ktc Empathy-driven Innovation Part 1
- 1. WEBINAR Empathy-driven Business Design Putting the customer first at every element in business design
- 2. 2
- 3. 3
- 4. 4 42% had “no market need.” THE 1ST REASON WHY STARTUPS FAIL: In other words, there was no customer. -CB Insights, 2019.
- 5. 5 “I realized, essentially, that we had no customers because no one was really interested in the model we were pitching. Doctors want more patients, not an efficient office.” CEO Treehouse Logic
- 6. 6 We had great technology, great data on shopping behavior, great reputation as a though leader, great expertise, great advisors, etc, but what we didn’t have was technology or business model that solved a pain point in a scalable way.” CEO Kolos
- 7. Current problems with innovation
- 8. 4 Tech-driven instead of empathy driven we are completely addicted to developing products and test MVP’s instead of validating customer needs.
- 9. Tech-driven ideation is an easy way to generate new business ideas 9source: PwC, 2019
- 10. “The dream of selling that solution became so attractive we invented the customer problem”. 10
- 11. 4 Treating humans as machines Oversimplifying needs, while people are complex beings with hard to research motivations
- 12. 4 Lack of systems thinking Blindness to the customer’s perception of value delivery
- 13. It is time for a new approach to innovation
- 14. An empathy-driven look on Innovation Empathy Pull vs Technology push Going beyond functional needs Systems thinking vs indivudual squares EMPATHY-DRIVEN INNOVATION FUNDAMENTS
- 15. EMPATHY-DRIVEN INNOVATION People first, technology second. Starting with a clear indication of actual customer needs will increase the success rate, drastically.
- 16. It sounds very simple, right?
- 17. It’s hard to empathize with mass markets 17
- 18. 18 But finding common needs in niches becomes easier
- 19. The art of going smaller, instead of bigger 19 Conscious shoppers of Amsterdam Looking for deals Looking for quality Looking for vegan Vegan Bio 0% Waste niche subniche subniche subniche
- 20. 20 Green Tech Lovers San Francisco Black Limo Owners & Drivers Some powerful niches Looking for power + sustainability Looking for increasing their revenue
- 21. How we used to segment 21 Demographic
- 22. How niches look like 22 Belief system Geography InterestsHabits Tech- Savviness Openness to change Demographic
- 23. 23 Exhausted, stressed and in need of solutions to de-clutter From burnt-out Millennials to time-poor Boomers, everyone is suffering. This group is stressed, scared of failure, exhausted and under pressure. THE COMPRESSIONALISTS Source: WGSN; Trendwatching
- 24. 24 The world seems too complicated, but this group is fighting back, together. At the same time that consumers get overwhelmed, others take a stand, forming alliances that are informed, fighting online hate, conscious and sustainable. THE WORLD AMBASSADORS Source: FJORD Accenture; Trendwatching
- 25. 25 Goodbye to middle man, hello to peer-to-peer The mark of the makers is their self- emancipation. They are politically-aware, opinionated, entrepreneurial and make use of data for their own profit, crossing conventional market borders. THE NEW MAKERS
- 26. The first rule in empathy driven-innovation: discover big pains in small groups. 26
- 27. Ranking pains 27
- 28. Low impact problem Doing nothing is a viable option 28 Small Pain: Mosquito Bite A mosquito bite is a problem that is not valuable, it has low impact, and people can live with.
- 29. High impact problem “I need a solution for this problem, badly” 29 Big Pain: Shark Bite A shark bite is a problem that customers are already trying to solve by themselves, one that customers are willing to pay for.
- 30. Mass Market Classifying Potential 30 Niche Measure the size of your potential market
- 31. How to discover real opportunities in niches? 31
- 32. Discovering real opportunities in niches Mass Market Mosquito Bite Typical tech-driven innovation, marketeers love the potential, but in reality users don't care. X = 32
- 33. Mass Market Mosquito Bite Typical empathy-driven innovation, marketeers hate it, innovators see the potential to “scale on niches”. X X = = Shark Bite Niche market 33 Discovering real opportunities in niches Typical tech-driven innovation, marketeers love the potential, but in reality users don't care.
- 34. 34 Today’s niches are tomorrow’s defaults
- 35. A online-only supermarket for price-aware modern urban busy convenience shoppers with a green belief system
- 36. An internet-only restaurant chain for people that want on-demand food that is as good and cheap as eating at home, launched in urban India
- 37. People looking to rent cheap accomodations whenever events are happening, door-to-door in NY
- 40. Small dutch entrepreneurs (new makers) always “on the go” looking for a simple digital solution for their companies.
