The Value Design Brings to Business (WebVisions Portland 2016)

THE VALUE DESIGN BRINGS TO BUSINESS

Nathan Shedroff California College of the Arts [email protected] @nathanshedroff

designmba.org

mailto:[email protected]

NATHAN SHEDROFF nathan.com @nathanshedroff


M A K E I T S O Interaction Design Lessons from Science Fiction

b y N AT H A N S H E DR OF F & C H R I S TOP H E R NOE S S E L

foreword by Bruce Sterling

Many designers enjoy the interfaces seen in science fiction films

and television shows. Freed from the rigorous constraints of designing

for real users, sci-fi production designers develop blue-sky interfaces

that are inspiring, humorous, and even instructive. By carefully studying

these “outsider” user interfaces, designers can derive lessons that make

their real-world designs more cutting edge and successful.

“Designers who love science fiction will go bananas over Shedroff and Noessel’s delightful and informative book on how interaction design in sci-fi movies informs interaction design in the real world. . . . You will find it as useful as any design textbook, but a whole lot more fun.”

ALAN COOPER“Father of Visual Basic” and author of The Inmates Are Running the Asylum

“Part futurist treatise, part design manual, and part cultural analysis, Make It So is a fascinatinginvestigation of an often-overlooked topic: how sci-fi influences the development of tomorrow’s machine interfaces.”

ANNALEE NEWITZEditor, io9 blog

“Shedroff and Noessel have created one of the most thorough and insightful studies ever made of this domain.”

MARK COLERANVisual designer of interfaces for movies (credits include The Bourne Identity, The Island, and Lara Croft: Tomb Raider)

“Every geek’s wet dream: a science fiction and interface design book rolled into one.”

MARIA GIUDICECEO and Founder, Hot Studio

www.rosenfeldmedia.com

MORE ON MAKE IT SOwww.rosenfeldmedia.com/books/science-fiction-interface/

MAK

E IT SO

by NATH

AN SH

EDR

OFF &

CHR

ISTOPH

ER N

OESSEL

Experience Design 1.1a manifesto for the design of experiences

by Nathan Shedroff

product taxonomies 16

user behavior 116

100 years 22

information 42

takeaways 28

data 36

knowledge 48

subjectivity 78

consistency 96

navigation 84


user behavior 116

experiences 4

experience taxonomies 10

100 years 22

wisdom 54

information 42

takeaways 28

data 36

knowledge 48

subjectivity 78

consistency 96navigation 84

Design Strategy in ActionEdited by Nathan Shedroff

A publication from the MBA in Design Strategy programCalifornia College of the Arts

2011

2008 Edition

Dictionary ofSustainable Management


MBA IN DESIGN STRATEGY MBA IN STRATEGIC FORESIGHT


VALUE


$ £ ¤ ¥

Photo: epsos (Flickr)


$ £ ¤ ¥ function

Photo: bengt-re (Flickr)


function

CLV = GC • - M •∑i = 0

n

(1 + d) ir i ∑

i = 1

n

(1 + d) i - 0.5r i - 1

GC = gross contribution per customerM = (relevant) retention costs per customer per year n = horizon (in years)r = yearly retention rated = yearly discount rate.

(Lifetime Customer Value)

Photo: southernfoodwaysalliance (Flickr)


(V/S)b = Enterprise Value / Sales ratio of the firm with the benefit of the brand name(V/S)g = Enterprise Value / Sales ratio of the firm with the generic product Let's use as an example branded cereals maker like Kellogg (K) against a generic provider like Ralcorp (RAH). Value of Kellogg brand name = (1.78 - 1.32)(13846) = $6,369 MillionThus, (6369/24200) or 26% of the value of the company is derived from brand equity.

{ (V/S)b - (V/S)g}* Sales $ £ ¤ ¥ function

(BRAND)

http://seekingalpha.com/symbol/k

http://seekingalpha.com/symbol/rah


meaning identity emotion

price function

Photo: mynameisharsha (Flickr)




price function



price function

RELATIONSHIP


EXPERIENCE


price function


EXPERIENCE


price function

NEEDSOFFER

INTENT

user customer audience participant employee citizen company NGO agency brand family friend stranger

user customer audience

participant employee

citizen company

NGO agency

brand family friend

stranger


Photo: 36081663@N00 (Flickr)


Juabar


meaning identity

emotion price

function



price function

QUANTITATIVE QUALITATIVE


Photo: hypophyse (Flickr)



price function

QUANTITATIVE QUALITATIVE

+ + + += TOTAL VALUE



price function

“BOOK VALUE” “GOOD WILL”

