Doing the right things Oliver Kemkpens CEO ITMP Deutschland GmbH ServiceDesign Jam Linz #3

IT Management Partner Deutschland GmbH

13 years on the borderline between entrepreneurship and corporate routine. > Business & Digital Transformation > Design Thinking & User-Centrism > Change Management

CEO ITMP Deutschland GmbH Advisor YARNEE, Magistral.IO, Talent Tree Chairman of the Supervisory Board d.standards Visiting Professor SKOLKOVO School of Management Guest Lecturer VERN, FH Upper Austria

Oliver Kempkens Entrepreneur. Consulting/Change Management. Design Thinking.

Introduction Design Thinking.

Bank of America Keep the Change

Question: How can we educate our customers to save money? Approach: Strong application of Design Thinking methods like Need-Finding and user observations. Result: » 12 million new customers since the start of the

program » 3.1 billion USD more savings » in less than a year BoA gained more than 2.5

million customers and they opened 700.000 new bank accounts

Implementation stage: launched in October 2005 Company / Organization: IDEO (“Keep the Change”

Account Service for Bank of America)

Alcoa / Coca Cola The Fridge Pack

Question: Re-design the packaging for cans to make them better fit into kitchens? Approach: Point Forward used intensive need-finding to explore desires, needs and opportunities in US households. Result: » Point Forward identified a post-purchase

barrier in refridgerators. » Coca Cola increased sales by 10% Implementation stage: implemented in 2002 » Fran Luckin: Creative Freedom » The story behind Fridge Pack Company / Organization: Alcoa, Coca Cola and PointForward

Audi Mobility Question: How will the future of mobility look like? Approach: 6 month project with 4 team members intense need-finding in europe over 40 prototypes and all tested final technical and software based prototype Result: Peer-to-peer car sharing (P2P) target group: businesses and private households Implementation stage: Audi adopted the prototype new business division „Audi unite“ Company / Organization: University of St.Gallen (HSG)

ITMP

Experience Innovation

Design Thinking addresses the intersection of all three domains

Design Thinking What is it?

Design Thinking

Design Thinking is a mindset, culture and process to create products, services and business models based on extensive

human centered research and iterative prototyping.

...it is over 40 years old.

(Re)define the problem Design never ends

Needfinding & Synthesis Understand the users & the design space

Ideate Brainstorm

Design Thinking is an iterative process

Prototype Build products, services and

business models

Test Intense customer and

user testing

Need-Finding Traditional Medicine in South Africa

Need-Finding Objective: Early identification of direct and indirect custo- mer needs. Design Thinking applies interviewing, observation and engaging techniques to explore the customer and stakeholder space. Approach: Extensive field research with customers and other stakeholders/participants. The Design Thinking team mostly visits real locations. Depending on the challenge the team travels globally. Result: Insights and concrete observations from the field. These results are the requirements for a proper ideation phase. Picture: Observation and interview with a traditional witchdoctor (medicine man) in South Africa (2015).

HSG, 2014

Need-Finding Interviews in laboratory environment (B2B)

In Need-Finding we apply three methods

Ask Observe Engage

Synthesis Generating insights

Synthesis Objective: The objectives of the synthesis phase are mani- fold: first, structuring interviews and observation. Second, analysing the content and results. Third, applying frameworks in order to identify patterns and new insights. Approach: Structuring of interviews and observation on foam boards or other walls with Post-its. Apply common or new frameworks to the topic. Result: Condensed / compressed results and insights. Both give directions for the ideation and brain- storming phase. Picture: Interview protocols with stakeholders in the pharmaceutical industry. We conducted over 30 interviews globally (2015).

Synthesis Analyzing customer data within a team

Prototyping Make ideas real.

Prototyping Objective: Make ideas real and tangible. The goal is to make idas and concepts as soon as possible testable for customers and other stakeholders. Further- more, it helps to communicate ideas in the team and the company. Approach: In the beginning of a project we use low resolution prototyping in order to be fast and quick. Later in the process we build high resolution prototypes that demonstrate the full functionality of a product or service. Result: Business models, services, products or processes which can be tested with customers and other stakeholders. Picture: One of the first 3D printer for electronic components. In 2005, RepRap, an open-source initiative, was created to build a 3D printer that would printer its own components.

From low to high Resolution

» Simple and easy to handle prototypes » Quickly created » Focus is on few features / critical functions » Costs: low

» Complex simulations and prototypes of the future product, service or process and business model » All important functions are implemented » Costs: higher

Low resolution prototype High resolution prototype

Prototypes Wireframes

Paper Wireframes

Critical Experience Prototype

Prototypes Mix Prototypes

Prototypes Digital Prototypes

Customer testing

Testing Objective: Permanent testing of ideas and prototypes with customers, users and other stakeholders. Testing helps to fail in early project stages and to involve the customer in your own ideation process. Approach: Interviews and other field research techniques can be used for testing but also in-house testing methods like focus groups. Result: Steep learning curve for successful elements and early identification of failures. Picture: Customers testing of a prototype (2015).

Testing of physical banking products

(Re-)define the challenge

(Re)define the problem Design never ends

Needfinding & Synthesis Understand the users & the design space

Ideate Brainstorm

Design Thinking is an iterative process

Prototype Build products, services and

business models

Test Intense customer and

user testing

Design Space Exploration

Final prototype

Critical Function prototype

Dark Horse prototype

D I V E R G I N G C O N V E R G I N G

Funky prototype Functional

prototype

X-is finished prototype

Dark Horse Prototype

Lorem Ip- T-Shaped People

T-Shaped people broad knowledge

in-d

epth

kno

wle

dge

How to apply Design Thinking in Companies?

For what situation is it made for?

Wicked Problems Ill-defined Problems Defined Problems

Design Thinking full approach

Design Thinking integrated approach

Design Thinking mindset and tools

For what situation is it made for?

Wicked Problems Ill-defined Problems Defined Problems

Combine agility with creativity and human centered design!

Stanford University

New Management principles need to be in place to change a culture

» belief in the individual » freedom and “let do” culture » use the power of small teams » fail early and often in order to learn sooner » forget discounted cash-flow methods for innovations

and think about affordable losses

» Management: long lasting top management support » Relevance: relevance for Design Thinking needs to be clarified in advance (Why) » Time: employees need time to conduct customer interviews etc. » Comprehensiveness: development of a comprehensive approach in

order to develop performance criteria, adjust the organization and processes

» Success! lighthouse projects can demonstrate the success quickly

and convince other colleagues » Adaptation: customization of the Design Thinking method toolset to

your organization - there is no standard!

Key success factors

THANK YOU! Oliver Kempkens ok@kempens.me #oliverkempkens

The easiest way to start is a Lighthouse Project

External Approach

Objective: Fast outside perspective on given topic. Approach: Staffing of external multidisciplinary team. Advantage: fast and flexible Risk: not invented here syndrome and in highly complex situations lack of knowledge and knowhow

Objective: External support for in- ternal driven development and re- search projects. Approach: Combined staffing with method professionals from outside the company. Advantage: fast access to expert knowledge Risk: -

Integrated Approach Internal Approach

Objective: Adoption of Design Thinking knowledge inside the company. Approach: almost internal staffing with external coaching Advantage: access to Design Thinking knowledge Risk: depending on the organization maybe slow