Also, corporate narratve takes tme of the job whether in a group setng or during a one-on-one interview. There is a sort of euphoria associated with storytelling and story-listening that feels transformatve but its efects may last only days or hours before mundane events bury the sense of accomplishment. The largest barrier to corporate narratves broad acceptance, however, is a factor of its success: too many diferent practtoners, each with his or her own style, making quality control difcult. CULTURAL PROBES Sample use by DESINOVA company: In preparaton for the development of new communicaton services, a transport company conducts Cultural Probes to see which services its customers will adopt early, and which later on. www.alistapart.com/artcles/culturalprobe Inside Your Users Minds: The Cultural Probe, Ruth Stalker-firth, A List Apart No. 234, March 27, 2007 www.sfu.ca/~benn/iat333/DESIGNING%20A%20CULTURAL%20PROBE.doc Designing a Cultural Probe, Derek Pante et al, Simon fraser University (Britsh Columbia), January 15, 2008 htp://www.steptwo.com.au/columntwo/archives/002816.html Cultural probes for intranet user research, Column Two blog, April 8, 2008 htp://portal.acm.org/citaton.cfm?id=1228219 Moving from cultural probes to agent-oriented requirements engineering, Anne Boetcher, University of Melbourne, ACM Series on Internatonal Conferences, 2006 Links: 12 Defniton: Cultural Probes have an antecedent everyone recognizes: The treasure hunt game. In the game, players are instructed to fnd certain hidden items in a locaton. Usually, they have to navigate to that locaton frst, which is key to discovering the items. A Cultural Probe is like an open-ended treasure hunt: Users of a product or technology are given instructons, and ofen actual packages of devices (like a voice recorder), and told to explore the environment in which they live and work, where the innovaton being developed will be employed. Individuals are usually required to keep a diary in order to accurately record each discovery emotonal and intellectual, as well as physical that is relevant to the innovaton. Afer suitable tme has elapsed, probers are called together to report their fndings. Current Use: Cultural Probes by other names have always been popular ways of surveying the social landscape in which products and services must survive and thrive. Now that they have a formal name and a growing methodology, Cultural Probes are becoming uniform and thus scientfcally more reliable. The so-called ITC industries IT and communicatons are heavy users of Cultural Probes. Pros: A Cultural Probe theoretcally can detect phenomena that ordinary ethnography or trend analysis might miss. It is a more focused approach, but its main value-add is that the user is the researcher and is accountable in both roles to the development or design team. Rather than deal in gross generalizatons, a prober can be very narrow and precise defning the cultural milieu in terms of his or her own experience only. This may be considered a more scientfc way of collectng cultural informaton than less fne-grained methodologies like the various tests and elements in conventonal market research. Cons: What knowledge exactly does a Cultural Probe produce that cannot be goten some other way? The very defniton of a Cultural Probe is so loosely drawn that virtually anything that the prober brings back can be purported to have some sort of value. Then the act of interpretaton can become (a) mystcal, because there are no hard and fast rules; and (b) overwhelming, since the number of possible relevant interpretatons is large and in some cases nearly infnite. A Cultural Probe absolutely sensitzes researchers to the complexity of the social milieu facing a new product or service, but is this news? CUSTOMER JOURNEY Sample use by DESINOVA company: Looking to introduce a new line of outdoor apparel with a new brand, a company asks prospectve buyers and surrogates (individuals with desired characteristcs) to go through the process of defning their needs, and fnding and buying the product. Their reports become a journey map. htp://www.cabinetofce.gov.uk/public_service_reform/delivery_council/cjm.aspx Uk Cabinet Directve, Customer Journey Mapping, feb 6, 2009 htp://www.mycustomer.com/cgi-bin/item.cgi?id=133150&d=101&h=817&f=816 Improving the Customer Experience, MyCustomer.com, Jul 31, 2007 htp://www.livework.co.uk/our-work/danish-rail Danish Rail Service Usability: Mapping the passenger experience from A-Z, live|work, Nov-Dec 2007 htp://www.searchenginejournal.com/tracking-practcal-kpis-with-web-analytcs/5755/ About online customer journeys, Search Engine Journal, Oct 3, 2007 htp://www.slideshare.net/whatdiscover/customer-perspectves-on-service-innovaton Slideshow, Customer Perspectves on Service Design, Peer Insight, Oval, Swisscom Mobile, and Hewlet-Packard, Innovaton in Services Conference, Apr 7, 2007 Links: 13 Defniton: Customer journey is a spatal metaphor describing the customers mental and emotonal process from the state of becoming aware of his or her need or want to the moment at which he or she purchases the product or service. Sometmes it includes the customers use of the product, the experience induced by using it, and the afermath: whether the customer repeats the purchase and use of the product or decides to purchase or use another product. These internal events, diaried by the customer, can be mapped to represent (a) the process itself and (b) all of the other factors in the environment bearing on the customers decisions. This map is the customer journey. In a sense, it is the reciprocal or matching opposite of a customer experience design. When well done, the customer experiences design at each touch point direst the customer on the desired journey, toward a purchase. Current Use: for years, advertsing frms and retail stores have mapped customer journeys in order to establish the proper force and structure of an argument to buy their products. How does the customer encounter the product and then what? Research survey, focus group, secret shopping, and so forth provides data to build an inital map and then refne it. In the case of innovaton within a company, the customer journey may have another use: to map managements response to a demonstrated needed change or new development (a product or process) and its soluton, the innovaton. Such a strategic use can be extended to project innovaton acceptance throughout the company and among the companys customers. Pros: Mapping a customer journey is a valuable discipline: it totally focuses the experience designer on the customers thought processes and emotons, creatng an empathy with the customer that less intmate types of research cannot. The mapmaker is working with the actual customer events as writen down or verbally reported by the customer, not a researcher. The customer can critque the journey map while it is being made or later, adding nuanced descriptons of his or her thoughts and emotons as they occurred and as they are remembered -- two diferent sets of impressions! This level of understanding is ofen unatainable using other methodologies. Because customer journey maps are usually graphical, they are easily understood across disciplines. Comparisons among diferent maps are easy. In a company, internal customers maps, although not common, would be useful for determining the right strategy for promotng a desired innovaton, at introducton and later during implementaton. Cons: One customer does not an audience make. Many maps must be constructed to arrive at a sufciently general rule to guide development of a product and its introducton to the market, or an innovaton in a company. Because customer journey mapping is proprietary, each method is unique; comparability of maps from maker to maker isnt easy. The same is true of the research that goes into producing customer journey maps. It varies widely, in part depending on the extensivity of the journey space defned by the researchers and how many factors are identfed and associated with each customer event. It may be difcult to give each event the same atenton, in which case it may become the weakest link. Links: DESIGN COLLABORATORIUM Sample use by DESINOVA company: Business planners within a company partcipatng in a Design Collaboratorium makes a market challenge seeks suggestons from the DC for how to meet the market with new products that meet usability standards. htp://www.mci.sdu.dk/m/Research/Publicatons/UCD/fROMUSAB.DIS.fINAL.PDf from usability lab to design collaboratorium: Reframing usability practce, Jacob Buur and Susanne Bdker, Mads Clausen Insttute, SDU, 2002 htp://www.nwow.alexandra.dk/publikatoner/NordiCHI2000.pdf Ethnographic feldwork under industrial constraints: Towards Design-in-Context, Werner Sperschneider and kirsten Bagger, Mads Clausen Insttute, SDU htp://www.tmeshighereducaton.co.uk/story.asp?storyCode=400612§oncode=26 Research Collaboraton, Harriet Swain, The Times Higher Educaton, 14 february 2008 htp://libra.msra.cn/paperdetail.aspx?id=902647 Understanding experience in interactve systems, Jodi forlizzi and katja Baterbee, ACM Conference on Interactve Systems, 2004 14 Defniton: Designers will recognize the Design Collaboratorium (DC), a general model for product and service innovaton, as a variaton on the complex integrated industrial design methods. The DC is unique because it is applying integrated design practces beyond the confnes of design per se and has been enlarged to include disciplines beyond design including systems theory, usability methodologies, user partcipaton in design, and psychology. The DC is a Danish inventon unitng the development laboratories of Bang & Olufson, Danfoss, and kommunedata; and the University of Aarhus in a common efort to perfect integrated, multdisciplinary methods of creatng complex new products. Current Use: One DC currently exists, in Denmark. But analogues exist in other natons in the form of inter-laboratory consortums and technology centers. The Danish DC, however, is more self-conscious and self-analytcal than the other collaboratons, which evolved as a mater of fact in response to need. The emergence of new DCs may wait on proof that the Danish DC is efectve and that the benefts for the three companies and the university exceed their investment. Pros: In principle, the more points of view and professional evaluatons that can be brought to bear on a problem, the beter the eventual soluton that results. The DC defnitely meets the test of variety. At the very least, it is sowing awareness of the nature of complex problems and what each of the contributng disciplines ofers for the soluton of those problems. In the ideal case, the DC will spawn new product and service concepts and possibly actual products and services that are well suited to the business environment and future markets out of the gate. If it contributes to the top-line of its sponsor/partcipants that is, if it results in new lines of revenue it may be judged a success. Cons: Collaboraton within the same profession is difcult enough; across disciplinary boundaries and companies in diferent lines of business, the DC becomes its own case study in dealing with complexity. The physical infrastructure of the DC is modest, but the social organizaton is demanding. A problem common to similar collaboratons is the resistance that partcipatng organizatons ofen have to sharing IP, let alone products that may result. DESIGNING FOR EXPERIENCE Sample use by DESINOVA company: A retail client wants to alter its customer base radically, from older to younger and from men to women. To do this, it needs to totally repositon its brand. It initates a DfE program to totally revamp its customer experience. htp://www.techgnosis.com/experience.html Experience Design and the Design of Experience, Erik Davis, 2001, Techngnosis htp://en.wikipedia.org/wiki/Experience_economy Experience Economy, Wikipedia htp://en.wikipedia.org/wiki/Experience_design Experience Design, Wikipedia htp://www.businessweek.com/innovate/content/apr2008/id20080411_491286.htm Its All About Experience, Sourab Vossoughi, Business Week, April 11, 2008 htp://www.dux2007.org/ DUx 2007 (Design for User Experience) website, conference held November 2007 Links: 15 Defniton: Designing for Experience (DfE) is the preferred term-of-art for the practce of cratng and assembling holistc compositons of experiences. A company or agency produces scored arrangements of experiences also called touch points to persuade, provoke, and most importantly, initate desired behaviors among key stakeholders (most ofen today, infuencing buying decisions among business customers and politcal acton or its lack among citzens). This meta-practce subsumes design disciplines, environmental psychology, landscape architecture, theme-park development and tourism, media of all types, and persuasive disciplines including advertsing and public relatons. Interest in DfE crystallized afer publicaton of The Experience Economy by Jim Pine and Joe Gilmore in 1996 and has steadily increased. Current Use: DfE is a very new practce. Most writng about DfE usually traces it back to 1955, when Imagineering interdisciplinary design was use by Walt Disney and his team to create a totalistc immersive experience, Disneyland, evocatve of certain Disney themes and commerce. (The even older Tivoli was a major inspiraton for Walt Disney.) Because of the felds youth and because DfE designers prefer to remain in the background, case studies of DfE are rare; but hiring paterns and press accounts suggest a coming food of applicatons. Pros: DfE is the other side of the human-centric design coin. It posits that the external environment experiences that individuals have that are not ted specifcally to a product or service may be as determinatve of their behavior as are experiences ted to specifc products and services. DfE strives to create a contnuous experience of the sponsor within the mind of the customer or citzen, at least when it comes tme to act favorably, in the interests of the sponsor. In that case, it is incumbent on designers to help craf environments that by engendering experiences, induce acceptance of innovatons and their sound use. DfE, it is claimed, will have great power as methods for composing successful scores become beter known and implemented. Cons: DfE today is ill-defned and can mean many things ranging from the development of destnaton resorts (including whole natons, like Dubai) to the design of interactve websites. As DfE case studies are few, its impossible to validate the claims of DfEs) supporters. The constructon of full-blown DfEs may prove difcult as individuals and whole societes alter their attudes and behaviors in response to unplanned for experiences like climate change and the skyrocketng price of petroleum-based fuels. That may be like shootng at moving targets from a platorm that is itself moving in response to change. DIVERGENCE AND CONVERGENCE Sample use by DESINOVA company: An ideaton process initated to identfy new product innovatons is tme-limited by the session manager to maintain predetermined tme proportons for inventon (divergence) and synthesis (convergence), thus resultng in a fnite, manageable number of innovatons to be tested. htp://changingminds.org/explanatons/decision/divergence_convergence.htm Divergence and Convergence, ChangingMinds.org, 2009. htp://designthinking.ideo.com/?tag=divergence-and-convergence What does design thinking feel like? Tim Brown, Design Thinking, Sep 7, 2008 htp://www.innovatontools.com/Artcles/ArtcleDetails.asp?a=152 Creatvity made simple: Divergence and Convergence are critcal to successful ideaton, Joyce Wycof, Innovaton Tools, Aug 19, 2004 htp://en.wikipedia.org/wiki/Convergent_and_divergent_producton Convergent and divergent producton, Wikipedia htp://chriscorrigan.com/parkinglot/?p=1265 Divergent and convergent thinking, Chris Corrigan, Mar 10, 2007 16 Defniton: Brainstorming and similar group ideaton processes ofen produce storms of inventve ideas, because of the diversity of partcipants. This proliferaton of ideas Is called divergence. Most of these ideas are diferent from one another. If each of these divergent ideas had to be investgated and for each a separate conclusion drawn, the group leaders and ideators would be unable to get much work done except to plow through the inital bursts of brilliance! fortunately, there is a countervailing mental and social phenomenon, convergence that seeks closure and then fuses ideas, reducing the sheer number of ideas to a manageable fow. The complementary processes of divergence and convergence make it possible to economically ideate and evaluate at the front-end of innovaton. Current Use: Divergence and convergence are normal processes of human discourse and decision-making. for decision-making to be efectve, the two processes must be balanced which means having an ideaton group or populaton that also is balance between those who favor divergent, inventve thinking and those who favor convergent, consolidatng thinking. Here is what to look for, from ChangingMinds.org: Some people prefer diverging, as it means the potental of a wrong decision is never reached. These people ofen have a preference for perceiving. People who rapidly seek convergence ofen have a preference for the structure of judging. ZING and similar ideaton technologies enforce a divergence-convergence back and forth among brainstorming partcipatons. Pros/Cons: There are no pros and cons for divergence and convergence, though, in order to be successful, an ideaton process needs both in proper proporton. Adjustng the proporton correctly requires the ideaton session manager to know when to signal its tme for the group to reverse its feld, from divergent thinking to convergent thinking; or at least, to consider when to do so by consensus. Links:
