IT Executive's Guide to Design thinking | Algarytm
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The document outlines the importance of design thinking in the modern algorithm economy, emphasizing that companies must adopt a user-centric approach to achieve successful technology integration and enhance business performance. It describes the benefits of design thinking, including simplified problem-solving, innovation fostering, and increased profits, backed by case studies from successful companies like Airbnb and IBM. Additionally, it provides a roadmap for implementing design thinking in organizations and measuring its impact on performance.
![Source: Stanford D.School [7]
Imagine the “ideal”
Understand the problem space Create the solution
Problem Definition
Project Plan
Data Insights
Design Principles
Ideas
Concepts
Low-Fi / High-Fi
Prototypes
Blueprint
360°
Research
Scoping Synthesis Ideation Prototyping Validation Implementation
Creating
Choices
Making
Choices
Creating
Choices
Making
Choices](https://image.slidesharecdn.com/designthinkingv0-170519110604/85/IT-Executive-s-Guide-to-Design-thinking-Algarytm-12-320.jpg)
IT Executive's Guide to Design thinking | Algarytm
- 1. Digital strategy for the algorithm economy IT Executive’s Guide to Design Thinking
- 2. • Today’s marketplace calls for every company to be a high-tech company. • Presenting complex information on a small screen emphasized the importance of design. • Companies such as Airbnb, Uber and Google are leading solely based on design. • Design & User Experience play a deeper role in successful Integration of technology into business. • IT teams have numerous opportunities to improve business performance with design. • Understanding the Value of Design, laying out a business case & integrating design into business are key challenges faced by IT teams across organizations. • Now it’s turn for IT Teams to embrace Design Thinking in products & services to out beat competition. Executive Overview
- 3. “No one likes rotten milk. It has to be fresh” Tim Cook, CEO of Apple Inc.
- 4. What is Design Thinking?
- 5. Design Thinking is about achieving a deeper understanding of your users’ functional and emotional needs
- 6. • Design thinking is a paradigm shift in solving problems and innovating • Design is not just about colors, look & feel • Building deep empathy with your end user is the foundation of design thinking • For IT Teams, design is about achieving the full potential of software applications. Design is taking over boardrooms. Source: McKinsey Digital Labs A New Kind of Leadership Design Thinking is being used to create strategic visions, new markets and new customers behavior
- 7. “Design thinking helps you seek a balance between: intuition and analytics, exploration and exploitation, reliability and validity, and art and science” Roger Martin
- 9. Some of the Business Benefits • Simplify complex problems • Acute problem identification • Foster innovation • Enhance profits & shareholder value • Command brand loyalty • Build high quality software and eliminate technical debt • Streamline business processes • End to end integration • Gain competitive advantage • Reduce costs • Deliver amazing customer experiences
- 10. How does Design Thinking work?
- 11. Iterative (non-linear), collaborative (cross functional) process and consists of five main phases.
- 12. Source: Stanford D.School [7] Imagine the “ideal” Understand the problem space Create the solution Problem Definition Project Plan Data Insights Design Principles Ideas Concepts Low-Fi / High-Fi Prototypes Blueprint 360° Research Scoping Synthesis Ideation Prototyping Validation Implementation Creating Choices Making Choices Creating Choices Making Choices
- 13. • Empathy for the end user is at the heart of design thinking • Empowers the designer to understand the people by observation. • By observing, learn insights about the user’s emotional and contextual needs. • These surprising insights will be the difference between a solution people would love to use and a solution people avoid. Design Phase - Empathy
- 14. • Identify the actual business problem. • Avoid the trap of solving a wrong problem with a wrong solution by synthesizing the findings from the empathy phase. • Important because it explicitly helps to state the business challenge that you are trying to provide a solution for. • Assuming the problem is the root cause of failure. Design Phase - Define
- 15. • Produce as many ideas as possible to solve the business problem identified during the define phase. • This stage involves buy vs build decision, platform to build upon decision, and SWOT analysis of existing set up. • Every idea is worthy to consider and it’s too early to dismiss any idea. • Power users or hacker users who find workaround apps and tools to solve their business problem are the best bet to produce ideas. Design Phase - Ideate
- 16. • Prototyping is converting ideas and thoughts from an abstract form to a concrete form. • Make the prototype interactive, elicit feedback, and quickly adapt the feedback. • Learn how close the prototype is to the real solution. • A major benefit of prototyping and taking feedback is to develop successful products with profound empathy for the users. Design Phase - Prototype “A Picture is worth 1000 words. A Protoype is worth a thousand ideas”
- 17. • Test the proposed solutions, continue to gain feedback from users and refine them. • Testing does not need to be the final phase. • Design thinking is a non-linear methodology and you can go back to any relevant phase to refine the solution. Design Phase - Test “Prototype as if you know are right, but test as if you know you are wrong” D.School Design Thinking Philosophy
- 18. Business benefits of Design Thinking
- 19. Google and Apple have incorporated UX design as a center piece of their successes. As per IEEE, up to 15% of IT projects are abandoned and developers spend approximately 50% of their time on rework. Innovative Ideas = More problem finding / Less problem solving