+ + + += TOTAL VALUE


TOTAL VALUE(PREMIUM VALUE)

FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE =

QUANTITATIVE

QUALITATIVE


TOTAL VALUE

FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE

$1.1B =

Instagram


$1.1BInstagram

TOTAL VALUE

FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE=

$86M


$1.1BInstagram

TOTAL VALUE

FUNCTIONAL VALUE + FINANCIAL VALUE + EMOTIONAL VALUE + IDENTITY VALUE + MEANINGFUL VALUE=

$86M

$1.01B





EXPERIENCE CREATES VALUE


EXPERIENCE CREATES VALUE

THOSE COMPANIES (AND PEOPLE)

WHO FOCUS ON TOTAL VALUE

CREATE MORE OF IT, MORE OFTEN


THOSE COMPANIES (AND PEOPLE)

WHO FOCUS ON PREMIUM VALUE CREATE MORE OF IT, MORE OFTEN


WE’RE ALL IN THE RELATIONSHIP

BUSINESS


RELATIONSHIPS ARE STRATEGIC

Photo: yeahbouyee IFlickr)


EXPERIENCE IS STRATEGIC



From: The Experience Economy, Pine and Gilmore

Commodity Product Service Experience

Price/Value/Loyalty




Commodity Product Service Event/Environment

Experience

Price/Value/Loyalty


R

EXPE I EN EC

meaningful identity

emotional financial

functional

NEEDSOFFER

INTENT

RELATIONSHIP

BREADTHProductServiceBrandChannel/Environment (Space)Promotion

TRIGGERSSight

SoundSmellTaste

TouchConceptsName(s)Symbols

Price

VALUEMeaning

Status/IdentityEmotion/Lifestyle

PriceFunction

INTENSITY ReflexHabit

Engagement

INTERACTIONPassiveActiveInteractive

DURATIONInitiation

ImmersionConclusion

Continuation


WE NEED BETTER TOOLS TO

UNDERSTAND TOTAL VALUE


WE MUST COLLECT MORE & NEW

INFORMATION


Accomplishment Beauty Creation Community Duty Enlightenment Freedom

Harmony Justice Oneness Redemption Security Truth Validation Wonder

15 CORE MEANINGS

Definitions: makingmeaning.org


QUALITATIVE RESEARCH TECHNIQUES:

Interviews Careful Surveys

Shadowing Laddering

Games, etc.

Book: The Meaning of Things by Mihaly Csikszentmihalyi

NATHAN SHEDROFF nathan.com @nathanshedroffFREEDOM COMMUNITY

NATHAN SHEDROFF nathan.com @nathanshedroffJUSTICE ONENESS


Flavor

Bright/ Saturated

Hard, Artificial, Natural

Curvaceous/Smooth, Solid,

Sharp/Pointed

Loud, Simple/Clear,

Musical/Melodious, Mechanical

Musky, Bright, Alcohol,

Forest/Plants

Meaty, Salty

Accomplishment Triggers

SoundColor Materials Form Aroma


Flavor

Primary Hard Complex Loud Forest/Plants Sweet - Sugar

Community Triggers



Flavor

Muted/Desaturated Plastic

Porous Natural/Organic Natural,

Floral Salty

Harmony Triggers



WE NEED NEW TOOLS TO DESIGN RELATIONSHIPS (EXPERIENCES)