ETHNOGRAPHY Sample use by DESINOVA company: Like the World Bank, a large fnancial insttuton may want to initate a PM that indicates how fnancial markets and investment opportunites will develop, to educate its users with the caveat that its outcome may not be the truth! htp://www.antropologi.info/antromag/corporate/ Special Report on Commercial Anthropology, Anthropologi.info website htp://www.practcinganthropology.org/ Natonal Associaton for the Practce of Anthropology (NAPA) website htp://www.epic2008.com/ EPIC 2008 (Ethnographic Praxis in Industry Conference) taking place in Copenhagen in October 2008 htp://www.anthro-phd.dk/ Danish Research School of Anthropology and Ethnography (CU and U of Aarhus) website htp://tech.groups.yahoo.com/group/anthrodesign/ Anthrodesign newsgroup (spirited discussion of ethnographic issues) Links: 17 Defniton: TBroadly speaking, and expanding on Wikipedias stlted descripton, ethnography is a genre of research and reportng that uses feldwork to provide a descriptve study of human societes. Ethnographic practce is derived from cultural and social anthropology, social sciences with reasonably deep roots. The frst ethnography, in fact, may have frst occurred in prehistoric tmes, when travelers made notes on communites they encountered, their mores, and their peoples behaviors. Modern ethnography is a relatvely young profession most of its practtoners stll are trained as anthropologists and the applicaton of ethnography for commercial purposes more recent stll. In fact, commercial ethnography is stll in formaton with an incomplete theoretcal base and canons and practces that are highly relatvistc. In the USA, there is constant talk of a split between the establishment, mostly academic American Anthropological Associaton (AAA) and commercial ethnographers, a debate mirrored in other natons. Current Use: Ethnography is enjoying a global springtme of new opportunites in companies and public agencies as executves and managers seek beter insights into new markets and their customers behaviors, wants, and needs. The use of ethnography in the development of new informaton services and telecommunicatons (ITC), for example, is coterminous with the emergence of the Internet and wireless services as dominant technologies for sharing informaton. Pros: Ethnography is inherently human-centric. It points innovators and designers to user-directed applicatons of technology and technique to serve peoples needs and solve societal and environmental problems. Its methods place human beings frst and foremost as the benefciaries of wise innovatons and the victms of innovatons (or lack of innovaton) that have negatve consequences. Ethnography is gradually coming to terms with its lack of a coherent theoretcal base and is developing canons to ensure ethical practces, although their enforcement is currently ad hoc. Ethnographers bring a new way of looking at business and civic issues that challenges traditonal mechanistc planning and policymaking. In the coming years, ethnography may enlarge the societal conversaton about what is important and what priorites need to be served. for innovators, ethnography can suggest new user-directed innovaton methods; and for designers, it can generate new insights for product and service use, and useful constraints. Cons: Ethnographys value outside of social science remains to be proven; so far, most accounts of its value are anecdotal and unquantfed. As a result, in business partcularly, ethnographic research may be funded but its fndings are ofen discounted or ignored entrely. Ethnography introduces a new politcal pole that can be used to distort or defeat innovaton as a process. Commercial ethnography, responding to the market, ofen resembles market research; its ethics remain murky. HEURISTICS (DeCisionmaking) Sample use by DESINOVA company: Business developers contemplatng a new line of retail services applies the recogniton heuristc to sort through various possible service alternatves and paths to them, eliminatng those that resemble past failed atempts. htp://en.wikipedia.org/wiki/Heuristc Heuristc, Wikipedia htp://tnyurl.com/5jjamp Heuristcs and Biases: The Psychology of Intuitve Judgment, T. Gilovich et al (Google Books website) htp://gilovich.socialpsychology.org/ Dr. Thomas D. Gilovich, Professor, Cornell University, Social Psychology Profle (includes citatons) htp://hbswk.hbs.edu/item/5423.html Managers Heuristcs, R&D Performance Volatlity, Harvard Business School Working knowledge htp://www.edit-work.com/framework.pdf What Drives Innnovaton? A Heuristc framework for Corporate Innovaton, Decision Analyst Links: 18 Defniton: Heuristcs is the term of art used to describe human processes of making decisions and learning that are informal and also the psychological and cognitve science that studies this process. A heuristc is a specifc informal method, ofen unique to an individual but more frequently, employed by most human beings who, afer all, share physiologies and cultural styles. These are common heuristcs from George Polyas 1945 classic, How to Solve It, cited in Wikipedia: Look to the unknown. If you are having difculty understanding a problem, try drawing a picture. If you cant fnd a soluton, try assuming that you have a soluton and seeing what you can derive from that (working backward). If the problem is abstract, try examining a concrete example. Try solving a more general problem frst (the inventors paradox: the more ambitous plan may have more chances of success). Current Use: Heuristcs are part of everyones daily experience. They are a universal alternatve to formal, logical methods of solving problems and innovatng. In additon, heuristcs play a large role in computer programming, design and engineering, and usability testng (also called heuristc evaluaton). Innovators make intense use of heuristc algorithms; this may be one of their defning characteristcs. Pros: Heuristcs are a part of everyday life. Individuals use them to solve problems for which they havent the knowledge or tme to apply more formal logical methods. In many cases, the heuristcs are a more efcient and even more accurate way of determining the best soluton for a problem (including devising innovatons for problems that the individuals have not encountered before). Because most heuristcs are psychologically hard-wired or learned as part of the process of socializaton, groups can share heuristc methods to apply many minds to solving common problems and in the process, learning together what works. A trained decision maker can thus pick and choose among personal heuristcs, or others that have been described, to create a heuristc toolkit appropriate to the problem or problems at hand. Cons: IEach persons heuristc inventory is unique. It contains personal and collectve biases. Working on a common problem, team members may have to work hard to arrive at common understandings. Heuristcs-based decisionmaking is that it is sometmes difcult for individuals to describe for colleagues how they came to a conclusion, since heuristcs are informal and the language used by each person to describe them if they can even recall them afer reaching a soluton will vary. The informality of heuristcs means they cannot be translated into arithmetc, which means they do not lend themselves to quanttatve evaluaton although their solutons may. IDEATION Sample use by DESINOVA company: Using ZING (see link below) to speed the process of ideaton, a team of designers and business innovators from a leading infrastructure provider developed numerous ways of characterizing the companys line of work and what could be done to describe and promote potental new lines of business. htp://www.haworth.com/Brix?pageID=1374 Haworth Ideaton Group: Performance-Driven Ofce Design, Haworth, Inc., 2009 htp://en.wikipedia.org/wiki/Problem_solving Problem Solving, Wikipedia (extensive hyperlinked list of problem-solving techniques) htp://www.id-mag.com/artcle/Getng_Serious_About_LEGO/ Getng Serious About LEGO, I.D. magazine, undated (2009) htp://www.hiit.f/u/asalovaa/artcles/salovaara-et-al-interact2005-future-oriented-informaton.pdf [PDf] Use of future-Oriented Informaton in User-Centered Product Concept Ideaton, Ant Salovaara (htp://www.hiit.f/~asalovaa/) and Petri Mannonen, Helsinki Insttute for Informaton Technology, 2005 htp://www.slideshare.net/jdpuva/brainstorming-and-ideaton-overview [Slideshow] Brainstorming and Ideaton Overview, OVO, Mar 4, 2008 ZING: htp://gemba.dk/gemba- zing.aspx?lang=da Links: 19 Defniton: Ideaton is a term invented in the 1820s to mean the process of forming ideas or images. Of course, the frst human being ideated. But the formalizaton of this process was a consequence of the 19th Centurys fascinaton with human science, how the body and mind functon. Wikipedias defniton of ideaton is more proactve: idea generaton. Ideaton is the willful act of generatng ideas. for each person the precise act is diferent, but there is enough evidence to believe that ideaton occurs in predictable setngs and that the ideaton process can be improved upon through human agency. Successful ideaton that produces many genuinely new and potentally useful ideas is a personal act but also one subject to the social environment. Ideaton has a second, related meaning: the ability to envision oneself in the future, a rarer trait than the ability to come up with new ideas. Current Use: Ideaton is at the absolute front-end of innovaton. It is the well that gathers thoughts and experiences, and from them distlls ideas and visions. Many if not most individuals are ideators from childhood on, some beter than the rest. Natural ideators may have unusual mental capacites including a striking ability to think laterally. To harness and enhance ideaton on a broad scale, however, benefts from a well-stocked arsenal of techniques (listed and described on Wikipedia; see the link below). Ideas, like electricity, cannot be stored on the shelf. In place of the electrical batery, ideaton relies on idea banks and ideaton networks to preserve good ideas for future use. No Pros and Cons: Ideaton is a necessary process that naturally occurs when humans engage in problem solving. It can be formalized and applied to problems having to do with the front-end of innovaton. Ideaton as a collectve process can be managed. It seems to be the case that the ability to come up with new ideas is widespread, but that the ability to formally ideate to purposefully generate new ideas of a partcular type may be a less common human trait. While the evidence isnt all in, innovaton managers who seek to maximize their ideaton success rates will want to do advance work identfying individuals with striking records of ideaton success. Source: David Armano INNOVATION MANAGEMENT Sample use by DESINOVA company: In order to speed development of a breakthrough strategy for one of its subsidiary companies, a large parent company appoints a company innovaton director and instructs the director to build a team of innovaton managers who will integrate with the subsidiarys operatng units. htp://www.innovatontools.com/resources/innovatonmanagement.asp Innovaton Management Center, InnovatonTools, 2009 htp://hbswk.hbs.edu/item/5887.html Where Will Management Innovaton Take Us? James Heskit, Working knowledge, Harvard, Mar 5, 2008 htp://www.asb.dk/artcle.aspx?pid=19334 Innovaton Management Program, Aarhus School of Business, Aarhus University, 2009 htp://tnyurl.com/mckinsey-innovaton-management Innovatve management: A conversaton with Gary Hamel and Lowell Bryan, Joanna Barsh, Mckinsey quarterly, Nov 2007 htp://www.ispim.org/index.php Internatonal Society for Professional Innovaton Management, 2009 htp://www.worldscinet.com/ijim/ijim.shtml Internatonal Journal of Innovaton Management (IJIM), World Scientfc, 2009 htp://www.wiley.com/bw/journal.asp?ref=0963-1690 Creatvity and Innovaton Management (journal), Wiley, 2009 Links: 20 Defniton: Innovaton management has two components. The frst component is the management of the business processes that support innovaton: mission defniton, goal setng, team building, trend analysis and scenarios, assignments, co-creaton with customers, collaboraton with other organizatonal units, liaison with top management, customer experience design, ethnography and other types of human research, involvement with strategic planning, and so forth. The second component is managing the overall process of innovaton and the progress of specifc innovatons from start (ideaton) to fnish (implementaton). An innovaton manager is likely to be balancing many actvites simultaneously. Because innovaton is seen as cutng-edge, even afer its been insttutonalized, the innovaton management must take on another task, presentng the organizatons most ambitous projects to stakeholders: owners and investors, executve and middle management, workers, business partners, politcians, the press, and the public. Current Use: radually innovaton management has become an accepted business actvity like fnance and marketng, though its stll ofen the junior member among actvites. This gives innovaton managers the freedom to explore to innovate that more mature actvites have surrendered. Today, most large organizatons have a designated informaton manager; some have many and even executves charged with this responsibility. It remains to be seen how informaton management rides out the fnancial crisis: innovaton is most valuable during challenging tmes, but its too ofen seen as the most dispensable. Innovaton management may have to transform itself for the tmes into a type of recovery service providing new ways of staying compettve. Pros: About the frst component of innovaton management, managing business processes that support innovaton, there is no disagreement: innovaton is essental to every thriving organizaton, public or private, and it needs careful atenton and handling. Skilled innovaton management of this type keeps the innovaton machine running and well situated to contribute to corporate goals and maintain the innovaton groups (or groups) integrity and vitality, functonally and fnancially. In larger organizatons, the innovaton manager, especially if he or she has a high rank, can also play a signifcant, valuable part in directng and enhancing the organizatons mission, tasks, and capabilites. Its the second component of innovaton thats dicey. Innovaton managers can bring rigor and order to the innovaton process, but can they actually improve the quantty and quality of innovatons that can be implemented and thus demonstrate their value? Most innovaton managers would respond, Yes! We can and do, and point to innovatons, especially radical and transforming innovatons as evidence. But. Cons: How innovaton managers can improve the process of innovaton remains problematc. Should they encourage broad partcipaton in innovaton actvites? Should it organize and lead an elite skunk works or distribute innovaton champions to each operatng unit? And most uncertain, is the role of the innovaton manager to train as many individuals as possible to become capable of innovatng? Or is it to cull the ranks of workers (and possibly external stakeholders) for individuals who are demonstrably capable innovators serial innovators and who show talent, and then concentrate on supportng their work as innovators, however they do it? The innovaton management profession and the research that informs it are each too new for a defnitve answer. INTERACTION DESIGN Sample use by DESINOVA company: A