Design - What’s Next?
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Adam Richardson discusses innovation and design in a presentation for TOYCON 2007. He outlines three types of innovation - evolving existing assets, envisioning new strategic directions, and expanding into new markets. Richardson emphasizes that companies must take a wide peripheral view through multi-vector research to stay innovative in a world of divergence among customers, competitors and business models. He also discusses how in a convergent world, the overall system or experience is the product, not any single component. Richardson concludes by questioning if current toys are adequately preparing children to think about complex systems.
Design - What’s Next?
- 1. TOYCON 2007: Design - What’s Next? Adam Richardson, Director of Product Strategy
- 2. We are a strategic-creative consulting firm. frog brings a unique combination of strategic and creative talent to help companies envision, realize, and deliver actionable strategies for growth. Our rigorous yet unorthodox approach yields breakthrough innovation and a sustainable competitive edge.
- 3. 325 PEOPLE FROM 32 COUNTRIES. 38 YEARS GLOBAL EXPERIENCE. New York, NY USA Stuttgart, Germany Milan, Italy Shanghai, China San Francisco, CA USA Palo Alto, CA USA (HQ) San Jose, CA USA Austin, TX USA Seattle, WA USA
- 4. FROG MISSION
- 6. INNOVATION TYPES EVOLVE Invigorate existing assets with newly designed offerings better tailored to the needs of the industry, company and consumer ENVISION Reinvent an organization with new strategic directions and untapped business potential. EXPAND Innovate and enter new markets with additional products, services and strategies
- 7. CREATING SUSTAINED COMPETITIVE EDGE EVOLVE Incremental Innovation (~1 year) ENVISION Breakthrough Innovation (~5+ years) EXPAND Growth Innovation (~2-5 years) Typical distribution for companies where innovation has stagnated
- 8. “ Don’t worry about other people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats.” Howard Aiken, IBM Engineer Innovations must feel relevant to be effective
- 10. THE POWER OF DESIGN TO TRANSFORM AN ORGANIZATION Our traditional research told us that there was a total available world market of about two million units for a $499 phone; we sold over two million units in the UK alone. If you want to be a leading company, you have to create the products that create your destiny. Geoffrey Frost, former CMO, Motorola
- 11. THE POWER OF DESIGN TO CREATE PASSIONATE USERS US sales of the Prius are almost twice that of all Volvo models combined
- 12. THE POWER OF DESIGN TO CREATE RELATIONSHIPS Method is the seventh fastest growing privately-held company in the US. Annual sales estimated at over $44.9m. In 2006 their liquid hand soap sales grew 68% to $11.3m Style is what gets customers into a brand, substance is what keeps them there. Eric Ryan, Founder & CEO, Method
- 13. “ I n most people's vocabularies, design means veneer. It's interior decorating. But to me, nothing could be further from the meaning of design.”
- 14. TURBOCHEF OVEN
- 15. TURBOCHEF OVEN Analogous Products Customer Insights Cultural Trends
- 16. THOUGHTFUL DESIGN DELIVERS COMPETITIVE EDGE Differentiation at all points: shelf, in-use, advertising Richer, more fulfilling user experiences Emotional relationship between user, product and brand
- 17. Companies are being pulled apart by a force of Divergence
- 18. DIVERGENCE Who are our customers? Who are our competitors? What business are we in?
- 19. THE DEFINITION OF A TOY HAS DIVERGED
- 20. DISNEY KIDS CONSUMER ELECTRONICS
- 21. DIVERGENCE REQUIRES WIDE PERIPHERAL VISION NORMAL 180 47 BILL BRADLEY 192 72
- 22. MULTI-VECTOR RESEARCH TO EXPLORE THE PERIPHERIES USER OBSERVATION BRAND POSITIONING COMPETITORS MARKET DYNAMICS CULTURAL TRENDS COMPANY LEGACY TECHNOLOGY TRENDS RETAIL DYNAMICS LOGICAL BUT UNEXPECTED INSIGHTS
- 23. THE SHINING
- 25. WORKSHOPS TO TRANSFORM TEAM PERSPECTIVES
- 26. WHAT YOU GET FROM DIVERGENCE Change the rules of competition Create growth Prepare for convergence
- 27. Companies are being pulled together by a force of Convergence
- 28. In a Convergent World, the System Is The Product
- 29. MAXTOR
- 30. THE PRODUCT DOESN’T CREATE THE EXPERIENCE, THE SYSTEM DOES AWARENESS PURCHASE OUT OF BOX USE
- 31. Accessories MINI Retail Web Lifestyle
- 32. GOOGLE: SOFTWARE AS SERVICE
- 33. WHY THE iPOD STINKS High price Limited features Easy to scratch Hard to carry Can’t replace battery Cumbersome menus
- 34. WHY THE iPOD SUCCEEDED A convergent system that has given Apple a 5+ year competitive edge
- 35. WHAT YOU GET FROM CONVERGENCE Experience systems that are hard to copy Escape the commodity trap High customer loyalty
- 36. Divergence and Convergence require the ability to understand and conceive complex experience systems. Design is good at this.
- 37. The problems that exist in the world today cannot be solved by the level of thinking that created them. Albert Einstein Today’s global challenges require thinking about complex systems
- 39. Are we preparing our children?
- 40. Toys are tools for thinking