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Harsh Jawharkar
Background
Previously
IDEO Service Innovation & Human Factors
HSBC Consumer Insights & Experience Modeling
Sapient User Experience Modeling
IPM Management Consulting
Interests
Service and product innovation models
Business strategies driven by a design-thinking mindset
January 2007 2
Innovation Buzzword, Fad, or Bellwether?
innovation buzzword
Thesaurus: Thesaurus:
something (as a device) created for the first time stock phrases that have become nonsense through
through the use of the imagination endless repetition
January 2007 4
Innovation is catalyzed by an opportunity to close the gap
Skillsets
Linear
Data driven
Left Brain Outcome oriented
Sequential Focused on the end
Rational
Analytical
Objective
Looks at parts
OPPORTUNITY
Right Brain
Intuitive
Holistic
Synthesizing
Skillsets Subjective
Empathic Looks at wholes
Observation driven
Experience oriented
Focused on the journey
January 2007 5
Design thinking is an attitude, an approach a mindset
Consumers Consumers
Front-line Personnel Front-line Personnel
Customer Service Customer Service
Sales & Marketing Sales & Marketing
Operations Operations
C Level
C Level
Design Firms
People
$$$
Change
Management
January 2007 7
Design firms are attempting to develop operational capabilities
Design Focus
IDEO
Astro frog
Smart Design Jump Desired Skill-set
Method
Herbst Lazar Bell ZIBA Continuum and
Lunar Positioning
Cheskin
SonicRim
Fitch
Strategos
Sapient Organic
Mercer McKinsey
Business Focus
January 2007 9
What else can design-thinking do for you?
January 2007 10
Elements of design thinking
Observation
Empathy
Ideation
Prototyping
Being T-Shaped
January 2007 11
Observation
Ethnographic Techniques
Ethnography
Observing people in their
natural environments
Behavioral Mapping
Photographing people within
a space, such as a hospital
waiting room, over two or
three days.
Consumer Journey
Keeping track of all the
interactions a consumer has
with a product, service, or
space.
Camera Journals
Asking consumers to keep
visual diaries of their
activities and impressions
relating to a product.
Storytelling
Prompting people to tell
personal stories about their
consumer experiences.
January 2007 12
Empathy
1 2 3
1. Moderately protected
2. Easily accessible
3. Staging area for major objects
January 2007 13
Ideation
Brainstorming
Defer judgment
Build on the ideas
of others
Encourage wild
ideas
Go for quantity.
100 ideas in 60
minutes
Be visual
Stay focused
One conversation
January 2007 14
Conceptualization (Building a Behavioral Model)
ENVIRONMENTS
Sometimes Online & Often Offline Mostly Offline Almost Always Offline
RETAIL
Shop for Shop for Apply for Shop for Shop for
Deposit Review
Credit Deposit Deposit The Bridge Loans & Service
Checks Statements
Entrepreneurs Cards Products Products Entrepreneurs are credit hungry and LoC's products
inherit behaviors this is the point of reference they
from their seek in terms of business legitimacy
Personal Banking Pay Bills Apply for Apply for Apply for
and sustainability. Service
experiences Transfer Credit Loans &
Funds Cards LoC's products
January 2007 15
Prototyping (Test and Validate)
OR
January 2007 16
Being T-Shaped
Brainstorming Facilitating
ALTERNATIVES:
ACTIVITIES
are goal directed sets POEMS
of actions-things
which people want to People
accomplish Objects
Environments
Messages
Services
About IDEO
Pronounced Eye-dee-oh
500 designers
HQ in Palo Alto
Offices in San Francisco,
Chicago, Boston, London,
Munich, and Shanghai
CEO Tim Brown
Cofounders David Kelley
(Stanford) and Bill Moggridge
Notable concepts
The first mouse
Palm V
Handspring Treo
January 2007 19
Environment
OFFICE
Informal
Customizable
Stimulating
Collaborative
January 2007 20
People
Eclectic
Unusual
Diverse
Right-brained
January 2007 21
Capabilities
Product Design
Human Factors
Interface Design
January 2007 22
Innovation requires going beyond the realm of pushing products
Wal-mart Toyota
X Bank Dunkin
Donuts
Products X Grocery
Store Samsung
(Attributes)
The Gap
Apple Blackberry
Whole Foods Harley
Davidson
Starbucks
Lifestyles Google
(Values) TiVo
IKEA
January 2007 23
Windows Mobile vs. the potential iPhone
FEATURE
SMS
Camera
Maps
Browser
Music/Video
Email
Widgets
January 2007 25
Project Examples
January 2007 26
Case in Point The Gap
Background
Opened in the summer of 69 in San Francisco
More than 3000 stores and $16 B in revenues
Profit margins (6.5%) half of industry average
Same-store sales are 8% lower (Dec 2005-2006)
Healthy Banana, sinking Navy, wider Gap
Called Goldman Sachs to explore all options
January 2007 27
Traditional Approach
Pricing pressure
Volumes
Penetration
Purchase frequency
Revenues
Transaction size
Transaction value
Product mix
Customer mix & segmentation Generate hypotheses
Define data requirements
Gather and organize data
Analyze data to identify key
issues
Fixed real-estate footprint
Size of stores
Portfolio rationalization
Costs (Gap, Banana, Old Navy)
Variable labor costs
Material costs and sourcing
strategies
January 2007 28
Design-thinking Approach
Environments, Interactions, & Objects
How do you plan a trip to The Gap?
Is it scheduled or impulsive?
ENVIRONMENTS
Whats the trail between the desire and the
purchase?
Is it direct or does it involve browsing?
INTERACTIONS
OBJECTS Should it be accelerated or indulged?
How do users interact within the store?
With the merchandise?
USERS With other shoppers, store personnel?
With stimuli (light, sound, sense, smell)?
ACTIVITIES
January 2007 29
Resources
January 2007 30