Design Thinking: How To Transform Your Organization

©SAP AG 2005, , DST ©SAP AG 2005SAP CONFIDENTIAL

the design services teamHow SAP is using design thinking to change its DNA

Matthew HollowayVice President, Design Services TeamOffice of the CEO

13 June 2006

©SAP AG 2005, , DSTSAP CONFIDENTIAL ©SAP AG 2005


“companies are accelerating efforts to change their cultures, foster innovation, and serve customers more effectively. Innovation, or "design thinking," is, we believe, something truly important and enduring”


Design is a way of changing life and influencing the futureSir Ernest HallPianist, Entrepreneur, and Philanthropist

The ultimate defense against complexityDavid GelernterProfessor of Computer Science, Yale

Simplicity is the ultimate sophistication. Leonardo da Vinci

”“

©SAP AG 2005, , DSTSAP CONFIDENTIAL ©SAP AG 2005SAP CONFIDENTIAL ©SAP AG 2005


Global IP

Global Communications

Global Internal Audit

Corporate Strategy Management

Top Talent Management

Office of the CEO HENNING

Chairman of the Supervisory Board HASSO

Research& Breakthr. Innovation

PETER

Product

SHAI

CSO

LÉO

Global Svc & Support

GERHARD

Production

CLAUS

Finance & Administration WERNER

Human Resources & Processes

CLAUS

Biz. Process Renovation Mgmt

Design Services Team

Corporate Consulting Team


Accelerate adoption of Design Thinking as the process for innovation and development

of internal and external SAP products and services in all areas of the SAP Value Chain.


Design Servic

es Team

Design Servic

es Team

Traditional Design Teams

Agent for Change

Functional Design

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©SAP AG 2005, , DST ©SAP AG 2005SAP CONFIDENTIAL

why design thinking?


so what?


A Focus on Customers/Users. Broad, Multi-Disciplinary Influences.

Ideation with Prototyping. Finding Alternatives.

Wicked Problems. Emotion.

No more “so what?”

Design Thinking



“These crazy guys will never deliver a product”

“Give me the budget and I will deliver whatever you want”

“We have to concentrate on what we are good at”

“The new ideas are interesting but we don’t have the time or necessity”

Must do: Best Practices andContinuous Innovation

To Win:Differentiation and Breakthrough Innovation

“If we don’t change now it will be too late”

“We have to stop living in the past regardless of the success we had”

“New things are possible, we only have to have the will to want them”

“There are better ways to do it”

Left Brain Says: Right Brain Says:


ReliabilityValidityInnovation = Invention x Execution

from “Innovation by Design” by Gerard H. Gaynor


Validity• Produces consistent and

predictable results over and over

• Produces the right answer for the current context • Requires a reduced number

of variables considered • One must consider a wide

array of relevant variables

• Uses quantitative, bias-free measurement

• Substantiation is based on future events

• Uses inductive & deductive logic

• Uses inductive, deductive logic and abductive logic

From “Validity vs. Reliability, Implications for Management” by Roger Martin

Reliabilityvs.



•How quickly can I configure the solution to suit my needs?

•Is the solution easy to maintain?•Is it consistent with my current system landscape?

•Can the solution be easily supported?

•Does the solution show

empathy for end-users?

•Is this the simplest solution that gets the job done?

•Is it elegant?•Is it useful?

•Can we afford it?

•Does it make me more profitable?

•Do we have the skills?

•What is my ROI?

feasibilitytechnical

needs

desirabilityhuman needs

viabilitybusiness

needs


Results of the Research, Artifacts, Pictures

Needs & MotivationsUser profilesUse cases

RoughPrototypes Feedback from users & stakeholders

Resu

lts Low-fidelity

PrototypesFeedback from users & stakeholders

Project PlanResources

High-Fidelity prototypes and/or design specifications

Observe Synthesis

Design

Assess &Refine

Prototype ImplementUnderstandDevelop iterative Prototypes and test with Users

Interview &ObserveEnd Users in their work place

Identify Needs,Motivations & Ideas for Solutions

Deliver a prototype to Solution Development

Wh

at

Scope Project & define objectives and outcomes

Work with Development to build the final design


Goals

Objectives

Ma

rket

Competition Organizations

Cul

ture

People

Observation

Act

iviti

es

Artifacts

Inte

rvie

ws

Step 1: Explore the problem space through fact finding and then assemble a 360º view.



Goals

Objectives

Act

iviti

es

Desirability

Feas

ibili

tyViability

Ma

rket

Competition

Artifacts

Organizations

Cul

ture

People

Observation

Inte

rvie

ws

Step 2: Reduce the solution space through decisions that balance desirability, viability, and feasibility.


The Rules: 1.One Conversation2.Stay Focused3.Encourage Wild Ideas4.Build on the Ideas of Others5.Defer Judgment


Goals

Objectives

Act

iviti

es

Prototypes

Ma

rket

Competition

Artifacts

Organizations

Cul

ture

People

Observation

Inte

rvie

ws

Desirability

Feas

ibili

tyViability

Step 3: Create relevant prototypes quickly and iteratively.


Low EffortLow FidelityShort CycleGeneric Feedback

High EffortHigh FidelityLong CycleSpecific Feedback

Sketches Mock-ups Wire Frames HTML Flash Functional Code

PROTOTYPES:•Must evoke an emotional response•Must be technically relevant•Fail early, fail cheaply•Communicate the vision•Become a model for realization


The prototype must communicate design intent to both internal and

external constituencies

Design

Prototype

Rapid End User Feedbac

k sales

deve

lopm

ent

mar

ketin

gservices

customers

partn

ers

cust

omer

’s

cust

omer

s

end users

Multiple iterations continue the dialog between the design team

and the end-users

Packaging the design for sharing

Prototypes are effective for communicating intent & feedback with everyone.


Design intent must not be lost when design models are converted to engineering models

Handing off the design to engineering and walking away does not work!

Design must remain engaged and empowered to weigh-in on every significant engineering trade-off

Some of the most valuable feedback to inform future designs is only received after the solution has been released to the market

In re-design, the hardest part is to leave the beaten track

Existing solutions must not be allowed to dominate the redesign discussions.


Empathy & Passion

Creativity & Innovation

Designers & MBA’s


?…ask ‘em if you got ‘em

Business

Design Thinking: How To Transform Your Organization