Design Thinking 2 What Wows and What Works?

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1 Design Thinking 2 What Wows and What Works? Mattias Arvola Dept. of Computer and Information Science 1

2 Visualization Journey mapping Value chain analysis Mind mapping Brainstorming Concept development Assumption testing Rapid prototyping Customer co-creation Learning launch What is? What if? What wows? What works? DESIGN BRIEF DESIGN CRITERIA NAPKIN PITCH LEARNING GUIDE 2

3 Concept Development 200 ideas in brainstorming Develop 12 concepts Test 3 with customers Deploy 1 Don t say no too early Focus on value for customers and business case 3

4 Just do it Gather your Legos: people, design criteria and brainstorming results. Spread your Legos: Use the room Eliminate redundancies Group similar ideas Missing things and new ideas Recurring themes Set priorities using the criteria Identify must have ideas and themes Choose 5-12 themes that serves as anchors for distinct concepts Form initial concepts: Combine elements for customer value and viable business model Set up a Chili Table 4

5 Jeremy Alexis Chili Table Variables: Think of all the things you can put into chili meat, beans, veggies, spices Values: Think of all possible items in each category of things different kinds of meat or spices Combinations: Create different combinations of variables and values to make different kinds of vegetarian chili, meat lover s chili, Hawaiian chili 5

6 Evaluate Against your Design Criteria Choose multiple compelling concepts and for each of them consider: What type of product/service are you considering? How would it work? What key needs does it meet? What are the costs and risks? How would it enrich the relation between the company and the customer? 6

7 Napkin Pitch or NABC Concept Name Need Why customer wants it? What unmet needs does it serve? Approach What asset or capability does it leverage? How does it create value? How do we create a sustainable advantage? Benefit How will the customer benefit? How will our company benefit? What other parties will benefit? Competition Who else serves this need? How will they respond to our entry? 7

8 8 Visualize

9 What Wows? Testing the future in the present 9

10 Assumption Testing A business concept is a hypothesis that builds on assumptions about customers partners competitors What is the simplest way to test an assumption you are unsure of? Can we test it without implementing it for real? What are the make-or-break elements of the concepts? 10

11 Assumption Testing: Vulnerabilities Worthwhile problem Novel and compelling solution that isn t easy to copy Adoption rates Market entry timing Availability of key partners Price Cost 11

12 Assumption Testing: Generic Business Tests The value test: Customers will buy at a price that works The execution test: You can create and deliver it at a cost that works The scale test: You can build a volume that makes it worthwhile The defensibility test: Competitors can t easily copy you Value and executions tests are more important early than scaling and defensibility 12

13 Assumption Testing: Specific Business Tests Relates to your organisation/firm and its particular situation Strategic goals that the concept contributes to Assumptions on how and why this concept contributes to the strategic goals Strategic organizational goals in the design brief and in your impact map Imperatives to meet in the design criteria, based on value chain analysis and ethnography 13

14 Assumption Testing: Articulate assumptions Customers: Why this concept will create superior value to them? Willingness to pay? How many are they (market size)? Your organization: How to create and deliver promised value and what capabilities will leverage? Missing capabilities? Whom will you partner with? Competitors: Which competitors will be affected? How will they react/ interfere? Choose a handful critical assumptions 14

15 Identify the data you need to test your assumptions What you know What you don t know and can t What you don t know but could 15

16 Make thought experiments and check assumptions in impact maps Look at the data you don t know but could What is the easiest way of knowing without necessarily going to the customers or market? Check with people inhouse? Online research? Revise the impact map with stakeholders Add bulletpoints to the nodes Rephrase map nodes Attach additional nodes 16

17 Rapid Prototyping Bring concepts to life with details, form and nuance Faking a new business fast Make ideas tangible to share and discuss with stakeholders and in the team Lots of 2D Paper prototyping Storyboarding User scenarios Experience journeys Business concept illustrations 3D Built out design language Working model with more features and details 17

18 What is the cheapest way to test your assumptions? Early prototype: Concept sketch (2D) Time: 5 minutes Cost $1 Functional prototype Retrofitted cooler (3D) Magnetic door strike attached Keypad attatched Time: 3 days Materials cost: $600 Market test prototype Original design by high-profile design consultancy Fully functional Required original tooling Time to create: 3 months Materials cost <$10,000 (due to tooling cost) 18

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22 By Jurgen Leckie 22

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24 Video prototype The Economizer 24

25 Learning Guide to Experiments in the Market Strategic Intent Goal of project for customers and company Remaining Key Assumptions to Be Tested To-do-list In-Market Test Plan Assumptions to test in market, and their success metrics Financial Capital to Be Expended Budget and people needed to test assumptions in the market place through cocreation and learning launch Revise as you learn and fail fast to succeed sooner 25

26 What works? Invention doing something in a novel way Innovation an invention that create economic value Envision multiple concepts, choose one to market test Is your offering really desirable, viable and feasible? Stay open to insights that could take you in unexpected directions 26

27 Customer Co-Creation Getting the voice of the customer Invite a few potential customers to collaborate with you by playing with rough prototypes Put them infront of some prototypes Give them tasks Observe their reactions and ask for their thought Analyze the results Iterate 27

28 Just do it Enroll customers who care about you, but not as much as they care about themselves Diversity = security Create a no-selling zone. The customer should do 80% of the talking Engage one customer at the time Test 2-3 options, at least one you think is too extreme Leave it rough Let them change stuff, fill in the blanks, sort out things Leave time for discussion, but let the customer answer their own questions Remember: what assumptions are you testing? 28

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30 Functional computer prototype v=_avjmmviwho 30

31 Impact Mapping in Co-Creation Impact map with customers, developers and users to jointly define a good solution 31

32 Learning Launch Take an improved prototype to the market for an extended experiment to test final assumptions before full commercial development. Asking what people think is a weak test Looking at actual behavior over extended time is the real test What is it worth to them? 32

33 4D = 3D that persists over time Build a working prototype Set tight boundaries: How long is long enough? Confidentiality may be an issue Focus on key assumptions that you want to test and set specific metrics Generate the data you need Get disconfirming data that can disprove your hypotheses Make sure the cost of the learning launch match its benefits Use fast feedback cycles Make it feel real Make back-up plans Test your on-ramp strategy 33

34 Assignment 2 Deliverables Napkin Pitch Learning Guide Methods: Start from your earlier brainstorm Visualization Concept Development Assumption Testing Rapid Prototyping Customer Co-Creation Gather initial thoughts on a Learning Launch Integrate Impact Mapping in the testing of assumptions and customer co-creation. 34

35 Muddy Cards online The following things are good about the course: The following things are important for the examiner to think about or handle in the second half of the course: 35

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