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The Design of Business Why Design Thinking is the Next Competitive Advantage Roger Martin, Dean Rotman School of Management University of Toronto

Roger Martin The design of business Why design thinking is the next competitive advantage

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Roger Martin, a leading proponent of design thinking in business, makes the case that we can understand innovation through a new model of how businesses advance knowledge over time, and that businesses fail to innovate when they show greater concern for producing reliable (predictable and reproducible) outcomes than valid ones that actually meet objectives. Martin argues that businesses can do a better job at innovating—and advancing knowledge—if they embrace design thinking. Using examples such as Procter & Gamble, RIM (BlackBerry) and Cirque du Soleil, he examines how companies transform themselves into successful design-thinking organizations. SPEAKER BIO Roger Martin has served as the dean of the Joseph L. Rotman School of Management at the University of Toronto since September 1998. Previously, he spent 13 years as a director of Monitor Company, a global strategy consulting firm based in Cambridge, Massachusetts, where he served as co-head of the firm for two years and founded

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Page 1: Roger Martin The design of business Why design thinking is the next competitive advantage

The Design of BusinessWhy Design Thinking isthe Next Competitive Advantage

Roger Martin, Dean Rotman School of ManagementUniversity of Toronto

Page 2: Roger Martin The design of business Why design thinking is the next competitive advantage

Mystery Heuristic Algorithm Code

01100111001

Our Path of Understanding

Mystery

Page 3: Roger Martin The design of business Why design thinking is the next competitive advantage

Mystery Heuristic Algorithm Code

01100111001

Our Path of Understanding

Mystery

Heuristic

Page 4: Roger Martin The design of business Why design thinking is the next competitive advantage

Mystery Heuristic Algorithm Code

01100111001

Our Path of Understanding

Mystery

Heuristic

Algorithm

Page 5: Roger Martin The design of business Why design thinking is the next competitive advantage

Mystery Heuristic Algorithm Code

01100111001

Our Knowledge Funnel

Mystery

Heuristic

Algorithm

Page 6: Roger Martin The design of business Why design thinking is the next competitive advantage

A Fundamental Predilection Gap

100% Reliability 100% Validity

Intuitive ThinkingAnalytical Thinking

Page 7: Roger Martin The design of business Why design thinking is the next competitive advantage

Analytical Thinking

Purpose Proof through induction and deduction

Approach Exploitation of current knowledge Focus on data from the past Administration of what is Suppression of judgment

Goal Reliability: the production of consistent replicable outcomes

Page 8: Roger Martin The design of business Why design thinking is the next competitive advantage

Intuitive Thinking

Purpose Knowing without reasoning

Approach Exploration of new knowledge Focus on what might be Invention of the future Suppression of analysis

Goal Validity: the production of outcomes that meet objectives

Page 9: Roger Martin The design of business Why design thinking is the next competitive advantage

Bridging the Fundamental Predilection Gap

100% Reliability 100% Validity

Design Thinking

50/50 Mix

Page 10: Roger Martin The design of business Why design thinking is the next competitive advantage

A Starting Point for Integrative ThinkingDesign Thinking

Purpose Balance through generative reasoning

Approach Respect for exploitation & exploration Integration of future with past Design of what should be Integration of analysis & judgment

Goal Requisite reliability & validity to maintain competitive advantage

Page 11: Roger Martin The design of business Why design thinking is the next competitive advantage

Designing in Hostile Territory

five productive steps5