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IBM Design :: ©2015 IBM Corporation
Greger Ottosson, PhD
Program Director
IBM Design
Lean Startup at a
Large Company
IBM Design :: ©2015 IBM Corporation
How Design Thinking is Transforming
Product Development at IBM
Lean Startup at a
Large Company
IBM office locations150
OVER
380K
OVER
IBM employees worldwide
IBM Design :: ©2015 IBM Corporation
IBM’s software portfolio
consists of over 3,000
enterprise products
6
Good Design is
Good Business.
-
Thomas J. Watson, Jr.
CEO, IBM
“
A Rich Legacy of Exquisite Design
Eliot Noyes
Paul RandCharles & Ray Eames
Thomas Watson Jr.
IBM Design :: ©2015 IBM Corporation 12
IBM Design :: ©2015 IBM Corporation 13
IBM Design :: ©2015 IBM Corporation 14
IBM Design :: ©2015 IBM Corporation 18
IBM Design :: ©2015 IBM Corporation 19
IBM Design :: ©2015 IBM Corporation 20
IBM Design :: ©2015 IBM Corporation 21
There’s one key to
our future growth:
the client experience.
Ginni Rometty
CEO, IBM
“
Design Transformation
The last best experience that
anyone has anywhere, becomes
the minimum expectation for
the experience they want
everywhere.
Bridget van Kralingen
Senior Vice President
IBM Global Business Services
IBM Design :: ©2015 IBM Corporation
25IBM Design :: ©2015 IBM Corporation
We need to focus
maniacally on
designing an awesome
client experience
IBM Design :: ©2015 IBM Corporation
IBM Design :: ©2015 IBM Corporation
“Our mission is to create a
sustainable culture of
design at IBM.”
— Phil Gilbert

General Manager, IBM Design
people + practices + places = outcomes
people
Design Engineering
We’re on a mission to improve the ratio of
designers to engineers at IBM.
IBM Design has brought on
over 500 designers
People
people + practices + places = outcomes
People
UX Design
Visual Design
Design Research
Front End Development
Bringing skills and expertise
together
People
people + practices + places = outcomes
IBM
Designcamp
people + practices + places = outcomes
New Hires 12 weeks
Product Teams 1 week
Executives/Leaders 2 days
Clients Custom
People
Work hard, have fun!
Culture
people + practices + places = outcomes
people + practices + places = outcomes
IBM Studios
located around
the world
Places
people + practices + places = outcomes
Building spaces
that foster
creativity and
collaboration
Studio
people + practices + places = outcomes
people + practices + places = outcomes
Studio
This is a user experience
IBM Design :: ©2015 IBM Corporation 43
IBM Studios & Garages
Learn More
people + practices + places = outcomes
IBM Design :: ©2015 IBM Corporation
User-Centered

Product

Development
Human-
Design
Thinking
Codified by IDEO
EMPATHY
PROTOTYPING
COLLABORATION
people + practices + places = outcomes
Grounded in: Prototype
Evaluate
Understand
Explore
Added tools and
metrics to apply
design thinking
to enterprise
IBM
Design
Thinking
people + practices + places = outcomes
Prototype
Evaluate
Understand
Explore
We use Hills to focus a
project on big (but
attainable) problems
and outcomes for
users, not just a list of
feature requests
Prototype
Evaluate
Understand
Explore
IBM Design :: ©2015 IBM Corporation
IBM Design :: ©2015 IBM Corporation 49
—Yogi Berra
If you don’t know 

where you’re going, 

you might not get there.”
“
IBM Design :: ©2015 IBM Corporation 50
Hills are kinda like…
The mission statements 

for our next release.
IBM Design :: ©2015 IBM Corporation 51
Hills are kinda like…
What will be true for our users 

