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An increasingly complex ecosystem requires business leaders to adopt a different kind of skillset and mindset, a mindset that is common among design professionals.
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E X E R C I S E # 1 :
“What is it that designers do?”
Business needs design now, more than ever.
“Design, in short, is becoming an ever more
important engine of corporate profit: It's
no longer enough simply to outperform the
competition; to thrive in a world of
ceaseless and rapid change, businesspeople
have to outimagine the competition as well.
They must begin to think – to become –
more like designers.
-Roger Martin, dean of the Rotman B-school
http://www.fastcompany.com/magazine/109/open_design-tough-love.html
“Design, in short, is becoming an ever more
important engine of corporate profit: It's
no longer enough simply to outperform the
competition; to thrive in a world of
ceaseless and rapid change, businesspeople
have to outimagine the competition as well.
They must begin to think – to become –
more like designers.
-Roger Martin, dean of the Rotman B-school
What kind of design?
http://www.fastcompany.com/magazine/109/open_design-tough-love.html
Product design
Product Design
Experience Design
Product Design
Design of Business
Experience Design
Design of Business
Digital Music, c.2001
Design of Business
Hard Drive?
Flash drive?
MP3 CD?
Wav?
MP what?
MP2?
MP3?
AIFF?
‘Rip’ my CD?Digital Music, c.2001
Design of Business
Hard Drive?
Flash drive?
MP3 CD?
Wav?
MP what?
MP2?
MP3?
AIFF?
‘Rip’ my CD?“No Market Leader”
Design of Business
Hard Drive?
Flash drive?
MP3 CD?
Wav?
MP what?
MP2?
MP3?
AIFF?
‘Rip’ my CD?
Design of Business
Hard Drive?
Flash drive?
MP3 CD?
Wav?
MP what?
MP2?
MP3?
AIFF?
‘Rip’ my CD?
“value of the network”
www.andrewhargadon.com/Release/Hargadon_DMR_Leading_by_Design.pdf
Design of Business
Product Design
Experience Design
lifestyle devices
transparent digital audio
formats
easy importing of music from CDs and other ‘sources’ (ahem!)
Design as process
Design as outcome
Design as process
Design as outcome
Jess McMullinwww.bplusd.org
Design as process
Design as outcome
Jess McMullinwww.bplusd.org
Design as process
Design as outcome
Jess McMullinwww.bplusd.org
Design as process
Design as outcome
Design as process
Design as outcome
same thinking skills
(different application)
Design as process
Design as outcome
same thinking skills
(different application)
...and a different perspective to traditional strategy-making
Business needs design now, more than ever.
Business needs design now, more than ever.
Why now?
A N S W E R # 1 :
the limits of efficiencies.
Why design is needed now!
New sources of competitive advantage:
1960s & 1970s
Making things cheaperAdvantage from Cost Division of labor, MTS,
mass production
1980s & 1990s
Making things betterAdvantages from Quality and Speed Lean, JIT,
!exible specialization, automation
2000s
Making better thingsAdvantages from Aesthetics and Authenticity,
Design, innovation, uniqueness
Source: Stuart Rosenfeld, Regional Technology Strategies, Inc. (2006)
this view leads to ‘design’ as a differentiator:
this view leads to ‘design’ as a differentiator:
But ‘design’ in this sense is about something you produce - an outcome.
this view leads to ‘design’ as a differentiator:
But ‘design’ in this sense is about something you produce - an outcome.
What if the Strategy is flawed?
A N S W E R # 2 :
increasingly complexinterdependent ecosystems
Why design is needed now!
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition
3rd Party Developers
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition
3rd Party Developers
Government Regulations
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition
3rd Party Developers
Global Market
Government Regulations
http://darmano.typepad.com/logic_emotion/2007/01/sobering_though.html
Coopetition
3rd Party Developers
Global Market
Government Regulations
“The iPhone is a cool product. But it can be revolutionary if it becomes a cool ecosystem.”
Bruce Nussbaum, Business Week
increasingly complex
increasingly complex
increasing interdependence
social changeglobalization
economic & political uncertainty
new forms of competition
a networked economy
a value chain that can’t be controlled
mergers & acquisitions
commoditization of goods & services
environmental degradation
rate of technology change
deregulation & privatization
The long term winners in complex ecologies are those that fit with an environment, compete within a context of cooperation, and create systems that become increasingly complex while remaining extremely flexible.