portal created to facilitate management of a customers account is assigned to interacton designers for evaluaton in its inital concepton stage and then for development as a fully functoning system. htp://www.businessweek.com/innovate/content/jul2006/id20060728_334148.htm?chan=innovaton_innovaton+%2B+design_top+stories Interacton Design: An Introducton, Dan Safer, Business Week, July 28, 2006 htp://en.wikipedia.org/wiki/Interacton_design Interacton Design, Wikipedia htp://www.designinginteractons.com/ Designing Interactons, Bill Moggridge, IDEO, interactve website (highly recommended) htp://www.ixda.org Interacton Design Associaton website htp://www.frstmonday.org/issues/issue12_4/kaptelinin/htp://www.frstmonday.org/issues/issue12_4/kaptelinin/ Excerpts from Actng with Technology: Actvity Theory and Interacton Design, Victor kaptelinin and Bonni Nardi, MIT Press 2007 Links: 21 Defniton: In a very short tme, Interacton Design (ID) has emerged as a new, self-identfed design discipline and claim to a sizable territory within the practce. According to Dan Safer of Adaptve Path, author of the leading text on Interacton Design, ID is the art of facilitatng or instgatng interactons between humans (or their agents), mediated by products. By interactons, I mostly mean communicaton: one-on-one (a telephone call), one-to-many (blogs), or many- to-many (the stock market). The products an interacton designer creates can be digital or analog, physical or incorporeal or some combinaton thereof. ID is concerned with the behavior of products, with how products work. A lot of an interacton designers tme will be spent defning these behaviors, but the designer should never forget that the goal is to facilitate interactons between humans. Current Use: ID gained currency as a profession with the emergence of new media of communicatons. While Safer emphasizes that ID is applicable across the board to every system that facilitates human communicatons, in fact its greatest applicaton remains to communicaton and media technologies: the Internet, wireless communicatons, kiosks, digital TV, and similar systems. Pros: ID focuses the atenton of its practtoners on human acts of communicaton and technologies and systems that can support and extend the communicaton processes. It is a more limited design discipline than general design disciplines, for example, industrial design or graphic design, which are based on the designers skills. ID is defned by its outcomes. ID is thus more delimited than traditonal design disciplines, obeys more formal rules, and is more easily taught and communicated as a practce. Its outcomes are more easily evaluated: while a conventonal design may or may not be successful, users of ID innovatons know instantly whether or not a design has been a success. Learning within the ID community is exponental. Cons: Because of its relatve youth among design disciplines, and despite its characterizaton as a fast-learning profession, ID is stll largely a mater of intuiton and common sense. The profusion of poorly functoning wireless devices (and a few standouts that work well, like the iPod and iPhone) is testmony to the uncertain quality of much ID. Perhaps once educaton in this feld has become more robust, practtoners will be held to higher standards. for the moment, however, ID solutons are wildly erratc in terms of performance. Links: lateral thinking (six thinking hats) Sample use by DESINOVA company: A brand manager, concerned about not having a completely thought through plan for migratng a brand from one market segment to another, convenes a hat wearing session complete with Thinking Hats = and follows de Bonos methodology to arrive at a more holistc plan. htp://www.debonoconsultng.com/ de Bono Consultng website (dense with material) htp://www.edwdebono.com/debono/lateral.htm Lateral Thinking and Parallel Thinking, Edward de Bono, Edward de Bonos Web, 2009 htp://www.realinnovaton.com/content/c081110a.asp Lateral Thinking Stmulates Creatvity and Innovaton, Paul Sloane, Real Innovaton, 2009 htp://www.mindtools.com/pages/artcle/newTED_07.htm Six Thinking Hats, MIndTools, 2009 htp://www.managementoday.co.uk/channel/StrategyOperatons/news/674496/ The Gospel according to Edward de Bono, Management Today (Uk), Aug 1, 2007 Links: 22 Defniton: Edward de Bono, a writer and consultant dealing with creatvity, coined the term lateral thinking in 1967. According to de Bono, There are several ways of defning lateral thinking, ranging from the technical to the illustratve. Lateral thinking literally means thinking sideways. According to Wikipedia, Lateral thinking is about reasoning that is not immediately obvious and about ideas that may not be obtainable by using only traditonal step-by- step logic. de Bono further prescribed several techniques for stmulatng lateral thinking. As an extension of this concept, de Bono devised a simple cartoon now known as The Hats to describe six diferent types of thinking and how they relate to create a complete thought process. figuratvely putng on a hat of a diferent color compels one to think in that manner. Current Use: Lateral thinking is a personal practce. Because de Bonos ideas are popular around the world, it is practced widely but usually privately. By itself, lateral thinking helps one to solve problems; when combined with other techniques of percepton and cogniton, it can be an important part of the early- stage innovaton repertoire of problem-solving tools. One can practce lateral thinking in ones own way, according to rules that are personally palatable and efectve. No Pros and Cons: Lateral thinking is a useful technique for working around mental barriers that conventonal logic cannot overcome. The more one uses lateral-thinking techniques, the more second nature they become. White Hat: facts Red Hat: Emotonal thinking Yellow Hat: Positve thinking Black Hat: Critcal thinking Green Hat: Creatve thinking Blue Hat: Big picture thinking leaD-users anD leaD-user Panels Sample use by DESINOVA company: Prototypical new products are distributed by a maker of outdoor goods to selected lead users who relate their experiences with the products before they go into producton and distributon. htp://en.wikipedia.org/wiki/User_innovaton User Innovaton, Wikipedia (discusses von Hippels lead user concept htp://www.wu-wien.ac.at/wuw/insttute/entrep/forschung/userinnovaton/leaduser/index Lead User Research, Insttut fr Entrepreneurship und Innovaton, Wirstschafsuniversitt Wien website htp://web.mit.edu/evhippel/www/papers.htm Downloadable Papers, Eric von Hippel website (also has videos, tutorials) htp://outsideinnovaton.blogs.com/pseybold/2006/02/lead_users_vs_l.html Lead Users vs. Lead Customers and the Role of Toolkits, Patricia Seybold, Outside Innovaton blog htp://www.telenor.com/telektronikk/volumes/pdf/2.2004/Page_126-132.pdf Creatng breakthrough innovatons implementng the Lead User method, Erik L. Olson and Geir Backe, Telenor website Links: 23 Defniton: In the 1980s and 1990s, MIT professor Erik von Hippel and his colleagues pioneered the concept of user-initated innovaton, later refned into the process of customer co-creaton. So-called lead users who are deemed to have special insights into their practces are recruited individually and as panels, provided with alpha and beta versions of technology and/or prototypes of actual products and services, and then asked to use the devices for some predetermined period of tme. During and at the conclusion of this test period, the Lead Users are brought together on a scheduled basis to report on their experience and make suggestons for improvement to the future products and services. Current Use: Because of the relatvely high cost of recruitng top talent to devote tme for Lead User evaluaton, and because it relies on being able to provide them with at least approximate forms of the fnal products to be evaluated, this process is most ofen used by large, well-resourced organizatons: Large laboratories and commercial enterprises. Nevertheless, this type of innovaton support is common within those strata of product and service developers to help evolve designs of low-tech as well as high-tech devices and systems. Pros: By defniton, Lead Users are considered more knowledgeable about the things they are evaluatng than laypersons or testers selected randomly to evaluate new products and services. Lead User Panels multply the value of Lead Users by creatng multlateral conversatons on the Lead Users fndings and opinions in which common threads become evident and idiosyncratc opinions are balanced against dominant main streams of opinions. Another advantage of Lead User Panels is that they are ted into networks of infuence in their respectve felds, so that they feed in opinions from larger communites and reciprocally, send out problems for general consideraton. Individual lead users may also prototype new products. Cons: In the same way that Lead User panels can enhance the input of individual Lead Users, they can also amplify incorrect assessments of a product or services performance and its utlity in a future market. The Delphi Efect in which members of a group coalesce on a centrist positon the more they converse applies to Lead User panels as it does to any group. Another potental disadvantage of a Lead User panel, and Lead Users overall, is that knowledgeable individuals are also opinionated and prone to reifying the given wisdom. minD-maPPing Sample use by DESINOVA company: A complex service design for managing company-customer sales interactons needs reinventng and a new implementaton. A mind map of the interacton process is composed to (a) fully understand the process and its elements, and (b) to assemble a beter process for implementaton. htp://www.mind-mapping.org/ Sofware for mindmapping and informaton organizaton, Society for Mindmapping and Informaton Organisaton (non-commercial site ofers artcles on mind-mapping and links over 200 mind-mapping sofware products and reviews) htp://www.worldofexperience.com/Startpage/start_startpage.asp, htp://www.myworldofexperience.com/, and htp://www.companymap.com/cmc/ The Atlas of Experience (2000), Louise van Swaaji, Jean klare, David Winner; The Business World Atlas (2006); and Company Mapping htp://en.wikipedia.org/wiki/List_of_mind_mapping_sofware List of mind-mapping sofware, Wikipedia (free and proprietary, online and stand-alone) htp://www.youtube.com/watch?v=MlabrWv25qq Mind-Mapping, Tony Buzan (claims to have invented modern mind-mapping), YouTube htp://amakar.com/artcles/pm-tools-and-techniques/110-mind-mapping-risk Mind-Mapping Risk, Project Management Tips (case study) Links: 24 Defniton: Mind-mapping is the latest version of the classical analytcal map pioneered in Classical tmes by Aristotle and other Greek natural scientsts. Mind maps are used to deconstruct complex paterns of thought, objects, and events; and to graphically illustrate how these relate to a theme or a larger idea. These are called mental constructs. In modern practce, mind maps always have at their center a theme or idea to which all of the other ideas on the map are related, directly or via other ideas and factors in the environment. A mind map is a way of indexing ideas, revealing how streams of ideas radiate from a central thought and divide into sub-thoughts, and interact with other elements as they do. Seen the other way around, mind maps describe how ideas combine to form larger ideas, interact with the environment, and ultmately congeal as the central theme or big idea of the mind map. Current Use: Mind-mapping is ofen an adjunct to methods of ideaton including brainstorming, lateral thinking, and scenario building. Mind maps which can be dynamic with the proper sofware capture all of the known factors that create a system, contribute to an outcome, or result in a new understanding. Mind-mapping, like gap analysis, is also used to reveal voids in mental constructs: items that are uncertain, about which informaton must be obtained; and weak or nonexistent connectons between elements of the mental map that need investgaton to determine if they exist and if so, the actual relatonship between the elements. Mind maps are used to share complex knowledge In an easy to use graphical form. Pros: Mind maps are useful tools for describing all of the elements of a complex system. Because they are inherently modular, diferent individuals can work on diferent portons of a mind map or make new contributons to portons of the map that were earlier thought completed. When a mind map is used to index ideas to relate them in a logical order so that each leads to others it can be a powerful cognitve assist. A dynamic mind map can be manipulated in three dimensions, in efect immersing its user in the idea space created by others. A mind map can be used to quickly orient a team of individuals relatve to a problem that they are assigned to solve. More imaginatve mind maps that use metaphors rather literal meanings, while less applicable to conventonal problem solving are nevertheless capable of producing great insights. The Atlas of Experience (see link below) has become a surprise bestseller because it has this magic. Cons: The more complex an idea space, the more complex the mind map to represent it untl the map becomes do dense as to be visually unusable without magnifcaton, at which point the image loses its totality. Because human beings are only capable of holding in their minds about seven distnct items in the same category, the impressive data-handling of which mind maps are capable is ofen wasted on its human users. It then exists mainly as a reference. Only a very large team can master high complexity and that risks a division of the soluton that requires great energy to reintegrate. The same goes for the use of mind maps. Another issue is that ideas occur in multple dimensions, more than two or three. Conventonal mind maps are only two-dimensional and computer-supported mind maps are only three-dimensional. Lastly, what is mapped is ofen taken as what is true but of course, most mind maps are incomplete and tme-bound. MORPHOLOGICAL ANALYSIS Sample use by DESINOVA company: A leading transportaton company wants to determine which of many alternatve services it can provide that will prove advantageous with customers and authorites vis--vis the oferings of other transportaton providers vying to serve the markets the DESINOVA company serves. htp://www.swemorph.com/ Swedish Morphological Society (enter of the Scandinavian morphological-analysis universe) htp://www.mycoted.com/Morphological_Analysis Morphological Analysis, Mycoted Wiki for Creatvity & Innovaton, Science & Technology, Apr 16, 2006 htp://www.mindtools.com/pages/artcle/newCT_03.htm, Atribute Listng, Morphological Analysis, and Matrix Analysis, MindTools, 2009 htp://www.diegm.uniud.it/create/Handbook/techniques/List/MorphoAnal.php Morphological Analysis, Pros and Cons, Dept. of Engineering, University of Udine, Italy, Aug 8, 2007 htp://www.diegm.uniud.it/create/Handbook/techniques/List/MorphoAnal.php Morphological Analysis and Relevance Trees, European Commission Joint Research Centre (JRC), Insttute for Prospectve Technological Studies, 2007 Links: 25 Defniton: Morphological analysis is used to assess extremely complex, multdimensional problems in which relatonships are uncertain, dynamic, and difcult to transform into solvable mathematcal equatons. It is a computer- based problem-solving technology created by astrophysicist fritz Zwicky at California Insttute of Technology (which gives some idea of its origins and degree of difculty of use) and further developed by Tom Ritchie of the Swedish Morphological Society. Morphological analysis which means form-based analysis is used to create and analyze sets of atributes that have relevance to solving a problem. These can include the three aspects of problem-solving: the problem or problems, the possible solutons to the problem(s), and the environment that creates a context for the problem(s) and their solutons. Testng their power with Bayesian (statstcal) mathematcs one of several methods reveals how the entre system may respond to changing circumstances. The results of morphological analyses refect their uses: scenarios for futuristcs, specifcatons for product development, policies for internatonal diplomacy, and so forth. Current Use: Problems for which morphological analysis is preferred to more traditonal problem-solving techniques have usually been of a size and complexity beyond the ken of business innovators and designers. Defense agencies, governments, energy companies, climatologists, and so forth are more frequent practtoners of morphological