Blueprint+ v4.3

Customer

Media-Touchpoint

Time Indicator

Role

1Ro

le 2

Role

3Ro

le 4

Waitress

Cook

Manager

+

–

+

–

+

–

+

–

Fail Line

Emotions

Costs

Variable 1

Media-Touchpoint

Media-Touchpoint

Media-Touchpoint

Tabl

e Re

serv

atio

n O

nlin

e

00:0

0

15:0

0

00:0

0

02:3

0

03:3

0

07:0

0

08:0

0

09:0

0

15:0

0

35:0

0

35:3

0

37:0

0

38:3

0

41:0

0

50:0

0

50:3

0

01:1

5:00

01:1

7:00

Conf

irmat

ion

by S

MS

Ente

r res

taur

ant,

shor

t wai

t at

rece

ptio

n

Ord

er A

pere

tiv

Giv

en m

enu

Ape

reti

v c

omes

wit

h ex

tras

Gue

st is

sur

pris

ed/d

elig

ted

Food

is s

erve

d

Corr

ect d

ish

serv

ed

Gue

st is

sat

isfi

ed a

gain

Wro

ng s

ide

dish

.G

uest

com

plai

ns

Wai

tres

s gr

eets

gue

st a

nd

lead

s th

em to

tabl

e

Wai

tres

s ta

kes

the

food

or

der

Food

ord

er s

ent t

hrou

gh to

ki

tche

n

Mes

sage

and

dis

h se

nt b

ack

to k

itch

en

Kelln

er s

trei

cht e

inen

Tei

l de

r Rec

hnun

g

Mea

l Pre

pare

d

Chef

agi

tate

d an

d ot

her

mea

ls p

ushe

d la

te in

ord

er

to re

-do

side

-dis

h.

Com

mun

icat

ion

failu

re in

kit

chen

Corr

ect s

ide-

dish

pre

pare

d


EXPERIENCE AFFECTS “STATE OF MIND”


STATE OF MIND (SOM) IS WHAT YOU FEEL AND

THINKING AT ANY MOMENT

ResponseResponse

Response

Stimuli

State of Mind: Memory Emotions Perceptual Bias Behavioral Response Mental Models

ResponseResponse

Response

Stimuli


State of Mind:

Emotions

Behavioral Response Mental Models

Stimuli: Sights Sounds Smells Tastes Touch Concepts Symbols


State of Mind:

Emotions


(Triggers)

Core Meanings


State of Mind:

Emotions


INITIATION (EXPECTATIONS)STATE OF MIND (CONTEXT):

BACKSTAGE:

TOUCHPOINT ECOSYSTEM: PRODUCT, SERVICE, EVENT, NAME, IDENTITY/SYMBOLMEDIA: SOCIAL, ETC?

LOCATION

FEELING

TRIGGERS: VISUAL (COLOR, TYPE, LAYOUT, IMAGE, PATTERN), AUDIO, AROMA, TASTE, TOUCH, CONCEPT

MEMORY, BIAS, MENTAL MODELS

BEHAVIOR

AGENT

ACTION/RESPONSE:

ENGAGEMENT CONCLUDE/REFLECT CONTINUATION (REPEAT)TIME > > >

ACTUAL

DESIRED

EXPECTED

PLANNED

WAVELINE TEMPLATEPROJECT:TASK:

INTE

NSI

TYD

ESIR

ABLE

> >

>

< <

< U

ND

ESIR

ABLE

PERSONA/ACTOR:

Trepidation

AnticipationBoredom

Frustration

Anger

Hope

Relief

Frustration

Contempt


BACKSTAGE:


LOCATION

FEELING



BEHAVIOR

AGENT

ACTION/RESPONSE:


ACTUAL

DESIRED

EXPECTED

PLANNED


INTE

NSI

TYD

ESIR

ABLE

> >

>

< <

< U

ND

ESIR

ABLE

PERSONA/ACTOR:

Accomplishment Wonder Creation Validation Trust


BACKSTAGE:


LOCATION

FEELING



BEHAVIOR

AGENT

ACTION/RESPONSE:


ACTUAL

DESIRED

EXPECTED

PLANNED


INTE

NSI

TYD

ESIR

ABLE

> >

>

< <

< U

ND

ESIR

ABLE

PERSONA/ACTOR:

Accomplishment Wonder Creation Validation Trust

Feature Service ProductPromotion EventWebsite Feature

© SCANSION 2014Consumer Experience Waveline

Waveline

Opportunities Opportunity 1 Opportunity 2 Opportunity 3 Opportunity 4

Touchpoints

USEEXPLORATION SETUPPURCHASE

Lorem ipsum dolor sit amet, consec-tetur adipiscing elit. Duis lacinia lacinia mauris non faucibus. Cras sed mattis lectus. Nunc ac ornare risus. Nulla rutrum commodo odio, et vestibulum augue aliquet nec.






Lorem ipsum dolor sit amet, consec-tetur adipiscing elit. Duis lacinia lacin-ia mauris non faucibus. Cras sed mattis lectus. Nunc ac ornare risus. Nulla rutrum commodo odio, et vestib-ulum augue aliquet nec.



Lorem ipsum dolor sit amet, con-sectetur adipiscing elit. Duis lacinia lacinia mauris non faucibus. Cras sed mattis lectus. Nunc ac ornare risus. Nulla rutrum commodo odio, et vestibulum augue aliquet nec.


