the design services team How SAP is using design thinking to change its DNA Matthew Holloway Vice President, Design Services Team Office of the CEO 13 June 2006 SAP ©SAPCONFIDENTIAL AG 2005, , DST ©SAP AG 2005 SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 “companies are accelerating efforts to change their cultures, foster innovation, and serve customers more effectively. Innovation, or "design thinking," is, we believe, something truly important and enduring” SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 The ultimate defense against complexity David Gelernter Professor of Computer Science, Yale Simplicity is the ultimate sophistication. Leonardo da Vinci Design is a way of changing life and influencing the future Sir Ernest Hall Pianist, Entrepreneur, and Philanthropist SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Design Services Team Corporate Strategy Management Chairman of the Supervisory Board HASSO Corporate Consulting Team Office of the CEO Research & Breakthr. Innovation PETER HENNING Product Production Global Svc & Support SHAI CLAUS GERHARD Finance & Administration Human Resources & Processes CSO LÉO Biz. Process Renovation Mgmt Top Talent Management WERNER CLAUS Global Communications Global IP Global Internal Audit SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Accelerate adoption of Design Thinking as the process for innovation and development of internal and external SAP products and services in all areas of the SAP Value Chain. SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Design Services Team Traditional Design Teams DST Generative Sustaining Agent for Change Functional Design SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 design SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 why design thinking? SAP ©SAPCONFIDENTIAL AG 2005, , DST ©SAP AG 2005 so what? SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Design Thinking A Focus on Customers/Users. Broad, Multi-Disciplinary Influences. Ideation with Prototyping. Finding Alternatives. Wicked Problems. Emotion. No more “so what?” SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Must do: Best Practices and Continuous Innovation Left Brain Says: To Win: Differentiation and Breakthrough Innovation Right Brain Says: “These crazy guys will never deliver a product” “If we don’t change now it will be too late” “Give me the budget and I will deliver whatever you want” “We have to stop living in the past regardless of the success we had” “We have to concentrate on what we are good at” “New things are possible, we only have to have the will to want them” “The new ideas are interesting but we don’t have the time or necessity” SAP CONFIDENTIAL ©SAP AG 2005, , DST “There are better ways to do it” ©SAP AG 2005 Innovation = Invention x Execution Validity Reliability from “Innovation by Design” by Gerard H. Gaynor SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Validity vs. Reliability • Produces the right answer for the current context • Produces consistent and predictable results over and over • One must consider a wide array of relevant variables • Requires a reduced number of variables considered • Substantiation is based on future events • Uses quantitative, bias-free measurement • Uses inductive, deductive logic and abductive logic • Uses inductive & deductive logic From “Validity vs. Reliability, Implications for Management” by Roger Martin SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 •Does the solution show empathy for end-users? •Is this the simplest solution that gets the job done? •Is it elegant? •Is it useful? desirability viability human needs business needs •Can we afford it? •Does it make me more profitable? •Do we have the skills? •What is my ROI? feasibility technical needs •How quickly can I configure the solution to suit my needs? •Is the solution easy to maintain? •Is it consistent with my current system landscape? •Can the solution be easily supported? SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Design Results What Scope Project Understand & define objectives and outcomes Project Plan Resources Interview & Observe Observe End Users in their work place Identify Needs, Synthesis Motivations & Ideas for Solutions Results of the Research, Artifacts, Pictures Needs & Motivations User profiles Use cases SAP CONFIDENTIAL ©SAP AG 2005, , DST Develop iterative Prototypes and test with Users Assess & Refine Rough Prototypes Feedback from users & stakeholders Deliver a Prototype prototype to Solution Development Work with Implementto Development build the final design Low-fidelity Prototypes Feedback from users & stakeholders High-Fidelity prototypes and/or design specifications ©SAP AG 2005 Interviews Market Step 1: Explore the problem space through fact finding and then assemble a 360º view. Objectives SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Desirability Market Interviews Step 2: Reduce the solution space through decisions that balance desirability, viability, and feasibility. Objectives SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 The Rules: 1. One Conversation 2. Stay Focused 3. Encourage Wild Ideas 4. Build on the Ideas of Others 5. Defer Judgment SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Desirability Interviews Market Step 3: Create relevant Prototypes prototypes quickly and iteratively. Objectives SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Sketches Mock-ups Wire Frames HTML Flash Functional Code PROTOTYPES: • Must evoke an emotional response • Must be technically relevant • Fail early, fail cheaply Effort High Effort • Low Communicate the vision Low Fidelity High Fidelity • Short Become a model for realization Long Cycle Cycle Generic Feedback SAP CONFIDENTIAL ©SAP AG 2005, , DST Specific Feedback ©SAP AG 2005 Multiple iterations continue the dialog between the design team and the end-users The prototype must communicate design intent to both internal and external constituencies Prototypes are effective for communicating intent & feedback with everyone. Design Rapid End User Feedback Packaging the design for sharing Prototype SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Design intent must not be lost when design models are converted to engineering models Some of the most valuable feedback to inform future designs is only received after the solution has been released to the market Handing off the design to engineering and walking away does not work! In re-design, the hardest part is to leave the beaten track Design must remain engaged and empowered to weigh-in on every significant engineering trade-off Existing solutions must not be allowed to dominate the redesign discussions. SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 Designers & MBA’s Creativity & Innovation Empathy & Passion SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005 …ask ‘em if you got ‘em SAP CONFIDENTIAL ©SAP AG 2005, , DST ©SAP AG 2005