analysis. However, as the power of afordable computers increases to rival supercomputers of the past, morphological analysis may become a commonly used problem- and soluton-characterizaton tool. Pros: Ifor those who practce morphological analysis usually in public and private laboratories with plenty of computng power and a broad mandate to experiment with solving complex problems in an uncertain, sometmes far-of future there is no substtute. Big thinkers, they consider their work practcal in an unconventonal way. Unlike conventonal problem-solving and innovatng, which is evaluated mathematcally (How much beter, at what cost?), morphological analysis discourages a priori simplifcaton of the problem. Complicated phenomena are not externalized as occurs, for example, when scientsts, managers, or designers purposely ignore factors for which they have no suitable mathematcs or data; instead, they are incorporated.. The presence and interacton of these mathematcal imponderables are grist for the morphological analysis mill and what makes morphological analysis so intriguing and atractve for those solving big problems. Cons: Morphological analysis requires substantal computng power. It also requires tme and efort to identfy, categorize, and arrange in a matrix all of the relevant factors that may afect the soluton of a problem; then to run analyses and see how and which of these factors determine likely and less likely solutons; and then to test the solutons themselves. There is a good case to be made that one of the great values of business innovators and designers is their ability to mentally short-circuit complex problems and arrive at intuitve solutons rapidly and with tolerable, even commendable rates success rates. This is more art than science, however. Morphological analyses can produce reliable solutons that can be compared and of them, the best chosen; this gives morphological analyses their power. But the expense in tme and efort for doing these analyses is substantal. OBSERVATION/USABILITY LABORATORY (testing in a ControlleD environment) Sample use by DESINOVA company: A retail company initates lab tests a new method for delivering services online or via a POS terminal using usability techniques. htp://upassoc.org/ Website of the Usability Professionals Associaton htp://www.uie.com/artcles/ Artcles on usability, on User Interface Engineering website htp://culturalusability.cbs.dk/ CBS Project exploring usability as cultural artfact in Denmark, India, and China htp://www.useit.com/alertbox/20040315.html Why Consumer Products Have Inferior User Experience, Jakob Nielsen, Alertbox, 15 March 2004 htp://en.wikipedia.org/wiki/Usability_testng Usability testng, Wikipedia Links: 26 Defniton: Usability isnt an innovaton methodology per se, but it can be used to test innovatons, partcularly product and system innovaton. Usability was pioneered by DEC in the early 1970s to test new computer systems before they became available to buyers. The method was simple: set up a system, bring in engineers posing as potental buyers, and observe how the system functoned. The engineers made copious recommendatons that proved as useful as what the observers could physically see for themselves. Usability today employs sophistcated metrics to measure suitability of a design. Current Use: Today, usability as a methodology has been extended to everything from new hardware and sofware to new services on the Internet, including online services like eye-tracking and keystroke monitoring, and even for non-digital purposes (for example, testng how subjects interact with kitchen appliances, autos, and clothing. Because usability in this sense requires controlled conditons, it is usually conducted in a laboratory setng that is made to mimic real-world situatons as closely as possible. Video and other digital records, on review help to capture the nuances of product performance and user experiences. Pros: Usability is easy to understand and it is quite easy to apply parameters and develop metrics to reveal a range of subject behaviors, and also to detect where a product is defeatng appropriate use. Usability laboratories are relatvely inexpensive to construct (depending on the technology assembled to launch tests) and, once established, inexpensive to maintain. Recruitng usability testers is considerably easier than recruitng for other types of innovaton methodologies that require professional preparaton, educaton, and training. Cons: Laboratory personnel employing usability testng tend to overvalue the reliability of usability test outcomes. As in the old adage, When all you have is a hammer, all else is a nail, observers performing usability tests can become enamored of empirical, usually numerical test results and subject reports. This can prevent them from understanding the deeper causes of product success or failure. Because laboratory setngs are inherently artfcial, they can introduce biases into the test situaton that may make a product soluton seem more or less successful than it actually is. This is even truer of services tested in-house. Experience shows that users are spoiled afer a few partcipatons, becoming biased toward partcular styles. OPEN INNOVATION Sample use by DESINOVA company: Looking for a breakout strategy in stressful tmes, a manufacturer puts out the word that it is welcoming ideas, inventons, and collaboratons with frms in its sector but also companies operatng beyond it. It creates a Wiki to capture and share this knowledge, and to identfy potental partners. htp://openinnovaton.haas.berkeley.edu/ Professor Henry Chesbroughs Center for Open Innovaton at the University of California-Berkeley htp://www.openinnovaton.eu/ OpenInnovaton.eu, the European Unions Internet portal for open innovaton htp://www.siliconvalley.um.dk/en, htp://www.icdmuenchen.um.dk/en, htp://www.shanghai.um.dk/en Innovaton Center Denmark htp://www.boston.com/bostonglobe/editorial_opinion/oped/artcles/2009/02/02/collaboratve_innovaton_for_the_post_crisis_world/ Collaboratve Innovaton for the Post- Crisis World, Paul Stofels, Chairman of Pharmaceutcal R&D, Johnson & Johnson, Boston.com, feb 2, 2009 htp://www.mckinseyquarterly.com/Informaton_Technology/Networking/next_step_in_open_innovaton_2155 The Next Step in Open Innovaton, Mckinsey quarterly, Jacques Bughin, Michael Chui, and Brad Johnson, Jun 2008 Links: 27 Defniton: Open innovaton is among todays most popular innovaton- management themes. Its leading champion is Professor Henry Chesbrough at UC Berkeley. Derived from the concept of open sofware to which numerous individuals freely contribute, and which is therefore non-proprietary i.e., open to amendments and alteratons by its users open innovaton is the ideal form of collaboratve innovaton. In an open-innovaton environment, all stakeholders in an organizaton owners, managers, workers, customers, business partners, and regulators, even compettors -- are invited to submit innovatons for implementaton. Proactve organizatons seek sources of inventon and innovaton at conferences, comb published reports and online websites and blogs, and interact with expert groups professional associatons and university facultes to discover relevant, high-value ideas and concepts. Current Use: According to pundits at conferences, online, and in the press, every organizaton especially companies and public agencies should be practcing open innovaton. Many do. A. G. Lafey, the CEO of Procter & Gamble, an innovaton leader, says his company leaves no stone unturned. When necessary, Lafey turns to compettors to arrange partal truces so that they can pool technical resources and discoveries to create shareable innovatons. Despite the popularity of open innovaton as a concept, however, more sharing has taken place as a result of traditonal business-intelligence actvites and espionage than openness. Nevertheless, given the shortages imposed on companies by economic crisis, the social networks that can support open innovaton for example, Linked In are rapidly growing in size and infuence. Will open innovaton cease being just over the horizon? Pros: Open innovaton is graced with any number of virtues, at least in concept. It is liberated, free, collaboratve, and co-creatve. In many ways, to listen to its proponents, open innovaton resembles the open research and development that takes place in universites and public insttutes only, in concept, open innovaton is even broader, its practtoners leaping across professional and disciplinary boundaries. Based on the experience of the open sofware movement, products and services that are invented and developed in the open will be less expensive, more versatle, and highly reliable, with armies of volunteers available to answer users questons and contnuously improve the products and services. Open innovatons greatest appeal may be as an answer to widespread recogniton that (a) in complex modern society, experts know less individually and more collectvely; and (b) most innovatons fail, usually for lack of knowledge that is available outside of the innovatng organizaton or that would become apparent, collaboratng. Cons: IIndividuals, companies, and agencies operate in compettve environments, even in societes where cooperaton is favored. With openness comes a lowering of barriers to the free fow of informaton, which can destroy compettve advantage. for this reason, most companies and agencies do not practce open innovaton or practce it only under very limited conditons (for example, all invited collaborators sign mutually binding non-disclosure agreements). The collectve cost of privacy is high: redundancy, partal solutons to problems, inefectual products and services these and other results damage the commonweal. But the private cost of openness is perceived to be higher. Untl companies and agencies are motvated by or forced to assume a responsibility to the whole society, open innovaton will remain mainly a good personal practce and a social ideal. PARTICIPATORY OBSERVATION Sample use by DESINOVA company: Designers work in a successful alternatve restaurant as wait staf to understand its cultural milieu and its stafs attudes (for example toward new food-preparaton technology) and then alter the Buying Experience. htp://champpenal.revues.org/document471.html Champ Penal (Penal field) blog, Partcipant Observaton as a Tool for Understanding the field of Safety and Security, 2005 htp://www-usr.rider.edu/~suler/psycyber/partobs.html Partcipant Observaton Research, The Psychology of Cyberspace htp://tnyurl.com/5mv8bj Module 2, Partcipant Observaton, qualitatve Research Methods: A Users field Guide, family Health Internatonal htp://terranova.blogs.com/terra_nova/2004/10/what_consttute.html What consttutes ethnical partcipaton in MMOG ethnography, Terra Nova blog, Oct 15, 2004 htp://en.wikipedia.org/wiki/Partcipatory_observaton Partcipatory Observaton, Wikipedia Links: 28 Defniton: The philosopher William James (also known as the father of modern psychology) was perhaps the frst partcipant observer in his case, observing his own mental state in reacton to memories, events, and expectatons. James considered it essental to his method of knowing (epistemology) to be consciously involved in the world. In the same way, partcipatory observaton today is a method for understanding social behavior by partcipatng in it. The partcipant observer joins a work team, lives in a community, and takes leisure tme with the subjects of his or her study. A modern variaton is to involve oneself in a buying experience or, in the virtual worlds, play a videogame or join a social network for the purpose of understanding what occurs in these environments. Current Use: Partcipatory observaton is commonly used to intmately study group behaviors (among groups like those above, but also in many other types of groups). In the feld of innovaton, partcipatory behavior can substantally contribute to trend identfcaton, trend analysis, and scenario planning. Another type of partcipatory observaton is to place oneself in a group atemptng to innovate, to discover what promotes and what retards innovaton. Pros: Partcipatory observaton is one of the mainstays of actve research. It enables the researcher to get insider the heads of the subject populaton. (Some would say, it forces this type of mental deep-sea diving.) The partcipant observer has an advantage over other researchers who must interpret motves and emotons based on external observaton. They dont know what to look for. Partcipant observers have inherent credibility when they report on their subject communites and related phenomena. Cons: When the US military invaded Iraq, it included among its ranks embedded journalists. Embedded journalists later complained, as did their critcs, that living with the soldiers day in and day out impaired the journalists objectvity in two ways: It limited what they discovered in the environment, and it afected their ability to interpret what they discovered. Being closely involved with a subject populaton ofen leads to identfcaton that afects a researchers percepton and objectvity. Partcipatory observaton limits the researchers ability to escape the situaton in which he or she is partcipatng. This distorts an accurate worldview. The reverse is also true: A partcipant observer can skew community behavior as it otherwise would not be. PATH DEPENDENCE Sample use by DESINOVA company: faced with a new compettve environment caused by the fnancial crisis, an insurance provider commissions a thorough investgaton of the history of fnance in similar past situatons, including the Great Depression in the 1930s. The resultng paths suggest a unique strategic approach. htp://www.dime-eu.org/working-papers/ral3/2008-01 Innovaton-systems, path-dependency and policy, Jan fagerberg, David C. Mowery, and Bart Verspagen, EU-DIME (Dynamics of Insttutons & Markets in Europe), Jul 8, 2008 htp://www.mngt.waikato.ac.nz/ejrot/cmsconference/2007/proceedings/apolloanteportas/dobusch.pdf [PDf] Schumpeter vs. Path Dependency: Innovaton Lessons from breaking through Innovaton Barriers, Leonhard Dobusch, 5th Intl. Critcal Management Studies Conference, Jun 2, 2007 htp://en.wikipedia.org/wiki/Path_dependence Path Dependence, Wikipedia htp://people.virginia.edu/~hms2f/Path.pdf [PDf] Down the Wrong Path: Path Dependence, Increasing Returns, and Historical Insttutonalism, Herman Schwartz, University of Virginia, 2003 htp://people.virginia.edu/~hms2f/Path.pdf [PDf] Incorporatng Path Dependency into Decision-Analytc Methods: An Applicaton to Global Climate-Change Policy, Mort Webster, Decision Analysis, Jun 2008 (case study) Links: 29 Defniton: Path dependence is a socio-technological theory. Its axiom is that past decisions and outcomes limit successive choices and futures. A good example is the use of automobiles for mobility. Worldwide, substantal public investment in roads and highways has enabled ease of use and encouraged private ownership of vehicles, which in turn has made the global auto industry and oil producers powerful policy actors domestcally and internatonally. These factors taken together have severely crimped many natons ability to plan for or support non-automotve public transportaton thus in part setng the stage for global warming, climate change, and their results. This evolutonary view of history difers from traditonal historical accounts in which powerful people dictate events and economic accounts in which economic ratonality dictates history. On a smaller scale, business innovators deal with path dependence all of the tme. It must be reckoned with in planning an innovaton strategy including its implementaton and post-implementaton. Current Use: Academics in the social sciences, especially history, developed path-dependence theory. It has since been adopted as a working theory by strategic planners in government and industry as a way to locate an innovatve initatve in space and tme, understand its antecedents, antcipate its support and oppositon, and plan for its adopton and implementaton. Path dependence is as important as current and future conditons to determining the success of a companys innovaton initatves, internally and externally. Pros: Path dependence, like physics, is a plausible theory capable of convincingly explaining how things work and difcult to ignore. Applied in business and government setngs, it is a powerful explanatory tool for explaining how and why prevailing policies and attudes persist. So informed, business innovators and designers can a) use favorable policies and attudes in their favor, (b) intelligently plan to change these policies and attudes when they must and can be changed for example, by