once we finish this set of work.
Hills
• About a user or specific
classes of users
• A user-centered solution
that solves a clearly
defined problem
• Describe near-term
product development work
that can be taken within
this release or over a finite,
identified set of releases
IBM Design :: ©2015 IBM Corporation
1. Discover, Try, and Buy
2. Getting Started
3. Productive Use
4. Manage and Upgrade
5. Leverage and Extend (API)
6. Support
IBM Design :: ©2015 IBM Corporation
Who. Specific user or class of users
What. Specific user enablement
Wow. Specific & differentiating value to the user
IBM Design :: ©2015 IBM Corporation 59
Commander’s Intent
IBM Design :: ©2015 IBM Corporation 60
—General George S. Patton
Never tell people how to

do things. Tell them what 

to accomplish and they 

will surprise you with 

their ingenuity.”
“
We rely on Sponsor
Users to help inform
designed experiences
for real target users,
rather than imagined
needs
Prototype
Evaluate
Understand
Explore
IBM Design :: ©2015 IBM Corporation
We use Playbacks to
align stakeholders and
clients around the user
value to be delivered,
rather than project line
items
Prototype
Evaluate
Understand
Explore
IBM Design :: ©2015 IBM Corporation
IBM Design :: ©2015 IBM Corporation
Diverge Remix Converge
IBM Design :: ©2015 IBM Corporation
Exploration Playbacks Delivery Playbacks
Hills

Playback
Playback

Zero
Release 

Kickoff
Delivery
Vision + Intent Exploration
IBM
Design
Language
people + practices + places = outcomes
Living set of
guidelines for how
we design software
ibm.com/design/language
people + practices + places = outcomes
67IBM Design :: ©2015 IBM Corporation
IBM VerseIBM Bluemix
Our products are developed using these IBM Practices
IBM Design :: ©2015 IBM Corporation
DashDB Watson Analytics
Journey DesignerJourney Analytics xForce Exchange API Management
…
PureApp
people + practices + places = outcomes
Before
PureApp
people + practices + places = outcomes
After
Watson
Discovery
Advisor
people + practices + places = outcomes
Another
IBM
Product
people + practices + places = outcomes
After!
Watson
Discovery
Advisor
people + practices + places = outcomes
After!
IBM Design :: ©2015 IBM Corporation 72
“As industry giants such as IBM
realize that software is a
fundamental part of their
businesses, they are also
recognizing the extraordinary
levels of complexity they must
manage. Design thinking is an
essential tool for simplifying and
humanizing. It can’t be extra; it
needs to be a core
competence.”
Jon Kolko,
HBR, September 2015
“IBM Design makes a distinction
between the craft of design and
the practice of design thinking.
The former involves trained and
skilled hands-on practitioners of
design, while the latter can
include anyone who applies the
principles of design thinking
toward problem discovery,
problem solving, and
collaborative teamwork.”
Allegra Burnette,
Forrester, September 2015
Product Management
Title Text
User
Experience
Technology
Business
IBM Design :: ©2015 IBM Corporation 75
Design Strategy
DevOps
Lean Startup
Product
Management
A Cake Experience Roadmap
Birthday CakeCupcake Wedding cake
A tasty treat at a low price
that I can take and eat on
the go.
An affordable treat I can
share with a group for
informal celebrations.
A custom-made confection I share
with a large group at once-in-a-
lifetime events.
ideaslearningstage
moist cake
creamy icing
mix-and-match packs
cool to-go boxes/bags
different shapes
filling!
pictures and decorations
“party-in-a-box”
custom flavors
unusual structures, cantilevers
“white glove experience”
ovens / equipment
baking skills
retail infrastructure
low-cost ingredient sourcing
baking & store-front staff
“other scaling up practices”
expert cake making
delivery truck(s) and drivers
high-end packaging
Business Model Canvas
The Business Model Canvas is a lightweight map for sketching out the
most important aspects of your business model: users, products,
markets, competition…
IBM Design :: ©2015 IBM Corporation 78
BETTING THE FARM
SMALL POTATOES
UNCERTAIN
CERTAIN
Assumption
Test
Strategy Metric
IBM Design :: ©2015 IBM Corporation 79
IBM Design :: ©2015 IBM Corporation
Getting great offerings to market
Business Model
Canvas
Prioritization Grid
Product
Management
Understand Focus Plan
Experience RoadmapCompetitive Analysis Target Users Experiments
As-Is Experience HillsIdeation & Storyboarding To-Be Experience
Built on
IBM
Design
Thinking
ThinksSays
Observed Inferred
FeelsDoes
Empathy Map
IBM Design :: ©2015 IBM Corporation
Remote Collaboration
86
87
RTC
Release&Blueprint&
Agile & (Continuous) Delivery
IBM Design :: ©2015 IBM Corporation 89
Values
Trust
Empathy
Respect
Openness
Courage
A way of
working
together
IBM Design :: ©2015 IBM Corporation 90
Principles
Clarity of
outcome
Iteration and
learning
Self-directed
whole teams
IBM Design :: ©2015 IBM Corporation 91
Principles
Clarity of
outcome
Iteration and
learning
Self-directed
whole teams
Begin with clarity about
the outcome, and let it
guide every step along
the way.
Listen, iterate, learn and
course correct rather than
wait until it’s perfect. 