Lorem ipsum dolor sit amet, con-sectetur adipiscing elit. Duis lacinia lacinia mauris non faucibus. Cras sed mattis lectus. Nunc ac ornare risus. Nulla rutrum commodo odio, et vestibulum augue aliquet nec.Lorem ipsum dolor sit amet, con-

sectetur adipiscing elit. Duis lacinia lacinia mauris non faucibus. Cras sed mattis lectus. Nunc ac ornare risus. Nulla rutrum commodo odio, et vestibulum augue aliquet nec.













































Confusion

Anxiety

Frustration

Boredom

INT

EN

SIT

Y

T I M E

2 3 4

12

4

1

3 Beauty Wonder Creation Accomplishment

Ideal ConsumerExperience Waveline

Customer Segment 1

Customer Segment 1

Customer Segment 1

Computer crashes

All the touchpointsare important

Retail confusionaround products

Which computershave integrativefeatures

Struggling to setupWiFi

The excitement ofa new computer

Exploring new features

New products andintegration

Company Experienceafter productupgrades

Adjusting to newproduct betas

The forum takes youright to the answer

Form vs Function

Company & Tech

On software things just disappear

Just search it...

How information is presented vs howpeople really learn

Explaining the keytouchpoints duringexploration

PC LearningExperienceVideo

Getting diverseopinions

Exploring thetouchpoints

PC LearningExperiencePowerpoint


JOURNEY MAP vs WAVELINE

•�Maps touchpoints •�Maps functions •�Design 4 touchpoints

•�Design 4 relationships •�Maps experiences (“change in people”) •�Maps emotions, values & meaning •�Maps value (and, opportunities) • Can map triggers • Places opportunities in context & time


Corporate Decision Drivers

Team Decision Drivers

Customer Decision Drivers

Competitors’ Decision Drivers

Strategic Focus

STRATEGIC MEANING ALIGNMENT


Corporate Decision Drivers

Team Decision Drivers

Customer Decision Drivers

Competitors’ Decision Drivers

STRATEGIC MEANING ALIGNMENT

Community Wonder Accomplishment Beauty

Accomplishment Enlightenment

Community Wonder

Security Wonder Accomplishment Community

Accomplishment Community

Wonder


BACKSTAGE:


LOCATION

EMOTIONS



GOAL/VALUE

AGENT

ACTION/RESPONSE:


ROX


INTE

NSI

TY >

> >

PLANNED

ACTUAL

PERSONA/ACTOR:

designmba.org/open-source-curricula

FREEDOM

CCA LEADING BY DESIGNFELLOWS PROGRAM

www.cca.edu/fellowsprogram

EXPERIENCE WORKBOOK

OBSERVATIONS ANDOPPORTUNITIES IN

EXPERIENCE DESIGN

15

THE 6 DIMENSIONS OF EXPERIENCE:There are 6 dimensions of every experience, whether these are natural orman-made adn whether these are business-oriented to not. This workbookwill help you explore and analyze the experiences around you and aideyou in developing better experiences for customers.

SIGNIFICANCEMeaningStatus/IdentityEmotions/LifestylePrice/ValueFunction

DURATION (TIME)Initiation

ImmersionConclusion

Continuation

TRIGGERSSightSoundSmellTasteTouchConceptsSymbols

BREADTHProdcutService

BrandName

Channel/EnvironmentPromotion

Price

INTENSITYReflexHabitEngagement

INTERACTIONStatic

PassiveActive

Interactive

For each of the dimensions above, observe your customers/users/audiencewhen and where they experience needs and current solutions.

EXPERIENCE OBSERVATION

INTENSITYIs the experience...

REFLEX? HABIT? ENGAGEMENT?If so, there is likely no designopportunity.

If so, can this experience beturned into an engagementexperience?

This is where the vast numberof opportunities lie.

DURATION (TIME)Is the experience...

REFLEX? HABIT? ENGAGEMENT?If so, there is likely no designopportunity.

If so, can this experience beturned into an engagementexperience?

This is where the vast numberof opportunities lie.

1 14

BUSINESS MODEL:With these new elements of experience, are their threats to your gurrentbusiness model?

Are there new opportunities?