calling into doubt the underlying ratonale for these policies and attudes or (c) work around them if necessary. An old adage says, You cant get where youre going if you dont know where you are. Path dependence informs where one is and what forces currently exist and are likely to be deployed in the event of an innovaton. Cons: Critcs of path dependence observe that paths are socially constructed realites, not inherently true but taken as the truth because they are agreed upon. Path historians, the critcs note, are ofen selectve in the events and relatonships they choose to compose paths: its safe to do so because, whether or not a path is accurate, history ultmately produces the same Now. Believing an incorrect path, especially one created by oneself, can result in a tragic outcome missed environmental cues, overestmatng acceptance, underestmatng oppositon, and so on. Because the theory of path dependence is so appealing, paths assume a quality of inevitability, as The more things change, the more they are the same. But tme and tme again, history has proven less predictable than the paths would make it seem. PERSONAS Sample use by DESINOVA company: When a new product has been conceived for example, a new type of home (e.g., a collectve housing) it is populated with personas representng diferent categories of people, to see how they would behave in it. htp://en.wikipedia.org/wiki/Personas Personas, Wikipedia htp://www.cooper.com/insights/journal_of_design/artcles/the_origin_of_personas_1.html, The Origin of Personas, Alan Cooper, Cooper Design website htp://www.peterme.com/?p=624 Personas 99% bad? Peterme blog, Peter Merholz, Adaptve Path, 1 Jan 2008 htp://interactons.acm.org/content/?p=262 Persona non grata, Steve Portgal, Interactons of the ACM, feb 2008 htp://www.thewatchmakerproject.com/journal/375/using-personas-to-inform-design Using Personas to inform design, The Watchmaker Project blog, 10 Oct 2006 Links: 30 Defniton: Personas literally are the identtes that human beings and social organizatons assume as they live their lives in society. The term comes from literary and theatrical traditon, in which characters in a story are called personas, which the actors in a play or the reader of a story fll in and make real, physically or mentally. In the feld of contemporary design, personas are invented characters, archetypes with traits that are intended to resemble the traits of many actual people condensed into one. They are assembled using demographic and psychographic research among real people. Researchers and designers imagine the personas behaviors and extrapolate how real people would behave faced with similar events and design solutons. Current Use: Personas are very popular for testng digital systems and environments that do not yet exist, but which can be fairly well characterized by their developers that is, their qualites and characteristcs are specifed. Examples might be online communicaton systems or online stores. In the material world, personas are commonly used to test new products in concept, to see how people would adapt to them; and campaigns to have people act in new ways, for example, working with local development initatves. Pros: Personas are one of the most controversial of design tools used today, in part because they were developed for another purpose - storytelling. Over the last decades, the use of personas has become standard within most design agencies as a way of dealing with social and cultural factors afectng the introducton of new products and services. Personas are easier to use as testers than real people. Theyre economical and can be crafed to emphasize personal characteristcs most relevant to a new product or service. Personas sharp reactons enable designers and their clients to quickly detect possible problems and arrive at more refned solutons, Personas challenge conventonal marketng assumptons (e.g., segmentaton). Cons: Personas are 100 percent fabricatons, so their behavior is really the sum total of their inventors preconceptons. A persona may seem real enough when defned in the design charrete, but actual human beings may act very diferently under the same circumstances. A persona may over represent a partcular personality type or behavior, which then skews design results. Their use may breed a false sense of security among designers. Personas are sometmes used to prop up designs or simply to engage in pseudo-research. Sample use by DESINOVA company: Like the World Bank, a large fnancial insttuton may want to initate a PM that indicates how fnancial markets and investment opportunites will develop, to educate its users with the caveat that its outcome may not be the truth! Links: PreDiCtion markets htp://en.wikipedia.org/wiki/Predicton_markets Predicton Markets, Wikipedia htp://bpp.wharton.upenn.edu/jwolfers/Papers/Predictonmarkets.pdf Predicton Markets, Justn Wolfers and Eric Zitewitz, Journal of Economic Perspectves (Spring 2004), Wharton School of Business, U of Pennsylvania htps://bet2give.com/b2g/index.html Bet2Give, a model predicton market in which earnings are given to philanthropies htp://us.newsfutures.com/home/decisions.html Newsfutures webpage (commercial supplier of corporate PMs) 31 Defniton: Predicton markets (PMs), also known as informaton markets, decision markets, idea futures, event derivatves, and virtual markets are betng games used in business and by governments to harness the wisdom of the masses for forecastng future events, reducing risk, and making plans more certain. As in a stock exchange or futures market, individuals use money or tokens to bet on the likelihood of future events. If the events occur, they win; if they dont, they lose. The real winner is the bookmaker who, for very litle investment, gets a window on the future that may be fuzzy but beter than none. Like scenario planning, PMs sensitze partcipants to forces in the environment but PMs are relatvely crude, involve hundreds or thousands of partcipants, and require litle skill to partcipate (although what you know about the subject mater may determine your success). Current Use: The most notorious suggested use of a PM was by a US military spy agency to predict the futures of overseas regimes. It never was implemented. Today, the World Bank, major corporatons and marketng consultancies, governments, and universites operate PMs. Though popular, PM results remain problematc. They have been wrong as well as right and the reasons for one or the other remain unclear. Pros: PMs are a wonderful way to involve large numbers of people in decisionmaking regarding future events, conditons, plans, and policies. Although partcipaton in a PM isnt yet available to everyone all the tme except in Monaco, Las Vegas, and betng parlors around the world, where real money trades hands both real and experimental PMs are proliferatng. Several are operatng online at any tme, thereby enabling more people to become future profcient and one supposes, beter planners. In the case of corporatons and others applying PMs, their results may be beter than the common mill because the PMs they run are specifc to issues confrontng the organizaton, and the game players, usually employees and other shareholders, have good knowledge to apply. Cons: Unfortunately, the Wisdom of the Masses, though a reasonable logical assumpton, has yet to be proven. PMs fail just as they succeed. If players are misinformed, misled, or partake of a popular delusion (e.g., the earth is fat), the games they play are doomed to produce faulty and unreliable outcomes. Perhaps the smartest way to employ PMs is the same as for scenario planning: as an educatonal, informatonal tool that can also result in social cohesion around a partcular issue. PROTOTYPING Sample use by DESINOVA company: In order to test a new Web-based consumer services, a prototype of the service is tested for one month among a carefully selected sample populaton chosen to resemble, and trained to react as, the intended service audience. htp://en.wikipedia.org/wiki/Prototyping Prototyping, Wikipedia htp://ross.typepad.com/blog/2006/07/ideo_prototypes.html Ideo Prototypes the future Exhibiton (2006), VC Ross Mayfelds blog (with links to podcasts) htp://designingforservices.typepad.co.uk/ Blog documentng interdisciplinary academic research conducted by Oxford U. on four service design projects and fve events, Dec 2006 Oct 2007 htp://www.springerlink.com/content/v25632/?p=10b08ea2a2c747c2968f742d3b761ed&pi=0 Service Science, Management and Engineering Educaton for the 21st Century, Springer-Verlag 2008, $129 (website requires payment for downloads of book chapters) Links: 32 Defniton: Prototyping is a common way to test designs. It involves creatng a working model of the design which, when subjected to critcal review and use, reveals where improvements must be made for the design to fulfll its purpose. Ofen, a prototype will result in scrapping the original design or fnding an entrely new use for it. Prototyping has traditonally been the domain of inventors datng back to prehistory; in modern tmes, engineers have refned the prototyping process for developing technology, products, and systems. Industrial designers introduced prototyping to the design profession. Three popular methods are paper prototyping, building and running the model in concept (used mainly for Web design); iteratve prototyping, which takes place over a series of tests; and rapid prototyping, which features immediacy at the possible expense of reliability. A recent ofshoot is the prototyping of service designs, a practce popularized by the Uk Design Council and IDEO. Current Use: Prototyping is used in every manufacturing sector, in agriculture (testng new strains), in constructon, and in the design of service processes and experiences. Which type of prototyping is used depends on (a) the partcular design disciplines used to create a soluton, (b) the domain for which the soluton has been created, and (c) the urgency of the designers or the clients need for the soluton. Service design now almost always involves a prototype stage that involves representatve end users in the process. Pros: Prototyping value is self-evident. Inventons that are prototyped are less likely to fail under the stress of actual use. Designers are familiar with most prototyping methods and skilled in their use, depending on the designers areas of expertse. In the case of service design, because there is ofen litle or no hardware or machinery to redesign only informaton systems and processes its possible to move rapidly from prototype to actual service implementaton. In that sense, the prototype is a cost-efectve stage in the fnal product or services development. The involvement of users with prototypes gives them a more solid basis in reality than other types of testng that do not involve users. Prototypes, because they are visible and ofen tangible, can be shared with executve decision makers in order to gain quick approval of proposed designs. Cons: Prototyping can lead to spurious conclusions. Because prototypes generally are tested under controlled conditons, not all factors bearing on the success of the proposed implementaton may be taken into account. (This is partcularly true of service designs.) Conversely, a prototype may be tested under conditons that over estmates the importance of irrelevant factors, leading to a negatve evaluaton and redesign or project cancellaton that may not have been necessary. Prototypes of large, dynamic, and complex projects are especially prone to each type of error. RADICAL INNOVATION Sample use by DESINOVA company: (Purely hypothetcal) faced with the long-term or permanent loss of a signifcant share of its customer base due to the economic downturn, the company transforms itself and ceases to be a product company: now its entrely in services and its product legacy is an asset, not a burden. htp://www.1000ventures.com/business_guide/innovaton_radical_vs_incr.html Radical Innovaton vs. Incremental Innovaton, Vadim kotelnikov, 1000ventures.com, undated. htp://tnyurl.com/Innovaton-Playground Radical Innovaton Requires 3 Distnct Capabilites: Ability To See With New Creatve Lenses; Ability To Apply Creatvity And Imaginaton In Solving Customer Unmet Needs; And Creatvity With New Business Model Design, Idris Moutee, Innovaton Playground, feb 20, 2009 htp://www.ribbonfarm.com/2007/07/23/disruptve-versus-radical-innovatons/ Disruptve versus Radical Innovatons, Venkatesh Rao, Ribbonfarm, Jul 23, 2007 htp://www.ideo.com/publicatons/item/informing-our-intuiton-design-research-for-radical-innovaton/ Design Research for Radical Innovaton, Jane fulton Suri, IDEO, Rotman Magazine, Winter 2008 htp://www.kaushik.net/avinash/2008/10/redefning-innovaton-incremental-side-efect-transformatonal.html, Redefning Innovaton: Incremental, w/ Side Efects & Transformatonal, Avinash kaushak, Occams Razor, Oct 13, 2008 Links: 33 Defniton: innovaton initatves vary widely in terms of their scope and intensity, but for the sake of convenience when discussing innovaton, practtoners usually discriminate three classes of innovatons: incremental (small changes in business as usual), standard (larger changes that require executve partcipaton), and radical (game-changers requiring insttutonal transformaton and that instll fundamental changes in business and/or government. Of course, scale is a mater of scope and experience; one companys incremental innovaton may seem radical to another. Among the three types of innovaton, radical innovaton is what most people think of when they think of innovaton: the steam engine, electoral democracy, vaccinaton, Copernican theory, aqueducts, romantc love, Einsteins Relatvity, evoluton, telephony, digital photography, the Internet, organized sports, and Coca-Cola. Current Use: The tripartte classifcaton of innovatons and the meaning of radical innovaton are universally recognized and understood among professionals who practce and study innovaton. Increasingly, however, game- changing is the preferred term among business innovators, meaning an innovaton has positvely changed the playing feld for industry or government. Game-changing has a more positve thrust than radical, which has anarchistc overtones; it relates to the outcome of an innovaton, whether it was successful or not, and not in relaton to the quality of other innovatons an extremely subjectve judgment. Pros: Whether one tries for a game-changer or a lesser innovaton depends on the situaton: if a company is a leader, perceives no serious challengers, and is risk-averse, it can muddle through the compettve market and widespread hard tmes making only incremental or at most, standard innovatons. If its seriously challenged or facing imminent disaster due to internal problems, however thats when companies go for radical innovatons. If they succeed, they transform the market and themselves so thoroughly that compettors are lef competng in the past while the companies enjoy rich rewards for bold acton. Of course, some radical innovatons are planned and result from well-informed and well- constructed strategies and corporate cultures. Virgins multtude of subsidiaries are well versed in strategic radical innovaton. Apples iTunes/iPod duet succeeded that way, too. Cons: Radical innovatons get the press, but more ofen its the less dramatc incremental and standard innovatons that are successfully and economically implemented. Radically innovatng frequently can be a go for broke propositon, gambling the store. A failed radical innovaton is costly, potentally demoralizing, and as demonstrated by the fnancial crisis, which started with radical innovaton in fnancial instruments (securitzed debt and wild derivatves) potentally destructvely of the company and disruptve of an entre industry (or indeed, the world economy, if the failure is big enough). When radical innovatons succeed, their authors and champions become business heroes. When they sink, they usually take the lifeboats down with them. role-Playing games Sample use by DESINOVA company: A complex service design for managing company-customer sales interactons needs reinventng and a new implementaton. A mind map of the interacton process is composed to (a) fully understand the process and its elements, and (b) to assemble a beter process for implementaton. htp://en.wikipedia.org/wiki/Roleplaying Roleplaying, Wikipedia htp://appliedimprov.ning.com/ The Applied Improvisaton Network htp://workplayexperience.blogspot.com/ Work Play Experience, Adam Lawrence htp://terrainnova.org/blog/?p=105 and htp://terrainnova.org/blog/?p=106 Role Playing Games in Innovaton, Parts 1-2, Demitris, Terrainova, May 5 and 28, 2008 