Post on 24-Aug-2021
DARESAY
WHY DESIGN THINKING WORKS
JEANNE LIEDTKA, UVA DARDEN SCHOOL
some new research
• Forrester study of IBM’s design thinking practices showed 301 percent ROI with estimated benefits of $48,360,958 over three years
• McKinsey study of 300 firms over 5 years demonstrated enhanced revenue growth of 32 percentage points and an increase of 56 percent in shareholder return
• 70% of CEOs list fostering innovation a top strategic priority and insist innovation is essential to strategy
• 90% of CEOs say customer experience is a prime issue
Other data supports DT relevance and effectiveness…
What is Design Thinking?
6
Design as a Problem Solving Approach
ALIGNING AROUND WHAT MATTERSIN CUSTOMER EXPERIENCE
TOM’S STORY
3 CONTACTS with MH clinicians (in person)
13 CASE MANAGERS touched 70 TIMES
18 HAND OFFS
5 IT SYSTEMS
15 PAPER RECORDS with lots of different updates
IMPACT OF DT ON MONASH’S INNOVATION PROCESS
- Helps in reframing the problem itself clinicians look at the journey from Tom’s
perspective
- Develops user-driven criteria for ideation They realize that care is top criteria
- Aligns team members’ perspectives Across specialties they can design together
- Encourages emotional engagement They feel Tom’s frustrations
WE CAN THINK ALL KINDS OF THINGS ABOUT HOW WE BELIEVE THE SYSTEM IS WORKING,“
but then seeing the reality of how it was really working, it was shocking to see how far from our intentions reality had come.
Patients needed someone to be present for them. Despite a flurry of activity, nothing was changing for them. We needed to feel the blockages and struggles.
DR. CHRISTINE MILLER
OUR RESEARCHSITES
WHAT DOES DESIGN THINKING CHANGE?
CHANGES IN “HARD” MEASURABLE OUTCOMES
MEASURABLE CHANGES IN PERCEPTION
CHANGES INTHE CONVERSATION
CHANGES INHOW PEOPLE
THINK
HOW DOES DESIGN THINKING GET US THERE?
CHANGES IN “HARD” MEASURABLE OUTCOMES
MEASURABLE CHANGES IN PERCEPTION
CHANGES INTHE CONVERSATION
CHANGES INHOW PEOPLE THINK
Increased “hot leads” at trade shows
Reduced customer response time at call center
Reduced ER usage
Adoption rates for new agricultural methods
HOW DOES DESIGN THINKING GET US THERE?
CHANGES IN “HARD” MEASURABLE OUTCOMES
MEASURABLE CHANGES IN PERCEPTION
CHANGES INTHE CONVERSATION
CHANGES INHOW PEOPLE THINK
Net Promoter Score
Employee engagement
Understanding and commitment to strategy
FEDERALAGENCY
HOW DOES DESIGN THINKING GET US THERE?
CHANGES IN “HARD” MEASURABLE OUTCOMES
MEASURABLE CHANGES IN PERCEPTION
CHANGES INTHE CONVERSATION
CHANGES INHOW PEOPLE THINK
Reframing of challenge
Focus on user-driven criteria
HOW DOES DESIGN THINKING GET US THERE?
CHANGES IN “HARD” MEASURABLE OUTCOMES
MEASURABLE CHANGES IN PERCEPTION
CHANGES INTHE CONVERSATION
CHANGES INHOW PEOPLE
THINK
Farmer’s fear of adoption
Clinicians come to see patients’ perspective
Value delivered by design thinking
- tool kit for producing more creative ideas
- risk management strategy
- facilitator of behavioral change
- increasing the speed of innovation
- vehicle for empowering local capability
building
- way to convene conversations for change
across diverse stakeholders
SOME PEOPLE HAVE THE VIEW OF DESIGN THINKING“that if you get a whole bunch of people in a room with Post-It notes, something magical happens.
And afterward, you don't quite know how you did it. Instead, you have to make it clear that there’s a rigorous methodology in place that people can learn.
We want to be leading edge, not bleeding edge. You need a very structured methodology that lets you safely work through the elements.DR. DON CAMPBELL
DARESAY
TURNING
DESIGN INTO
BUSINESS
”There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”Sam Walton, founder of Wal-Mart
So, if customer centricity isthat important, and design
methodology such a great tool,why is it so hard to get started?
DARESAY
5. Launchfast andrelease often
T H E C O R N E R S T O N E S O F D E S I G N M E T H O D O L O G Y
DARESAY
1. Base your ideation on customer insights
2. Prioritize your ideas on customer value
3. Test your ideas and prototypes on customers
4. Co-create in multidisciplinary teams,involving customers
!
Some challenges whenimplementing
design methodology
DARESAY !
”I don’t understand how design can help us developing strategies, we already have a good understanding of the customer buying behaviour.”
1The Knowledge
Gap/Bias
“We can’t get any resources – the development department have a huge delivery this month, and the marketing department are planning our important Christmas campaign right now.”
2Existing
Company Structures
“We know our business and our customers very well, so we know what we need to do to make the customer more satisfied.”
3Expert Culture
“Well, we understand that young companies, which are digital at core, can move fast. But our platforms are 40–50 years old, so it is basically impossible to do anything short term.”
4The Burden
of the Technical Legacy
”I can calculate the return on the investment to drive traffic to our web, but what is the return on a customer journey?”
5Understanding
the Business Value of Design
X =CUSTOMER
BASE
CUSTOMER
LIFETIME
VALUE
ExistingCustomers
NewCustomers
ChurnCustomerLifetime
Acquisition&
RetentionCost
AverageRevenues
AverageCost
BUSINESS
VALUE
Contribution Margin
T H E K E Y I S T O U N D E R S TA N D T H E B U S I N E S S V A L U E D R I V E R S
!
DARESAY
Concept phase
1xStrategy and exploration
10x
100x
Development phase Post-launch
T H E V A L U E O F D E S I G N F R O M A C O S T P E R S P E C T I V E
The cost for making changes to your product and service increases dramatically when moving along the ”design development axis”.
Save money – test early
Source: Cost-Justifying Usability – An update for the internet age, Randolph G. Bias, Deborah J. MayhewDARESAY
Start a dialogue with your customers
Start small
Develop your CX roadmap
D A R E T O S TA R T
DARESAY
!
Magnus AhlströmCCO
+46 (0)709 468000magnus.ahlstrom@daresay.co
THANKS!
DARESAY