Flavor

Primary Hard Complex Loud Forest/Plants Sweet - Sugar

Community Triggers



WE NEED TO DO THE WORK TO BRIDGE OUR DIFFERENT WORLDS


BUSINESSPEOPLE ARE EXTREMELY

CONFIDENT ABOUT THINGS THAT AREN’T

TRUE


GROWTH IS EVERYTHING FREE MARKETS ARE EFFICIENT

MARKETS OPTIMIZE EVERYTHING “THE BUSINESS OF BUSINESS IS BUSINESS” “CORPORATIONS ARE PEOPLE MY FRIEND”

THE FOUNDING FATHERS (USA) WERE PRO-BUSINESSTHE GPD MEASURES PROGRESS

RICH PEOPLE CREATE JOBS

THE NUMBERS TELL THE STORYMARKETING & SALES ARE SIMILAR

BUSINESSES ARE MORE EFFICIENT THAN GOVERNMENTSFOCUS ON MINIMAL VIABLE PRODUCT

COOPERATION IS FOR WUSSESLEADERSHIP COMES FROM AUTHORITY

MYTHS OF BUSINESS


THE WORK SPEAKS FOR ITSELF DESIGN IS FOCUSED ON CUSTOMERS

DESIGNERS CREATE CULTURE BUSINESSPEOPLE ONLY CARE ABOUT THE NUMBERS

NUMBERS DON’T TELL THE STORY

YOU CAN PROTECT AN IDEA DESIGNERS CREATE AND CONTROL THE EXPERIENCE

IT’S GOTTA LOOK NICE THE BEST SOLUTION ALWAYS WINS

MYTHS OF DESIGN






WE ALSO NEED TO HELP BUILD NEW BUSINESS TOOLS


} 44The Business Model Canvas

Cost Structure

Key Partners

Key Resources

Channels

Key Activities

Value Proposition

Customer Relationships

CustomerSegments

Revenue Streams

Business Model Generation, Alexander Osterwalder businessmodelgeneration.com


} 44The Business Model Canvas

Cost Structure

Key Partners

Key Resources

Channels

Key Activities

Value Proposition

Customer Relationships

CustomerSegments

Revenue Streams

Business Model Generation, Alexander Osterwalder businessmodelgeneration.com


VALUE IS MORE THAN

FINANCIAL


EVERYONE IS IN THE RELATIONSHIP

BUSINESS


EVERYONE IS IN THE EXPERIENCE

BUSINESS


QUALITATIVE VS.

QUANTITATIVE


QUALITATIVE AND

QUANTITATIVE


WE NEED NEW TOOLS FOR RESEARCH,

DESIGN, & BUSINESS



THANK [email protected]

@nathanshedroff designmba.org

M A K E I T S O Interaction Design Lessons from Science Fiction

b y N AT H A N S H E DR OF F & C H R I S TOP H E R NOE S S E L

foreword by Bruce Sterling

Many designers enjoy the interfaces seen in science fiction films

and television shows. Freed from the rigorous constraints of designing

for real users, sci-fi production designers develop blue-sky interfaces

that are inspiring, humorous, and even instructive. By carefully studying

these “outsider” user interfaces, designers can derive lessons that make

their real-world designs more cutting edge and successful.

“Designers who love science fiction will go bananas over Shedroff and Noessel’s delightful and informative book on how interaction design in sci-fi movies informs interaction design in the real world. . . . You will find it as useful as any design textbook, but a whole lot more fun.”

ALAN COOPER“Father of Visual Basic” and author of The Inmates Are Running the Asylum

“Part futurist treatise, part design manual, and part cultural analysis, Make It So is a fascinatinginvestigation of an often-overlooked topic: how sci-fi influences the development of tomorrow’s machine interfaces.”

ANNALEE NEWITZEditor, io9 blog

“Shedroff and Noessel have created one of the most thorough and insightful studies ever made of this domain.”

MARK COLERANVisual designer of interfaces for movies (credits include The Bourne Identity, The Island, and Lara Croft: Tomb Raider)

“Every geek’s wet dream: a science fiction and interface design book rolled into one.”

MARIA GIUDICECEO and Founder, Hot Studio

www.rosenfeldmedia.com

MORE ON MAKE IT SOwww.rosenfeldmedia.com/books/science-fiction-interface/

MAK

E IT SO

by NATH

AN SH

EDR

OFF &

CHR

ISTOPH

ER N

OESSEL

Experience Design 1.1a manifesto for the design of experiences

by Nathan Shedroff


user behavior 116

100 years 22

information 42

takeaways 28

data 36

knowledge 48

subjectivity 78

consistency 96

navigation 84 Design Strategy in ActionEdited by Nathan Shedroff

A publication from the MBA in Design Strategy programCalifornia College of the Arts

2011