htp://www.gdconf.com/conference/sgs.html Serious Games Summit, Game Developers Conference 2009 htp://www.seriousgamessource.com/ The Serious Games Source, hosted by The Think Services Game Group htp://swi.indiana.edu/ The Synthetc Worlds Initatve, Professor Edward Castronova, Indiana University Links: 34 Defniton: Role-playing is the assumpton as ones own of another persons perceptons, conceptons, thoughts, likes and dislikes, feelings; senses of sight, sound, taste, smell, and touch; and especially, the others values, aspiratons, and life experiences as much as is feasible. Players collaborate with other players to create realistc historic, contemporary, and future events, cultures, and societes. In the physical world, costumes may be used to heighten the players identfcaton with a role (as in living history reenactments). In virtual space for example, role-playing game environments avatars assume unique, easily recognizable visual and behavioral identtes. The uses of role-playing as an adjunct to innovaton are many, including being able to see things diferently in a new identty and communicatng more or less freely. The increasing popularity of simple role-playing games and more recently, of complex computer-supported games, has produced two valuable ofshoots: the frst, games in which innovatng in the game world is the reason to play, as in Second Life; and the second ofshoot, so-called serious games or simulatons in which innovatons can be devised and tested in real world conditons set by the players and simulated to the limits of their technologies. Current Use: In organizatons, role-playing in the past had mainly personal and social therapeutc purposes (T-groups and the like). No longer. Today role- playing, especially serious-game role-playing, has as its purpose improving the world or some porton of it. Pros: Role-playing, with able expert guidance, is a challenging way to confront ones emotonal intelligence, cultural biases, expectatons, biases, and capacity to live with the past and make the future. Collaboraton and co-creaton abound. In a game setng, the purpose can be foreordained by the designer or lef to the community of players ranging from two to hundreds of thousands, online to decide upon. Games are partcularly good for identfying challenges and testng solutons. The players can decide how many variables and degrees of freedom are valuable for satsfactory play. Playing games that represent the real world (simulatons) gives the players the experience of setng goals and making decisions under conditons of uncertainty that they can adjust to be more or less realistc. Players individually or collaboratvely can discover how to characterize and prioritze innovatons, discovering in the process how much tme and energy devoted at the front-end of innovaton reduces or increases resources required to evaluate and implement innovatons depending, as in the real world, on the games purpose and the goals that have been set. Cons: As with any tool, role-playing and game playing have their limits in terms of what can be accomplish through their use. Some individuals have personalites for which play-actng can become addictve and an excessive misuse of tme and energy. All games are inaccurate to some degree because modeling all of the factors and relatonships in any environment is difcult. The solutons that games produce can be simplistc and inapplicable in all but the most limited circumstances. SCENARIO PLANNING Sample use by DESINOVA company: Using trends and heuristc methods to forecast three possible futures scenarios -- based on key drivers, an organizaton can develop alternatve plans to cope with antcipated changes in the business and social environment. htp://en.wikipedia.org/wiki/Scenario_planning Scenario Planning, Wikipedia htp://www.well.com/~mb/scenario_planning/ Scenario Planning Resources, Martn Brjesson, The WELL htp://www.sric-bi.com/consultng/ScenarioPlan.shtml Scenario Planning, SRI Consultng (home of scenario planning) htp://www.gbn.com Global Business Network website (SRI derivatve). htp://www.risoe.dtu.dk/business_relatons/products_services/foresight/sys_scenarios.aspx?sc_lang=en Ris DTU Links: 35 Defniton: Scenario planning is the use of various predictve techniques to forecast possible futures, and then to plan for these futures on (1) the basis of their likelihood and (2) the consequences of each of these futures. Scenarios are not intended to depict actual futures. Their purpose is to identfy key factors in the environment, their interactons and outcomes. Scenario plannings purpose is to sensitze planners to these factors and other forces in the environment that require monitoring and possibly, reacton and adjustment in business, of existng business plans and models; and in the public sector, of policies and implementaton. Current Use: Scenario planning achieved prominence during the Cuban Missile Crisis in 1962 and later in the 1970s, when Shell Oil alone among the oil companies avoided that decades crises due allegedly to prior scenario planning. Today, scenario planning is a component of strategic planning as practced by companies and governments in virtually every sector. Scenario planning ofen is employed wrongly as a predictve method. Equally problematc is the use of scenarios, much weaker and less robust than the scenarios used in scenario planning, to test marketng and design hypotheses against possible futures. Pros: Scenario planning has three major benefts. The frst is identfying forces in the environment that might bear on the future. The second, achieved through constructng possible futures scenarios from the interacton of these forces sensitzes planners to possible futures it is claimed more holistcally than does traditonal strategic planning. A third beneft is scenario plannings capacity for enhancing team building. When partcipants collaboratvely build futures that they then incorporate in their worldviews, it can be a powerful bonding experience. Teams so equipped are ofen able to react beter to changes in the environment than teams that are more loosely bound by formal organizatons. Cons: The misuses of scenarios are manifold. Everyone would like to have a reliable crystal ball and superfcially, scenario planning may appear to approach this standard of predictability. Scenario planning is not intended to predict the future, however. Moreover, even as a sensitzaton technique, scenario planning varies in its power by each teams knowledge, intuiton, quality of collaboraton, and ability to project themselves collectvely into the future. There is no reliable method to measure the efectveness of scenario planning and no proof that scenario planning improves planning capabilites. SERVICE DESIGN Sample use by DESINOVA company: A retail store wants to complement the introducton of a new category of products with service innovatons that become associated, in the minds of its current and future customers, with the store brand. Call in the service designers! htp://www.howardesign.com/exp/service/ Service Design Research (25-year survey), Jef Howard website htp://www.design.cmu.edu/emergence/2007/ Emergence 2007 Conference, Carnegie Mellon University (next conference, 2009) htp://www.nd.edu/%7Ejsherry/pdf/2007/fruitfliesLikeABanana.pdf fruit flies Like a Banana, John Sherry Jr., in Mult-Lever Research (Oxford 2007), mind-blowing state of the art thinking about the role of tme in service design htp://www.lraworldwide.com LRA Worldwide, customer experience design frm with emphasis on service design htp://www.kellogg.northwestern.edu/kwo/win00/facultynews/index.htm Metaphysical Merchandising: Marketng professor John Sherry explores the postmodern retail theater and discovers that marketers want you to see God, Mat Golosinki, kellogg Business School blog, Northwestern University Links: 36 Defniton: Service Design (SD) goes by many other names as well: Customer service design, customer experience design, customer relatonship management (an earlier, technology-based practce seeking new relevancy), retail merchandising, organizatonal development, and service ecology. As recently as the 2007 Emergence conference on service design, there was no agreement among professionals and academics on the defniton of what consttutes a service or how it should be designed. A simple way to recognize service design stll circular is that it is the orchestraton of a collecton of actons and afordances by which an organizaton and those it serves communicate and connect. Current Use: According to the Uk Design Council, Only recently have managers in organizatons involved in the service sector realized that a conscious efort in applying design techniques to services can result in greater customer satsfacton, greater control over their oferings, and greater profts. Service design tends to be associated with retailing and sales, but also with product development in the many cases where products and services are developed to complement one another. Its applicaton is becoming universal, though with diferent degrees of rigor (for example, in defning touch points). Pros: In the late 20th and 21st Centuries, the growth of the service sector which technically comprises the provision of everything from medical care to fast food, including design -- has occurred in developed and developing natons alike. Service design has grown in parallel, bringing order to the design and implementatons of services, which before were largely ad hoc processes. Reciprocally, engagement with the service sector has been good for the design community, provoking designers to expand beyond their earlier preoccupaton with physical objects to engage with the intangible world of relatonships. While modern SD is stll a relatvely young practce, there is a lot of room for experimentaton and development. Cons: Service design is an umbrella concept that covers an extraordinary variety of design actvites. In such a situaton, coming up with a protocol and pedagogy common rules and educaton is nearly impossible. Thus, service designers learn primarily by doing, and most jobs require reinventng the wheel. No agreed-upon metrics exists to measure the value of most services or of their improvement. Service designers have few constraints to facilitate their mission. In Service Design today, everything is an experiment! skunk Works * (* The term Skunk Works is trademarked by the Lockheed-Marieta Corporaton. However, uncapitalized, skunk works has entered common usage.) Sample use by DESINOVA company: In order to create a leading-edge innovaton capability for the future, recovery, a DESINOVA company is investgatng optmal methods of insttutonalizing skunk works-like actvites within its organizaton. The key to its success will be its ability to fnd a leader with ability and compassion. htp://www.lockheedmartn.com/aeronautcs/skunkworks/ and htp://www.lockheedmartn.com/aeronautcs/skunkworks/14rules.html The Skunk Works and kellys 14 Rules, Lockheed-Martn Aeronautcs Skunk Works website htp://www.fastcompany.com/magazine/92/ibm.html Building a Beter Skunk Works, Alan Deutschman, fast Company, Dec 19, 2007 htp://www.economist.com/displayStory.cfm?story_id=11993055 Management Idea: Skunkworks, Economist.com, Aug 25, 2008 htp://www.hrcapitalist.com/2008/09/culture-dead-cr.html Culture Dead? Start a Skunkworks to Leapfrog the Lameness In Your Culture..., kris Dunn, The HR Capitalist, Sep 24, 2008 htp://www.cazh1.com/blogger/thoughts/2006/06/guidelines-for-success-with-your-skunk.shtml Guidelines for Success with Your Skunk Works Project, James. P. MacLennan, Cazh1.com, Jun 19, 2006 (nominally about sofware projects, but much broader than that and stll a quick read) Links: 37 Defniton: In the throes of World War II, Lockheed Aircraf was given the assignment to design and develop a new fghter plane in record tme, the highly successful P-38 long-range fghter. The secret laboratory in which this was accomplished was nicknamed Skunk Works because of a pervasive odor that reminded the engineers of the Skonk Works distllery in a popular cartoon. Lockheed kept the name and the laboratory, run under a set of protectve rules published by its founder, kelly Johnson, has produced a steady stream of striking new aircraf, seagoing vessels, and spacecraf. kellys 14 Rules defended the Skunk Works autonomy for getng things done its own way but declared its responsibility to always get them done on tme and with the highest quality. In contemporary practce, a skunk works is a special group within a company, sometmes fully independent, sometmes within a planning unit, with autonomy and responsibility for leading key innovaton initatves and providing advice to other innovators within the organizaton. Untl it became a PR asset, Disneys Imagineering unit played a similar role. Current Use: When the Skunk Works frst became public knowledge, in the mid-60s when its output was unmistakable, other companies rushed to establish their own skunk works. In many cases, the laboratories became isolated from the operatonal units of their host companies and thus less efectve at implementng innovatons. Conversely, given the presence of a hard-working skunk works, employees in other units wrongly assumed that they neednt innovate. Today, large companies judiciously run skunk works that are regularly reintegrated with the other divisions on a contnuous or periodic basis. Pros: Skunk works and their actvites typically are not widely advertsed. However, from what we know of the skunk works that have been opened to public view, they pride themselves on being the elite in their respectve organizatons. This is a two-edged sword. Being elite means the skunk works have sufcient resources and the best possible staf to accomplish their assignments naturally, the most challenging given to them by executve ofcers and divisional managers. On the other hand, being elite means encouraging envy and lack of cooperaton among less well-endowed units where conditons are not so comfortable and where the work can be tedious yet equally exactng. This division can retard necessary innovaton and change. It needs bridging via the personal atenton of leaders on each side of the relatonship. In one exceptonal case, the chief of a skunk works delegated to each of his top staf members a corporate division and its manager to befriend and assist. Soon informaton was fowing freely again. The employees in the divisions learned from the skunk works emissaries and replicated their style. for its part, the skunk works had a waitng list of volunteers eager to join its ranks. Cons: IOperatng a skunk works in a company with an innovaton culture and every front-running company should have one is like gilding the lily, redundant and not necessarily productve or proftable. Innovatons should proliferate throughout the organizaton. If the skunk works takes a leading but not exclusive innovatve role and helps other units to innovate, it can multply its value. If the skunk works becomes isolated or withdrawn, so secret that not even its colleagues in the company have an inkling of what it is about, that can destroy trust and inhibit collaboraton, co-creaton, innovaton, and implementaton. Defniton: Stage-Gate - invented by Robert G. Cooper - can be defned as a business process to manage new product development (NPD). It is based on years of analysis of the factors that defne success or failure on development projects.. The basic principles of Stage-Gate is to ensure optmal use of product development resources - ie. support viable development projects and kill the bad ones. Stage-Gate consists of a number of stages typically 5 and concurrent gates from idea discovery to launch (see fgure). At Gate-meetngs, a review board makes regularly go/kill- decisions on all ideas and development projects. The structure for each gate consists of: - Deliverables from a project that typically follow a partcular format that allows you to compare diferent projects - A set of criteria that the project can be measured up against such as market potental, strategic ft, return on investment etc. - Output / outcome of the gate review. Resoluton on the go / no-go typically taken by a review panel - performance and justfcaton must be available for project teams Templates, checklists, guidelines etc. are developed to support the ideaton team and project manager. In theory, the Stage-Gate process ensures only the most prosperous projects to go contnue through the gate. A portolio system has been developed to monitor the total amount of development projects. Current Use: Stage-Gate has since its birth in 1985 become a state-of-the- art system to manage NPD in larger companies. According to Product Development Insttute, Stage-Gate is used in 73 pct of the larger North American Corporates* and in many European companies as well. Stage-Gate are implemented and used in diferent scales - full scale as well as in more lighter versions to capture diferent types of innovaton and development projects (ie. radical, semi-radical, incremental innovaton and line-extension projects). Pros: Stage-Gate ofers a transparent and simple decision-making model with a proven track of best practce examples. It combines development stages with a management model and concurrent easy-to-use tools. It may cut down development tme, motvate for efcient use of development resources and seed the soil for a higher success rate in the market. It can be combined with other methods in the front-End such as Voice-of-Customer, Ethnography, Ideaton etc. It allows for portolio management of all development projects which is ofen modest in the innovaton management process. Cons: Stage-Gate does not in itself ensure the quality of the content of the ideas and projects in the pipeline. furthermore, it motvates for a linear project cycle that does not take into account iteratons that ofen is the defacto process in many development projects. The model is rather corporate / introverted in its nature and does not come up with suggestons on how to manage external sources of innovaton - such as users, customers, suppliers, researchers, experts ie. open innovaton. figure/source**