“...we must understand that businesses are complex systems;
each is composed of myriad independent "parts" (employees,
information systems, teams, customers, partners, and so on)
that work together to meet business goals. What makes them
complex is their endless variety of parts (e.g., no two
employees are the same) and the sophisticated web of
relationships they make up.
This inherent complexity makes the behavior of the business
largely unpredictable, and generally uncontrollable by those
relatively few parts in leadership positions (just as ant colonies
or bee swarms are not controlled by their respective queens).
-Marc Rix, Chaotic IT
http://chaoticit.blogspot.com/2007/02/chaotic-innovation-give-mavericks-keys.html
organizations as organisms
“Wait, are we talking about business or biology?”
“My countless conversations with boards of
directors and senior management have
revealed that these people are unfamiliar
with current thinking... thinking that has
been accepted by scientists and philosophers
for decades.
These very same breakthroughs in thinking
are responsible for generating the
technologies that are reshaping life for
everyone in the world and are being applied
in every science and by virtually every
master practitioner in all fields of human
endeavor. Politics, business, and education
have managed to remain far behind in their
integration of new thinking.
We are no longer in an Industrial Era.
(yet we still manage things as if we were)
T H E P R O B L E M :
E X E R C I S E # 2 :
The next time you are sitting in an executive or
management meeting, or anywhere that people accountable
for the performance of a corporation are engaged in a
discussion, listen very carefully to what is said.
Listen to the ideas, and notice if they resonate with a new
way of thinking - a way of thinking that is capable of
achieving a marketplace advantage in today’s rapidly
changing environment.
As you listen, set aside the current buzzwords and notice
what remains. Do you hear theory that is different from
what you might have heard decades ago?
“Beat the competition!”
What kind of thinking would produce this statement?
Is this a finite game with agreed on rules and a clear winner? Are we at war with someone? Are there clearly defined players? Are the stakes defined? How will we know when we’ve won? Is this really a worthwhile goal?
A complex ecosystem requires business leaders to adopt a different kind of skillset and mindset.
Business needs design now, more than ever.
Business needs design now, more than ever.a Design
Mindset!
This is not about having ‘design’ in your title (or not).
This is about a mindset and skillset that can produce better results.
A ‘design’ mindset.
“The trouble is, when confronted with a mystery,
most linear business types resort to what they
know best: They crunch the numbers, analyze,
and ultimately redefine the problem “so it isn’t a
mystery anymore; it’s something they’ve done 12
times before,” Martin says. Most don’t avail
themselves of the designer’s tools — they don’t
think like designers — and so they are ill-prepared
for an economy where the winners are
determined by design.
http://www.fastcompany.com/magazine/93/design.html
“So, what are the differences?”
planning vs thinking
solving vs framing
planning vs thinking
solving vs framing
planning vs thinking
decision attitude vs design attitude
solving vs framing
planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
solving vs framing
planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
process vs play
solving vs framing
planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
process vs play
analysis vs synthesis
solving vs framing
planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
process vs play
analysis vs synthesis
These are still important
solving vs framing
planning vs thinking
decision attitude vs design attitude
exhortations vs strategic intent
process vs play
analysis vs synthesis
These are still important
But these are vital
Design minded folks are really good at: Observation. Framing problems. Prototyping solutions. Working with imperfect data. Focusing on people. Caring about the details. Creating narratives. Envisioning unseen opportunities. Casting visions of the future. Synthesizing information. Systems thinking. Abductive thinking.
Increasing Complexity
needs really good
Problem Framing
to enable
Revolutionary Solutions
Increasing Complexity
needs really good
Problem Framing
to enable
Revolutionary Solutions
Design thinking is needed here!!
E X E R C I S E # 1 :
“What is it that designers do?”
“Everyone designs who devises courses of action aimed at changing existing situations into preferred ones.”
- Herbert Simon
What is possible?
Not what is likely, what’s probable, or what’s predictable.
What is possible?
“The best way to predict the future is to invent it.”
- Alan Kay
MY PERSONAL SITEME
THE BEST WAY TO REACH ME
Highlyrecommendedreading:
www.andrewhargadon.com/Release/Hargadon_DMR_Leading_by_Design.pdf