Build teams with the right
skills and encourage self-
direction to unleash
innovation.
IBM Design :: ©2015 IBM Corporation 92
—General George S. Patton
Never tell people how to

do things. Tell them what 

to accomplish and they 

will surprise you with 

their ingenuity.”
“
IBM Design :: ©2015 IBM Corporation
Exploration Playbacks Delivery Playbacks
Hills

Playback
Playback

Zero
Release 

Kickoff
Delivery
Vision + Intent Exploration
IBM Design :: ©2015 IBM Corporation
Hills

Playback
Release 

Kickoff
Delivery
Intent
Exploration
Research & Vision
Continuous Delivery
Continuous Everything
• Continuous Delivery
• Continuous Marketing
• Continuous Research
• Continuous Planning
• Continuous Design
• Continuous Learning
Continuous Everything
Questions?

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Lean Startup at a Large Company: How Design Thinking is Transforming Product Development at IBM (Greger Ottosson Product Stream)

  • 1. IBM Design :: ©2015 IBM Corporation Greger Ottosson, PhD Program Director IBM Design Lean Startup at a Large Company
  • 2. IBM Design :: ©2015 IBM Corporation How Design Thinking is Transforming Product Development at IBM Lean Startup at a Large Company
  • 3.
  • 5.
  • 6. IBM Design :: ©2015 IBM Corporation IBM’s software portfolio consists of over 3,000 enterprise products 6
  • 7.
  • 8.
  • 9. Good Design is Good Business. - Thomas J. Watson, Jr. CEO, IBM “
  • 10.
  • 11. A Rich Legacy of Exquisite Design Eliot Noyes Paul RandCharles & Ray Eames Thomas Watson Jr.
  • 12. IBM Design :: ©2015 IBM Corporation 12
  • 13. IBM Design :: ©2015 IBM Corporation 13
  • 14. IBM Design :: ©2015 IBM Corporation 14
  • 15.
  • 16.
  • 17.
  • 18. IBM Design :: ©2015 IBM Corporation 18
  • 19. IBM Design :: ©2015 IBM Corporation 19
  • 20. IBM Design :: ©2015 IBM Corporation 20
  • 21. IBM Design :: ©2015 IBM Corporation 21
  • 22. There’s one key to our future growth: the client experience. Ginni Rometty CEO, IBM “
  • 24. The last best experience that anyone has anywhere, becomes the minimum expectation for the experience they want everywhere. Bridget van Kralingen Senior Vice President IBM Global Business Services IBM Design :: ©2015 IBM Corporation
  • 25. 25IBM Design :: ©2015 IBM Corporation We need to focus maniacally on designing an awesome client experience IBM Design :: ©2015 IBM Corporation
  • 26. IBM Design :: ©2015 IBM Corporation “Our mission is to create a sustainable culture of design at IBM.” — Phil Gilbert
 General Manager, IBM Design
  • 27. people + practices + places = outcomes
  • 29. Design Engineering We’re on a mission to improve the ratio of designers to engineers at IBM.
  • 30. IBM Design has brought on over 500 designers People people + practices + places = outcomes
  • 31. People UX Design Visual Design Design Research Front End Development Bringing skills and expertise together People people + practices + places = outcomes
  • 32. IBM Designcamp people + practices + places = outcomes New Hires 12 weeks Product Teams 1 week Executives/Leaders 2 days Clients Custom
  • 33. People Work hard, have fun! Culture people + practices + places = outcomes
  • 34. people + practices + places = outcomes
  • 35. IBM Studios located around the world Places people + practices + places = outcomes
  • 36. Building spaces that foster creativity and collaboration Studio people + practices + places = outcomes
  • 37. people + practices + places = outcomes
  • 38.
  • 39.
  • 41.
  • 42. This is a user experience
