Design Thinking 2 Mattias Arvola @mattiasarvola

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Design Thinking 2
What Wows and What Works?
Mattias Arvola
mattias.arvola@liu.se
@mattiasarvola
Dept. of Computer and Information Science
1
DESIGN
BRIEF
2
What is?
DESIGN
CRITERIA
What if?
NAPKIN
PITCH
What wows?
id
LEARNING
GUIDE
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Visualization
What works?
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
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
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
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
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?
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• 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?
Visualize
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What Wows? Testing the future in the present
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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
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
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
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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
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Assumption Testing: Articulate assumptions
• Customers:
• Why this concept will create
superior value to them?
• Competitors:
• Willingness to pay?
• Which competitors will be
affected?
• How many are they (market
size)?
• How will they react/
interfere?
• Your organization:
• How to create and deliver
promised value and what
capabilities will leverage?
• Missing capabilities?
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• Whom will you partner with?
• Choose a handful critical
assumptions
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
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?
16
• Revise the impact map
with stakeholders
• Add bulletpoints to the
nodes
• Rephrase map nodes
• Attach additional nodes
Rapid Prototyping
• Bring concepts to life with
details, form and nuance
• User scenarios
• Faking a new business
fast
• Business concept
illustrations
• Make ideas tangible to
share and discuss with
stakeholders and in the
team
• Lots of 2D
• Paper prototyping
• Storyboarding
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• Experience journeys
• 3D
• Built out design language
• Working model with more
features and details
What is the cheapest way
to test your assumptions?
• Early prototype:
• Concept sketch (2D)
• Time: 5 minutes
• Original design by high-profile
design consultancy
• Cost $1
• Fully functional
• Functional prototype
• Retrofitted cooler (3D)
• Magnetic door strike attached
• Keypad attatched
• Time: 3 days
• Materials cost: $600
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• Market test prototype
• Required original tooling
• Time to create: 3 months
• Materials cost <$10,000 (due to
tooling cost)
http://www.jfarny.com/kohls.php
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By Jurgen Leckie
http://leckie.nl/portfolio_debibliotheek.html
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SLUTA RÖKA
FÖRSTA DAGARNA GÅR BRA
NADINE FÅR OCKSÅ UPPMUNTRANDE
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sus tem
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Video prototype
• The Economizer
• https://vimeo.com/2523748
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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
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• 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
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
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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
Just do it
• Enroll customers who care
about you, but not as much
as they care about
themselves
• Test 2-3 options, at least
one you think is too extreme
• Leave it rough
• Diversity = security
• Let them change stuff, fill in
the blanks, sort out things
• Create a no-selling zone.
The customer should do
80% of the talking
• Leave time for discussion,
but let the customer answer
their own questions
• Engage one customer at the
time
• Remember: what
assumptions are you
testing?
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Functional computer
prototype
• https://www.youtube.com/watch?
v=_aVJMMVIwho
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Impact Mapping in Co-Creation
• Impact map with customers, developers
and users to jointly define a good
solution
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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?
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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
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Assignment 2
• Deliverables
• Napkin Pitch
• Learning Guide
• Methods:
• Start from your earlier
brainstorm
• Visualization
• Concept Development
• Assumption Testing
• Rapid Prototyping
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• Customer Co-Creation
• Gather initial thoughts on a
Learning Launch
• Integrate Impact Mapping in
the testing of assumptions
and customer co-creation.
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:
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www.liu.se
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