stage-gate Sample use by DESINOVA company: A larger service company are using the principles of Stage-Gate, though are improving the front-End of Innovaton by using principles and methods from Ethnography, User Innovaton and Strategic Design to feed the Stage-Gate model with higher quality ideas and concepts. www.prod-dev.com Product Development Insttute ** htp://stage-gate.com/ - the ofcial website of Stage-Gate htp://stage-gate.com/knowledge.php - white papers that describes Stage-Gate htp://www.stage-gate.eu/ - European partner on Stage-Gate Links: 38 STRATEGIC PLANNING Sample use by DESINOVA company: In order to prepare across all of its operatng units for radically changing travel habits due to the skyrocketng cost of petroleum-based fuels, a large transportaton company produces and enforces an organizaton-wide strategic plan. htp://en.wikipedia.org/wiki/Strategic_planning Strategic Planning, Wikipedia htp://gbr.pepperdine.edu/032/strategy.html Increasing the firms Strategic Iq, Graziado Business Report, Pepperdine University htp://www.sps.org.uk/ Strategy Development and Implementaton, Strategic Planning Society (Uk) website htp://www.nonproftexpert.com/strategic_planning.htm Strategic Planning for Nonprofts, NonProftExpert.com website htp://www.businessweek.com/smallbiz/content/jan2005/sb20050119_9832_sb037.htm A Beter Scheme for Strategic Planning, Business Week, January 19, 2005 Links: 39 Defniton: Strategic planning is essental to the running of every organizaton, whether it takes place formally, in a coordinated fashion, or haphazardly unit by unit. Strategic planning takes as its fundamental premise that strategy defned simply as getng from where we are now to where we want to go is the proper basis for every organizatonal decision. The origin of the word strategy is revealing: it is the Greek word for both leadership and military command. Strategic planners favor thinking of themselves as helping to lead an organizaton; others may see them as imposing control-and-command, a style of management that is militaristc and hierarchical. Strategic planning can be dynamic or statc. Its methods tend to favor quanttatve tools, but some of the most successful strategic planners are more intuitve. Innovators are likely to be more successful if they can characterize their results in ways that are measurable or emotonally compelling, depending on the strategic planning methods in use within their organizatons. Current Use: Strategic planning occurs in virtually every organizaton, whether in a large organizatons formal strategic planning unit, in operatonal units trying to plan for their separate futures, or in the head of a small organizaton like a family-owned chain of retail outlets. Strategic planning may take place in a separate unit or it may be folded into other units including general management, business development, or marketng. Consultants may be brought in to assist a client organizaton with strategic planning because they are believed to be more objectve regarding the clients future and their plans can be challenged. Pros: Strategic planning gets at the core of organizatonal competency. It focus management on the future, compelling atenton to what must be done for an organizatonal to fulfll its mission by achieving goals in the long term, not just momentarily. Usually it is coordinated and therefore, holistc. Ofen, strategic planners assume leadership positons within organizatons because they have the most complete picture in mind of the organizaton functoning in the evolving public or private environment. Strategic planning, as opposed to operatonal management, ideally takes into account all of the factors that bear on an organizatons ability to functon well, using the most complete and diverse collecton of management tools. Also ideally, strategic planners should be most open to innovaton as a way of solving problems that are impervious to, or even the result of, established ways of doing things. Cons: Strategic planning is a management process that, based on prevailing conditons, comes into and out of favor as a driver of change and a user of innovaton. When tmes are good, managements engage in strategic planning. When tmes are more difcult, managements tend to discount strategic planning as a luxury. Some executve believe that strategy is the property of executve management and that planning strategically at lower levels is contradictory. Strategic planning can constrict innovaton at lower levels. Because strategy is a fundamental process, when things go well, strategic planning is credited. When things go wrong, strategic planning is derided as a useless and only history can tell which judgment is correct.. TRANSFORMATION DESIGN Sample use by DESINOVA company: Observing a fnancial organizatons lack of market success implementng incremental process solutons, an innovator-designer team recommends to executve management a transformaton design project for the entre organizaton. htp://en.wikipedia.org/wiki/Transformaton_design Transformaton Design, Wikipedia htp://www.designcouncil.info/mt/RED/transformatondesign/ Transformaton Design, Uk Design Council RED website with link to TD paper (PDf) and htp://www.partciple. net/ Announcement of Partciple, new company formed by former RED Director Hilary Cotam htp://www.elearnmag.org/subpage.cfm?secton=artcles&artcle=61-1 five or Six questons for Irene McAra-McWilliam, ACM eLearn htp://www.kks.se/upload/diverse_fler/2008/Societal-Entrepreneurship-Programme2.pdf Societal Entrepreneurship Program (Sweden) htp://www.wie.org/j22/hock.asp, Transformaton by Design, WIE (2002), interview with Dee Hock, designer of VISA Card system Links: 40 Defniton: Many designers and design scholars believe that the ultmate evoluton of design, at least as can be foreseen today, is transformaton design (TD). Wikipedia ofers an excellent descripton: Transformaton design is a human-centered, interdisciplinary process that seeks to create desirable and sustainable changes in behavior and form of individuals, systems and organizatons ofen for socially progressive ends. TA is a mult- stage, iteratve process applied to big, complex issues ofen, but not limited to, social issues. Its practtoners examine problems holistcally rather than reductvely to understand relatonships as well as components to beter frame the challenge. They then prototype small-scale systems composed of objects, services, interactons and experiences that support people and organizatons in achievement of a desired change. Successful prototypes are then scaled. Because TD is about applying design skills in non-traditonal territories, it ofen results in non-traditonal design outputs. Projects have resulted in the creaton of new roles, new organizatons, new systems and new policies. These designers are just as likely to shape a job descripton, as they are a new product. Current Use: TD was a response to then-new Uk PM Tony Blairs call to acton by the Uk Design Councils RED unit, led by award-winning designer Hilary Cotam, TD is now applied widely in European public sector projects. Pros: TD recognizes that true innovatons, expressed as design solutons, cannot occur unless there is accompanying change in the social setng and among the partcipatng organizatons and individuals in which the solutons are to be implemented. This applies even to the innovators and designers who are advising the solutons! In many ways, the discourse of TD resembles the discourse of therapy. Context makes a huge diference to the successful implementaton of any design soluton. Because TD takes into account so many factors, if the designers can manage the process, the projects overall success is more likely since the designers are determining the social and environmental contexts for the soluton as well as the soluton itself. Cons: TD requirement are large and all encompassing, with many partcipants to identfy and coordinate, and processes to initate, They can remain incomplete works in progress forever. TD occurs more ofen in the public sector because there performance is measured in the long term, by social indicators. In the private sector, TD is more difcult. Besides the tme and cost burdens associated with practcing complex TD, how many leaders VDs and CEOs are prepared to undertake a personal or corporate transformaton, putng themselves or their organizatons on the line even if transformaton is warranted, even if it means the life or death of the organizaton? History says, not many. TREND ANALYSIS Sample use by DESINOVA company: To beter inform its strategic plans, a health-services organizaton engages trends analysts to describe how patents currently view and use health services and which new technologies and treatments may afect this use, and how. htp://www.henrikvejlgaard.com/?id=161 q&A, Henrik Vejlgaard website (Danish trend analyst and author, Anatomy of a Trend ) htp://www.sirc.org/ Social Issues Research Centre website (leading independent European trend analysis consultancy) htp://iff.org/ Insttute for the future (IfTf) website (pioneering trend analysis organizaton in the USA) htp://sric-bi.com/Explorer/techlist.shtml SRI Consultng-Business Intelligence Explorer Program (technological trend analysis) htp://www.cifs.dk/ Insttut for fremtdsforskning Links: 41 Defniton: Trend analysis is a technique for surveying the current social, politcal, and cultural terrain and determining the opportunites for pursuing a partcular plan or policy. Another term for trend analysis proposed by the eminent sociologist and policy analyst Amitai Etziioni is environmental scanning, looking for clues in the immediate environment and long-term that can tell us how best to bring about a desired plan or policy. There are as many ways to analyze trends as there are types of trends. These fall into two non-exclusive categories, qualitatve methods employing awareness and expert knowledge, and quanttatve methods that employ statstcal tools to parse data. Most analysts use both methods to complement one another and validate the results. Current Use: Numerous consultancies provide trend analysis services to clients in the private and public sectors. In the private sector, marketng and advertsing have long relied on trend analysis to make their plans. In the public sector, trend analysis traditonally was used for policy planning and for politcal campaigns. The popularity of trend analysis has increased as the world has grown more complex and today, virtually every type of enterprise, public, private, and third sector (NGOs and non-proft organizatons), uses one or another form of trend analysis to guide its planning and actvites. Because future realites can be extrapolated from trends, trend analysis is used to forecast the future. Pros: Although anyone can analyze trends (and fads, which are short-lived rends), but experts who are trained and experienced at detectng signifcance based on their clients needs within the constant welter of social, politcal, and cultural phenomena produce the most valuable trends analyses. knowing what existng trends are and their signifcance, clients can then prepare agendas that exploit these trends and that dont work against them (unless that is a clients purpose for example, a public relatons frm that wants to change public opinion). Trend analysis can suggest which innovatons will succeed and which will not, thus permitng innovators to invest their tme, energy, and resources most efectvely, developing innovatons that ft with current or antcipated future realites. Cons: In the present moment, signifcant trends may be difcult to distnguish from short-lived fads. A trend analysis that mistakenly but convincingly identfes fads as trends can be misleading, and even more damaging to an innovaton project than a trend analysis that is blatantly inaccurate. Because the experts who conduct most trends analyses belong to professional networks in which informaton and opinions are shared, entre communites of experts can operate on faulty assumptons (as todays fnancial sector demonstrates). Trends analyses that are only qualitatve or quanttatve require further testng. Defniton: TRIZ is the Russian acronym for Theory of Inventve Problem Solving. TRIZ is a logical, knowledge- and model-based problem-solving methodology and technology that reportedly accelerates team solutons. Its based on (to quote the TRIZ Journal) the hypothesis that there are universal principles of creatvity that are the basis for creatve innovatons that advance technology. If these principles can be identfed and codifed, they can be taught to people to make the process of creatvity more predictable. Sixty years later, TRIZ is stll a research project in progress, but it is widely used by clients who seek breakthrough ideas products and services to gain market superiority. Its soluton path is: specifc Problem general Problem general soluton specifc (Creatve) soluton TRIZ comprises 40 Inventve Principles of Problem Solving as well as various means of classifying and fltering problems so that the right Principle is applied. The Principles in each domain resemble the elements of Christopher Alexanders A Patern Language published to explain the built environment. Current Use: TRIZ was invented in the 1940s by the late Russian engineer Genrick Altshuller. With his death the discipline fractured and now has many practtoners of diferent stripes in many felds. Though most adhere to the basic TRIZ principles, their oferings come in diferent favors; and there are also many derivatve methodologies. Some TRIZ are in the public domain, others are proprietary. Its claimed that major corporatons have made use of TRIZ, but there is no way to confrm this. Pros: Practtoners claim that TRIZ makes problem solving scientfc (which implies that other methodologies and methods are not). By rigorously applying TRIZ principles and processes, consultants and clients allegedly rip through alternatve solutons to complex problems and rapidly come up with the best solutons afer having discarded all of the rest. The infusion of computer power to TRIZ makes this claim more plausible because if creatvity variables can be identfed and isolated, running the numbers basically, comparing all possible permutatons should result in at least a preliminary culling of ideas, which is useful regardless of TRIZ ultmate value to solving a partcular problem. The quanttatve component of TRIZ ensures a certain degree of rigor when choosing variables (Principles) and processing them. Many of the Principles so discovered are alternately cryptc or commonsense but taken together, they supposedly create a matrix of innovatons (or at least, rules) that when followed result in a desired product or service. Cons: TRIZ has assumed the status of a cult among many of its practtoners, in the sense that only the anointed experts, like ancient priests, can successfully lead the way to innovaton nirvana. The TRIZ hypothesis is compelling on its face, but the tests to which it is subjected leave a lot of wiggle room to interpret whether it is valid, generally and in specifc instances. Because many of the TRIZ variatons and their results are proprietary, Its difcult to confrm that TRIZ works the way its champions say it