- 20. • Simplicity is the need of the hour. Great design reduces the friction between the user and the application. • Straightforward and aesthetically pleasing products are compelling to use and more relevant in the mobile first world. • Unfortunately some enterprise software developers do not even know who the end user is. 1. Simplification
- 21. • Design hinking mandates you to determine whether the problem itself exists to start with and whether it is the right problem to solve. • An in-depth understanding of the problem itself enables you to prioritize the challenges of the business. • The design thinking process does not assume the problem as given. 2. Acute Problem Identification
- 22. • One of the biggest benefits of design thinking is fostering an innovation culture in your organization. • In order to innovate, it is necessary to learn what your people’s needs are. Cross-disciplinary teams tackle the problem from different perspectives leading to an innovative solution. • This results in accumulation of ideas and creating an open culture to express ideas with out hesitation. 3. Foster Innovation Innovation does not happen in isolation. Desirability People Viability Business Feasibility Technology Innovation Opportunity What we are traditionally been good at
- 23. Design oriented products and services not only create the amazing experiences that customers expect, but they also generate higher profits. 4. Higher Profits & Shareholder Value Design Management Institute, in its study on design thinking, discovered that design oriented firms such as Apple, Starbucks, Steelcase, and Walt Disney outperformed S&P index by 224% over a 10-year period from 2002. Source: Design Management Institute $45K $40K $35K $30K $25K $20K $15K $10K $5K 228% $17.522,15 $39.922,89 JUN‘03 DEC’03 JUN‘04 DEC’04 JUN‘05 DEC’05 JUN‘06 DEC’06 JUN‘07 DEC’07 JUN‘08 DEC’08 JUN‘09 DEC’09 JUN‘10 DEC’10 JUN‘11 DEC’11 JUN‘12 DEC’12 JUN‘13 DEC’13 A $10.000 investment in our design index of diverse design-centric companies would have yielded returns 228% higher than the same investment in the S&P over the same amount of time. D.INDEX S&P INDEX DMI DESIGN CENTRIC INDEX DESIGN CONSCIOUS COMPANIES APPLE COCA COLA FORD HERMAN MILLER IBM INTUIT NEWELL RUBBERMAID NIKE PROCTER & GAMBLE STARBUCKS STARWOOD STEELCASE TARGET WALT DISNEY WHIRLPOOL
- 24. • Apple’s products are simple to use, high quality, and beautiful. It created superb experiences for its customers with significant emphasis on design. • Strong customer loyalty results in improved financial performance. 5. Command Brand Loyalty
- 25. • Streamlining a business process plays a critical role in creating amazing digital experiences. • With insights and feedback learned from users during design thinking sessions, you have an opportunity to eliminate manual steps and automate possible steps. • One of our clients, a wholesale distributor, transformed his reverse logistics business process by embracing design thinking. 6. Streamline Business Processes
- 26. • Mine was losing $1M to $2M worth of productivity while critical machinery was down. • Design centered solution cut the response time to few hours. 6. Streamline Business Processes An Example Mining Workers Call Centre Service Engineer Calls Updates Service Engineer approaches site to fix the issue A leading global mining company’s customer support process was inefficient.
- 27. • Customer experience involves hardware, software and service. • An incomplete solution that does not integrate the entire workflow of the end user will result in an incompetent solution which is risky. • It is important to consider software, hardware and service and ensure all are working together cohesively. 7. End to End Integration: Hardware/ Software/Service Integration
- 28. • More ideas = More innovation. 8. Gain Competitive Advantage At the heart of design thinking is abductive logic, which sits squarely between the past data-driven world of analytical thinking and the knowing-without-reasoning world of intuitive thinking.” - Roger Martin Source: Roger Martin’s, “The Design of Business”. The design of business The Knowledge Funnel • Mystery It starts with a question, intuition, curiosity • Heuristic Open-ended rule of thumb, incomplete but helpful for organizing data • Algorithm Full description of the observation, predictive and rational
- 29. “According to several reports, 50% of developers’ time is spent on correcting defects and bugs”. • With good design, Product Development Costs are reduced. • Reduce Project execution Risks and improve ROI. • With simple UX, Change Management becomes easy. 9. Reduce Cost
- 30. • Amazing customer experience is one of the key differences between new generation companies such as Google, Amazon, Starbucks and Nike, and old guard. • For example, Amazon is not only known for their order fulfillment and delivery but also known for their easier and integrated reverse logistics. 10. Deliver Amazing Customer Experiences
- 31. • Eliminate technical debt that cripples development teams during maintenance and scaling of the applications. • The design thinking process enables Developers to have a deep understanding of the user by leveraging storyboards, personas and wireframes. 11. Build High Quality Software & Eliminate Technical Debt “Sufficient amount of messy code may bring whole engineering department to a stand-still”, - Sven Johann & Eberhard Wolff, INFOQ
- 32. Case Studies
- 33. • Airbnb attributes its market dominance to user-centred design. • When they about to go bust at $200 revenue per week Airbnb discovered that all of the photos for their listings were low quality and unattractive • Airbnb decided to replace the amateur photos with high-quality photos and it worked. From near collapse to conquering the market
- 34. “Going out to meet customers in the real world is almost always the best way to wrangle their problems and come up with clever solutions” Joe Gebbia of Airbnb with First Round.