  • 43. IBM Design :: ©2015 IBM Corporation 43 IBM Studios & Garages Learn More
  • 44. people + practices + places = outcomes
  • 45. IBM Design :: ©2015 IBM Corporation User-Centered
 Product
 Development Human-
  • 46. Design Thinking Codified by IDEO EMPATHY PROTOTYPING COLLABORATION people + practices + places = outcomes Grounded in: Prototype Evaluate Understand Explore
  • 47. Added tools and metrics to apply design thinking to enterprise IBM Design Thinking people + practices + places = outcomes Prototype Evaluate Understand Explore
  • 48. We use Hills to focus a project on big (but attainable) problems and outcomes for users, not just a list of feature requests Prototype Evaluate Understand Explore IBM Design :: ©2015 IBM Corporation
  • 49. IBM Design :: ©2015 IBM Corporation 49 —Yogi Berra If you don’t know 
 where you’re going, 
 you might not get there.” “
  • 50. IBM Design :: ©2015 IBM Corporation 50 Hills are kinda like… The mission statements 
 for our next release.
  • 51. IBM Design :: ©2015 IBM Corporation 51 Hills are kinda like… What will be true for our users 
 once we finish this set of work.
  • 52. Hills • About a user or specific classes of users • A user-centered solution that solves a clearly defined problem • Describe near-term product development work that can be taken within this release or over a finite, identified set of releases
  • 53. IBM Design :: ©2015 IBM Corporation 1. Discover, Try, and Buy 2. Getting Started 3. Productive Use 4. Manage and Upgrade 5. Leverage and Extend (API) 6. Support
  • 54. IBM Design :: ©2015 IBM Corporation Who. Specific user or class of users What. Specific user enablement Wow. Specific & differentiating value to the user
  • 55.
  • 56.
  • 57.
  • 58.
  • 59. IBM Design :: ©2015 IBM Corporation 59 Commander’s Intent
  • 60. IBM Design :: ©2015 IBM Corporation 60 —General George S. Patton Never tell people how to
 do things. Tell them what 
 to accomplish and they 
 will surprise you with 
 their ingenuity.” “
  • 61. We rely on Sponsor Users to help inform designed experiences for real target users, rather than imagined needs Prototype Evaluate Understand Explore IBM Design :: ©2015 IBM Corporation
  • 62. We use Playbacks to align stakeholders and clients around the user value to be delivered, rather than project line items Prototype Evaluate Understand Explore IBM Design :: ©2015 IBM Corporation
  • 63. IBM Design :: ©2015 IBM Corporation Diverge Remix Converge
  • 64. IBM Design :: ©2015 IBM Corporation Exploration Playbacks Delivery Playbacks Hills
 Playback Playback
 Zero Release 
 Kickoff Delivery Vision + Intent Exploration
  • 65. IBM Design Language people + practices + places = outcomes Living set of guidelines for how we design software ibm.com/design/language
  • 66. people + practices + places = outcomes
  • 67. 67IBM Design :: ©2015 IBM Corporation IBM VerseIBM Bluemix Our products are developed using these IBM Practices IBM Design :: ©2015 IBM Corporation DashDB Watson Analytics Journey DesignerJourney Analytics xForce Exchange API Management …
  • 68. PureApp people + practices + places = outcomes Before
  • 69. PureApp people + practices + places = outcomes After
  • 71. Another IBM Product people + practices + places = outcomes After! Watson Discovery Advisor people + practices + places = outcomes After!
