Design and Systematic New Value Creation, to KU School of Business, Jayhawk Consulting by Michael Eckersley, PhD

1. Design and Systematic New Value Creation
Michael Eckersley, PhD
September 23 June, 2011
24, 2012
Jayhawk Consulting Michael Eckersley, PhD

2. about us

3. OUR PRACTICES TOUCH RESULT
human research & products new value
discovery
concept consumer
services
development experience
design strategy systems perception
visualization / brands human behavior
simulation
environments system behavior

6. the
context
Organizations are struggling to be
competitive in a dynamic global
economy, to achieve sustainable
growth, and find the future first.
All at the same time.
The challenges are significant...

7. the adaptive corporation
(1985)
The corporate environment has grown increasingly
unstable, accelerative, and revolutionary... The
adaptive corporation, therefore, needs a new kind of
leadership. It needs “managers of adaptation”
equipped with a whole set of new, nonlinear skills.
–Alvin Toffler, The Adaptive Corporation

8. sense and respond
“Management is shifting from a stance of
predicting and controlling change to one of
building an organization to sense change and to
respond appropriately – adaptive management”.
–Christopher Meyer
Monitor

9. the gap between what we are
and what we need to be is large
“In the archives of any decent -sized organization, an
unfiltered record will show institutional life in all it’s
boredom and inefficiency. Most initiatives fail. Internal
competition trumps external goals. People are petty,
whiny, and unmanageable.”
–Nicholas Lemann

10. we have built a system of
organizational life that
repels human creativity,
that inhibits innovation

11. Schedules
Goals
Budgets
Margins
Projections
Costs
Teams
Clients
Analysts
too often lost is a sense of
Vendors
PR
cohesion and integrated effort to
Sales
create new value, not simply get
Production
better at delivering existing value
Service workers
Managers
Strategists
Marketers
Designers
Engineers
Administrators
Regulators
Auditors

12. Innovation: a social phenomenon
“Innovation is a social or economic term, not
a technological one, defined in terms of
demand rather than supply. changing value
and satisfaction obtained from resources by
the consumer.”
–Peter Drucker

13. the growth imperative
“90% of all publicly traded companies have
proved themselves unable to sustain for more
than a few years a growth trajectory that
creates above-average shareholder returns.”
–Clayton Christensen & Michael Raynor
The Innovator’s Solution
© HumanCentered 2007, All Rights Reserved

14. how?
the approach:
create the conditions that
foster organic growth, social
innovation, integrative
thinking, creative behavior

15. All we have is us
to produce the futures
we desire
© HumanCentered 2007, All Rights Reserved

16. management as an art:
a systematic practice,
intellectual and practical
–Richard Buchanan, Case Western
© HumanCentered 2007, All Rights Reserved

17. so what’s design?
“Everyone designs who devises
courses of action aimed at
changing existing situations into
preferred ones.”
–Herbert Simon

18. “Design is a complex problem
solving process whereby artifacts
are structured to attain goals”
–Herbert Simon
so what’s design?
products conceived functionality
services programmed reliability
brands organized beauty
communications developed elegance
systems built profitability
experiences crafted efficiency
etc. engineered viability
fashioned etc.
etc.

19. so what is design?
In most people's vocabularies, design means
veneer. It's interior decorating. It's the fabric of
the curtains of the sofa. But to me, nothing could
be further from the meaning of design. Design is
the fundamental soul of a human-made creation
that ends up expressing itself in successive outer
layers of the product or service.
– Steve Jobs
© HumanCentered 2007, All Rights Reserved

20. so what is design?
"Design is only secondarily about pretty
lumpy objects, and primarily about a whole
approach to doing business, serving
customers, and providing value."
"Design... has become central to enterprise
strategy."
–Tom Peters

21. design helps here
Q2-2011 Q2-2012 Q3-2013 Q1-2014 Q1-2015
OUR WORK
offering offering offering offering
offering offering
Now Next Soon Later Who
knows?
1. understanding 2. identifying patterns 3. creating concepts 4. prototyping the
users and the context and reframing the that build experiences innovations
of the problem problem for users and
–Patrick Whitney, ID, IIT
economic value for the
company

22. What is design thinking?
1. Conditioned inventiveness
2. Human-centered focus
3. Environment-centered concern
4. Ability to visualize
5. Tempered optimism
6. Bias for adaptivity
7. Predisposition toward multi-functionality
8. Systemic vision
9. View of the generalist
10.Ability to use language as a tool
11.Affinity for teamwork
12.Facility for avoiding the necessity of choice
13.Self-governing practicality
14.Ability to work systematically with qualitative
information –Charles Owen, IIT
© HumanCentered 2007, All Rights Reserved

23. www.vimeo.com/5750600
© HumanCentered 2004, All Rights Reserved

24. © HumanCentered 2004, All Rights Reserved

25. We know how to engineer almost anything
The harder problem today is knowing what
to innovate
our task: bring decisions about user experience
into the early stages of development. Align
strategic benefit with the consumer value
© HumanCentered 2004, All Rights Reserved

26. the conventional
business approach create a develop sell them to
business offerings customers
(predict & provide)
>
build the bridge
>
deeply
a human-centered develop build a
understand
design approach concepts & business
users/
offerings around them
(learn & respond) contexts
adapted from Vijay Kumar, IIT

27. Sources of design innovation
+4 top-down
High Search:
global
innovations
+3 environmental
& market
factors macro economic
+2
market/industry
+1
organizational
0 “street-level” issues & operations
physical/biological
-1
socio-cultural
-2
Deep Search:
psychological
human
-3 factors
spiritual
bottom-up
-4 innovations
Learning Learning
Cycle 0 (time) Cycle 1

28. Jobs That People Hire Online Banks To Do
Retail and Business Banking 2010
A
cted
eavil y reda Product development overview
tio n is h iality
In forma f con fident
for s ake o
28

29. Design and Systematic New Value Creation
Michael Eckersley, PhD
September 24, 2012
Jayhawk Consulting