- 35. • Hyatt wanted to stay away from crowded luxury hospitality industry by creating amazing experience for its guests. • During Design thinking process they figured out that guests were waiting at airport for shuttle bus. • Hyatt moved the agents to airport where they could complete the process. • ‘more approachable, less hiding’ approach of interaction between guests and hotel staff. • Customers were thrilled to have such experience. Thrilling Guest Experience
- 36. • IBM’s revenue was down 14% year over year and it was the 14th consequent quarter of losses. • IBM has used design thinking to spur innovation and trained all of its employees and trained over 8000 executives. • By working with developers, IBM exceeded the expectations on BlueMix Product development and it became a huge success in the market. IBM’s success with Blue Mix
- 37. Getting Started
- 38. • Establish a Design Centre of Excellence (CoE). • Partner with design consulting firms. • Activate feedback loop and leverage existing channels such as app stores, portals, and websites. • Create dedicated websites where customers can submit ideas, discuss features, and engage with customer support. • Connect with your customers by actively seeking feedback from them through reviews, feedback on your website, forums, and personal visits. • Work closely with Marketing & Sales. Getting Started With Design
- 39. Measuring ROI
- 40. • Measuring how design thinking impacts your organization is vital to getting continued support. • Few Direct & Indirect ways to measure creative effort are. • # New Ideas generated • Customer Support costs • Application Maintenance costs • Employee engagement • Sales • Risk • Organizational Change Management Measuring Design ROI
- 41. “In the modern world of business, it is useless to be a creative original thinker unless you can also sell what you create. Management cannot be expected to recognize a good idea unless it is presented to them by a good salesman” David M Ogilvy
- 42. Download the e-book on Design Thinking from here: http://www.algarytm.com/it-executives- guide-to-design-thinking
- 43. About Algarytm 50+Mobile projects 75 People 4 Years in business 300+ Technical interfaces 100+ Yrs or collective ERP experience 20 Global SAP mobile vendors Google mobile app challenge winner • An Award winning Enterprise Digital Solutions provider • Turn-key suite of 100+ Mobile solutions to solve complex business problems • Elite team of User Experience & Design Thinking Experts • Global presence across US & India • Services: SAP Fiori, Oracle Mobile Cloud (MCS),SMP, Syclo/Agentry, Hybris Marketing Automation, Hybris eCommerce, Hybris C4C, Design Thinking, User Experience.
- 44. Raj Peddisetty is a Digital Transformation advisor at Algarytm. Raj is a seasoned practitioner of Design Thinking, User Experience in Mobile, Ecommerce, Cloud and Marketing automation. Raj brings 11 years of experience in SAP, Oracle for industries ranging from Wholesale, Retail to Manufacturing and Healthcare. Raj has worked as a consultant, architect, developer for system integrators such as IBM, Accenture, Cap Gemini, SAP, CSC. Raj has helped global business transformation projects for Fortune 500 clients such as Wyeth Pharmaceuticals, The Dow Chemical Company, Colgate Palmolive, National Gypsum, Medtronic, The Patterson Companies, Harland Clarke. Raj has an MBA from the University of Chicago Booth School of Business and is certified in Design Thinking by IDEO. About the Author Contact him to learn more about how to leverage Design Thinking in IT Projects.
- 45. Stay in touch Follow us on https://twitter.com/Algarytm https://www.linkedin.com/company/Alg arytm https://www.facebook.com/Algarytm1/ https://plus.google.com/+Algarytm Our Contact information Address Algarytm 17772 Preston Rd, Dallas, TX 75252 Contact number 318 235 5720 Email sales@algarytm.com Website www.algarytm.com