  • 72. IBM Design :: ©2015 IBM Corporation 72 “As industry giants such as IBM realize that software is a fundamental part of their businesses, they are also recognizing the extraordinary levels of complexity they must manage. Design thinking is an essential tool for simplifying and humanizing. It can’t be extra; it needs to be a core competence.” Jon Kolko, HBR, September 2015 “IBM Design makes a distinction between the craft of design and the practice of design thinking. The former involves trained and skilled hands-on practitioners of design, while the latter can include anyone who applies the principles of design thinking toward problem discovery, problem solving, and collaborative teamwork.” Allegra Burnette, Forrester, September 2015
  • 75. IBM Design :: ©2015 IBM Corporation 75 Design Strategy DevOps Lean Startup Product Management
  • 76. A Cake Experience Roadmap Birthday CakeCupcake Wedding cake A tasty treat at a low price that I can take and eat on the go. An affordable treat I can share with a group for informal celebrations. A custom-made confection I share with a large group at once-in-a- lifetime events. ideaslearningstage moist cake creamy icing mix-and-match packs cool to-go boxes/bags different shapes filling! pictures and decorations “party-in-a-box” custom flavors unusual structures, cantilevers “white glove experience” ovens / equipment baking skills retail infrastructure low-cost ingredient sourcing baking & store-front staff “other scaling up practices” expert cake making delivery truck(s) and drivers high-end packaging
  • 77. Business Model Canvas The Business Model Canvas is a lightweight map for sketching out the most important aspects of your business model: users, products, markets, competition…
  • 78. IBM Design :: ©2015 IBM Corporation 78 BETTING THE FARM SMALL POTATOES UNCERTAIN CERTAIN Assumption Test Strategy Metric
  • 79. IBM Design :: ©2015 IBM Corporation 79
  • 80. IBM Design :: ©2015 IBM Corporation Getting great offerings to market Business Model Canvas Prioritization Grid Product Management Understand Focus Plan Experience RoadmapCompetitive Analysis Target Users Experiments As-Is Experience HillsIdeation & Storyboarding To-Be Experience Built on IBM Design Thinking ThinksSays Observed Inferred FeelsDoes Empathy Map
  • 81.
  • 82.
  • 83.
  • 84.
  • 85.
  • 86. IBM Design :: ©2015 IBM Corporation Remote Collaboration 86
  • 89. IBM Design :: ©2015 IBM Corporation 89 Values Trust Empathy Respect Openness Courage A way of working together
  • 90. IBM Design :: ©2015 IBM Corporation 90 Principles Clarity of outcome Iteration and learning Self-directed whole teams
  • 91. IBM Design :: ©2015 IBM Corporation 91 Principles Clarity of outcome Iteration and learning Self-directed whole teams Begin with clarity about the outcome, and let it guide every step along the way. Listen, iterate, learn and course correct rather than wait until it’s perfect. 
 Build teams with the right skills and encourage self- direction to unleash innovation.
  • 92. IBM Design :: ©2015 IBM Corporation 92 —General George S. Patton Never tell people how to
 do things. Tell them what 
 to accomplish and they 
 will surprise you with 
 their ingenuity.” “
  • 93.
  • 94. IBM Design :: ©2015 IBM Corporation Exploration Playbacks Delivery Playbacks Hills
 Playback Playback
 Zero Release 
 Kickoff Delivery Vision + Intent Exploration
  • 95. IBM Design :: ©2015 IBM Corporation Hills
 Playback Release 
 Kickoff Delivery Intent Exploration Research & Vision Continuous Delivery
  • 96. Continuous Everything • Continuous Delivery • Continuous Marketing • Continuous Research • Continuous Planning • Continuous Design • Continuous Learning Continuous Everything