does, let alone that the results are valuable. Relying on TRIZ requires a combinaton of science and faith, something that has not stopped believers from doing good work. Whether using TRIZ was the cause remains to be proven. TRIZ real power may be its ability to inspire the search for innovatve solutons to difcult problems with the certain expectaton that they can and will be found. TRIZ Sample use by DESINOVA company: forced by the inclement economic climate to reconsider its entre business from top to botom, a manufacturer employs TRIZ to eliminate as many unsatsfactory or problematc business alternatves as possible. It then formulates a new business model and derivatve rules for operatons. htp://www.aitriz.org/ Altshuller Insttute for TRIZ Studies (site authorized by Genrich Altshuller) htp://www.triz-journal.com/ The TRIZ Journal htp://www.mazur.net/triz/ TRIZ, Theory of Inventve Problem Solving, Glenn Mazur, 1995 htp://www.innovatontools.com/resources/triz.asp TRIZ Problem Solving Resource Center, InnovatonTools htp://www3.sympatco.ca/karasik/ Ant-TRIZ Journal (Educatng the public in the real TRIZ) htp://en.wikipedia.org/wiki/TRIZ TRIZ, Wikipedia (excellent treatment) Links: 42 USER INNOVATION Sample use by DESINOVA company: A retail chain sets up lead-user panels to provide it with the most current, accurate understanding of how its service satsfes its customers needs and what remains to be done. It callibrates the lead-user advice with customer roundtables to which it invites randomly selected customers. htp://userinnovaton.mit.edu/ MIT User Innovaton Homepage, Professor Eric von Hippl and others htp://usercontributon.intuit.com/ User Contributon System, Scot fosters Wiki htp://www.wwt.at/projects/research_projects/details/index.php?PkEY=807_DE_O Implicatons of Tool kits for User Innovaton and Design Research Project, Nikolaus franke, Vienna University of Economics and Business Administraton. Vienna knowledge, Research & Technology fund, 2009 htp://www.ebst.dk/innovaton_og_bdi Programme for user-driven innovaton, Danish Enterprise and Constructon Authority (EBST), 2009 (also in Danish) htp://www.kks.se/templates/StandardPage.aspx?id=12615 Societal Entrepreneurship, kk Stfelsen (Sweden) Links: 43 Defniton: The concept of user innovaton, or user-driven innovaton, is the intellectual basis for the many methods of innovaton that require partcipaton by users: customers in business and citzens in government. MIT professor Eric von Hippl frst wrote about the concept in 1986. von Hippl identfed end users as the people who actually use a product or service, not its creators or the intermediaries who sell or deliver it. von Hippl recommended that manufacturers and service providers set up lead-user panels to obtain expert advice and valuable ideas from top customers with a stake in a products development, because they intensively use the product. Scot Cook, the inventor of Intuit sofware, in 2008 created the User Contributon System as a way to facilitate and broaden the collecton and review of user generated ideas, opinions, and advice. The DESINOVA project has user innovaton as one of its foundatonal methodologies. Current Use: User innovaton is practced in every modern industrial economy and by every modern government to a greater or lesser degree. The enhanced global informaton environment supported by the Internet has made customers and citzens beter informed and capable of more easily sharing their experiences with planners, business innovators, and designers. This represents a quantum leap in the intelligence that can be applied to solving problems and innovaton solutons in the economic and social spheres. The existence of online surveys, forums, opinion websites, and reputatonal ranking systems makes user involvement almost ubiquitous. In the feld, applied ethnography, in-person focus groups, and design events give user innovaton a tangible reality. User innovaton has been proposed as an essental element of modern democracy that should be formalized in law and enabled via various systems. Pros: User innovaton is now an innovaton-management axiom. User innovaton is now as central to the practce of innovaton as any other single concept. Although there are critcs who dispute the proftability of user involvement it takes efort or who credit creatve inspiraton with the best outcomes, most business innovators pay tribute to the concept (even if they occasionally stray from its tenets in practce). User involvement has proven its worth. At the least, users can comment on existng solutons to problems they experience, helping business innovators to zero in on the proper decision space. Users can make suggestons that lead to superior innovatons or, in the best case, actually propose innovatons that have extra value because they originate with the customer or citzen. The Uk was the frst society to require government agencies and public services to publish charters of customers rights. Besides penaltes paid for poor service, these charters which are considered binding contracts also specify how agencies and service providers must interact with customers who suggest improvements, thus making user innovaton a conditon of performance and a part of the law. The same ideal of user innovaton and responsibility to customers and citzens to consider their advice prevails in Northern Europe, although in most instances it has yet to be turned into law. Swedens Societal Entrepreneurship takes this to the ultmate conclusion, insttutonalized revoluton as a soluton for problems too large for conventonal governance. Cons: The arguments against user innovaton grow weaker, boiled down to two: (1) the cost and difculty of implementng user innovaton programs and (2) the lack of quality control when users become involved. A third critcism, now seldom heard, is that involving users means revealing IP secrets and organizatonal weaknesses. Even critcal users can become advocates when brought into an organizatons inner circle of advisors, something the Web makes easier. virtual WorlDs anD mental moDels Sample use by DESINOVA company: A designer has her clients executves describe the how they mentally see their business, not just as an organizaton but also as a structure of connectons and forces. She then creates virtual worlds that can be reviewed and critqued. htp://sloanreview.mit.edu/wsj/insight/pdfs/3211.pdf Peter Senge, The Leaders New Work: Building Learning Organizatons, MIT Sloan School Management Review, fall 1990. htp://www.tcd.ie/Psychology/Ruth_Byrne/mental_models/ Mental Models website htp://www.rosenfeldmedia.com/books/mental-models/ Aligning Design Strategy with Human Behavior, Louis Rosenfeld website htp://www.managementhelp.org/systems/systems.htm Systems Theory, Carter McNamara, free Management Library Links: 44 Defniton: Virtual world can mean many things. Of late, its meaning has been appropriated by online games and services like Second Life and There, to indicate alternate realites sustained by informaton technology. A meaning that is more appropriate to our project, however, and the original meaning, was given by the organizatonal theorist Peter Senge: the mental, multdimensional picture or model of an organizaton in operaton held in the mind of an executve, manager, worker, customer, or other stakeholder. This virtual world can be illustrated or simulated and thus made interactve, so that its structure can be altered to produce alternatve methods of operatons and management. Since Senge provided that defniton in 1980, the concept of the virtual world has grown to encompass markets, policy domains, and other phenomena; and discreet objects and forces, like CAD models and GIS. Current Use: Virtual worlds have been simulated to illustrate how individuals see their organizatons and what needs to be done to improve the organizaton or the experience of working within it and with it. Many professions work with virtual worlds in this way, including planning, therapy, architecture and civil engineering, and so forth. More recently, online virtual worlds have received a lot of publicity, but objectve measures of these systems value have not been encouraging. New technology will make it easier to capture and share mental virtual worlds. Pros: Virtual worlds exist in everyones mind. They are a potental universal language of forms and forces that, when translated into graphics, prose and poetry, and as freestanding mult-dimensional models, provide almost immediate shared informaton and frequently, understanding. Scientsts, engineers, doctors and designers commonly use depictons of virtual worlds to portray invisible and obscure relatonships among objects and with their environments. Rendering or building a virtual world model Is one way to make complex phenomena simple to understand and because they are the basis of simulatons, easier to work with throughout the product- or service lifestyle. Cons: Virtual worlds are only as good as the data that informs them. If there are gaps in knowledge or the facts are wrong, the virtual worlds that result will also be inappropriate. (Although, a failed virtual world as does any well- constructed model -- points out where knowledge is lacking or wrong a virtue.) Ofen, individuals work from virtual worlds that are misleading because they are incomplete or composed of incorrect informaton purposely induced by others for their own purposes. New technological forms of virtual worlds (like Second Life) are not as rich and informatve as the virtual worlds we hold in our minds that an artst, designer, or therapist can translate into a shareable form. This may change with tme. WeB 2.0 anD BeyonD (mashuPs, WeB tools, soCial netWorks, etC.) Sample use by DESINOVA company: A growing network of private medical facilites uses the Web to provide informaton to patents; sell its services to new customers; coordinate services among medical stafs; and manage its inventory of beds, technology, and supplies. htp://en.wikipedia.org/wiki/Web_2 Web 2.0, Wikipedia htp://www.oreillynet.com/pub/a/oreilly/tm/news/2005/09/30/what-is-web-20.html What is Web 2.0? Tim OReilly, OReilly website htp://www.webguild.org/2008/04/shame-on-you-tm-oreilly.php Shame on you, Tim OReilly, Webguild.com, April 24, 2008 htp://www.techsoup.org/toolkits/web2/ Everything you need to know about Web 2.0, TechSoup.com (website for social entrepreneurs) htp://www.schillmania.com/content/opinion/2005/10/dont-believe-the-web-20-hype/ Dont Believe the Web 2.0 Hype! Schillmania.com Links: 45 Defniton: Web 2.0 is the term associated with the entre range of technical and social innovatons that has emerged to characterize the Web the graphical, largely inter-human component of the Internet as a thoroughly social phenomenon. Web 2.0 innovatons include: Advanced search Google and specialized niche-search Web-based services Travel, fnance, sofware, entertainment, and other services ofered via the Web, ofen exclusively (only on the Web) Mashups Combinatons of services (e.g., maps and travel informaton) Web-based social networks MySpace, facebook, and many more specialized communites based on Web connectons; blogging Convergent media Computer, cellphone (voice and text), video and audio broadcast, and similar services available across all media The next evoluton of the Web, labeled Web 3.0, will feature ubiquity (computng everywhere), embedded intelligence in physical objects, and semantc wisdom the ability of the Web to antcipate users needs and respond accordingly. Current Use: Web 2.0 is a functon of the use of the Internet by large numbers of people in all walks of life. Its evoluton is a consequence of this use. The free, commercial use of the term Web 2.0 is now impeded by a highly controversial trademark awarded to OReilly Books (a computer book publisher). Pros: The inital use for the term Web 2.0 was as a device to persuade investors to fund new services, but its proven socially benefcial as a prod to independent development as well. Being a part of Web 2.0 meant to be on the forefront of media and communicatons developments. As a result, open- source and other communal development projects, many without obvious sources of outside support but ofen with social benefts have become more common. Another aspect of Web 2.0 is the fuller integraton of ofine life and online experience: the actvity of people online is not just computer play; its fundamentally a part of contemporary life in advanced societes. Web 2.0 has another dimension: Web and computer use is now universal, potentally empowering individuals in the developing world to play a more decisive part in the global economy and society. Cons: Many observers believe Web 2.0 is nothing more than a marketng device for Internet entrepreneurs and the investors who bank them. They say that OReillys trade marking the term is a direct slap in the face of Web 2.0 advocates, directly contrary to the Web 2.0 ethos. More to the point, critcs note that many Web 2.0 services are redundant; trivial in terms of the services content; and because of Web 2.0s data intensively and personalizaton, terrifcally invasive of personal privacy. from an economic standpoint, free services like fle-sharing of copyright material are problematc, with the potental for dampening creatve inventon. WisDom of the masses Sample use by DESINOVA company: Examining the popular and press discourse for key trends that are signifcant to a service companys longer-term goals, a designer uses Digg to fnd those artcles and online publicatons most highly rated for this purpose. htp://www.amazon.com/Wisdom-Crowds-Collectve-Economies-Societes/dp/0385503865 Wisdom of Crowds, James Surowiecki htp://www.businessweek.com/magazine/content/06_39/b4002422.htm Crowdsourcing, Business Week, September 25, 2006 htp://www.smartmobs.com/ SmartMobs:The Next Social Revoluton, Howard Rheingold blog (author of Smart Mobs book) htp://select.nytmes.com/iht/2007/08/08/opinion/IHT-08edcohen.1.html Is there a wisdom in crowds? Roger Cohen, NY Times, August 8, 2007 Links: 46 Defniton: The Wisdom of the Masses (also known as the Wisdom of Crowds) is a hypothesis in social science and heuristcs. It claims that the collectve opinions of a vast number of people will usually produce more creatve and beter solutons to a problem than the opinion of one or a few experts in a feld. The hypothesis is testable but not provable, as every report, confrming or denying, can be dismissed as statstcally insignifcant given the vast number of decisions that are made by the masses each and every day. Nevertheless, the hypothesis has produced signifcant products with global audiences used on an everyday basis: Wikipedia, Digg, Twiter, and so forth. Current Use: The Wisdom of the Masses is the basis for predicton markets and similar tools used to forecast future events. It provides a ratonale, if not an absolute proof, for systems that gather informaton from great numbers of people, the results of which become proprietary informaton (of risk management companies or politcal campaigns, for example) or informaton refected back to the public in order to change popular perceptons and opinions. Most of these systems are of recent origin and have yet to be thoroughly studied and critqued, but one of the most common of mood barometers the public opinion survey, or poll is now considered a relatvely reliable tool of measurement. Most polls are taken among pre-selected audiences, but increasingly, many are not. Pros: The Wisdom of the Masses is the logical foundaton (and excuse) for such common phenomena as trading markets and politcal governance. It is assumed in these cases that the masses are in fact comprised of large populatons of individuals who are relatvely knowledgeable. The hypothesis feels right and in keeping with democratc theory and aspiratons. Even if the hypothesis is not entrely correct, it seems to produce correct estmates of situatons and solutons to problems enough so that we can say that something is happening when multtudes of people contribute their knowledge to a search for the truth. Cons: Markets fail on a regular basis, throwing into doubt the Wisdom of the Masses. The alternatve is command and control exerted by one or a small number of leaders. Since modern societes generally fnd this alternatve abhorrent, they willingly close one eye when gauging the value of Wisdom of the Masses as a concept used by business and governments. Even if the hypothesis succeeds in explaining certain good societal choices, it is not absolutely the case that Wisdom of the Masses is responsible. The concept remains and may always be problematc, since it is so difcult if not impossible to prove as a general case.