- 41. In innovation, think niches and underserved markets. start with empathy, not technology. 41
- 42. 42 idea tech-driven solution? niche who might actually need it? empathize what and how big is the need? Avoiding the tech driven, MVP style innovation
- 43. 43 niche find underserved groups empathise learn about your niche idea create unique value for niche Avoiding the tech driven, MVP style innovation
- 44. Tools next week! 44 niche find underserved groups empathise learn about your niche idea create unique value for niche
- 45. If you cannot find or describe your first 10 customers, you will never reach the first 1.000.000 45
- 46. Today’s winners are companies that solve big needs in niches instead of small needs in masses. 46 First rule of empathy driven innovation
- 47. An empathy-driven look on Innovation Emathy Pull vs Technology push Going beyond functional needs Systems thinking vs indivudual squares EMPATHY-DRIVEN INNOVATION FUNDAMENTS
- 48. Treating humans like machines makes innovation predictable, boring and one-dimensional. 48
- 50. FUNCTIONAL INNOVATION: SOLAR PANELS The value proposition “You will earn back your money 10 years from now" Competition: Other more efficient solar panels, but also banking, since it’s merely a financial decision (saving money).
- 52. MULTI-DIMENSIONAL INNOVATION: SOLAR PANELS The value proposition “We make roofs come alive” Creating a world where you look around the neighborhood and the roofs are all gathering energy.”
- 53. “we invented solar design”
- 54. MULTI-DIMENSIONAL INNOVATION: SOLAR PANELS The value proposition (B2B) Beautifully designed solar architectural panels for special construction projects Solarix geeft energie aan mensen. Groene energie koppelen we aan schoonheid en slimme toepassingen: Solar Design
- 55. Don’t settle for less Zoom in on people and look for the mix of functional, emotional and social needs you can solve in a unique way. 55
- 56. An empathy-driven framework - JTDB Emathy Pull vs Technology push Going beyond functional needs Systems thinking vs indivudual squares EMPATHY-DRIVEN INNOVATION FUNDAMENTS
- 58. I N N O V A T I O N B E Y O N D T E C H 58 Social Jobs Support JobsFunctional Jobs Emotional Jobs 4 types of jobs-to-be-done Performing or complete a specific task or problem to solve. Looking for a specific emotional state, such as feeling good or secure. Look good or gaining power or status: how they want to be perceived by others. Perform supporting jobs in the context of purchasing and consuming value, as a buyer, co-creator or as transferrer of value.
- 59. I N N O V A T I O N B E Y O N D T E C H 59
- 60. I N N O V A T I O N B E Y O N D T E C H 60 Functional Job
- 61. I N N O V A T I O N B E Y O N D T E C H 61 Emotional Job
- 62. I N N O V A T I O N B E Y O N D T E C H 62 Emotional & Social Job
- 63. I N N O V A T I O N B E Y O N D T E C H 63 Social Job
- 64. 64 Designing for emotions is the next step in CX design that answers the need to go beyond functional jobs
- 65. 65 UBER SUCCESS Design for trust Uber realised that in the taxi-business, trust is essential. At every step of the customer experience, they make an effort of embedding trust. see availability of taxis instantly no cheating on the price giving a face and review to anonymous drivers
- 66. 66 STEDELIJK MUSEUM Design for inclusion In this modern & contemporary art museum of Amsterdam where many exhibits challenge the reality in which we currently live with new narratives, the museum itself follows the challenge of norms with gender neutral toilets and temporary participative exhibitions where families can participate.
- 67. 67 Design for fun TIKKIE Tikkie flipped a potentially embarrassing act - charging your friends - into a fun and positive experience through redesigning user experience, new positioning, tone of voice and friendly user interface.
- 68. 68 design for inclusion Design for fun design for the future Design for convenience design for trust A DESIGN SYSTEM TO NAIL ALL TOUCHPOINTS Create direction & consistency through Design Principles Align on feeling and act on principle: in an era when all brand logos are modern sans serif names, designing an atmosphere through customer experience will be king. to align: Product, added services, customer service, internet presence, corporate communication
- 69. Winners are companies that are able to designing products and services that press the right buttons in a complex but validated set of jobs-to-be-done. 69 Second rule of empathy driven innovation
- 70. Our look on Innovation Niche markets Multi-dimensional innovation systems thinking: a logic customer driven business model BLOCK 1: INNOVATION FUNDAMENTS
- 71. The empathy driven business model: creating a holistic view of the value chain that makes sense to customers 71
- 72. 72 Change the outlook from products to benefits, or jobs to be done. Your customer will experience a whole journey from before to after using your product, inevitably associated to it. So better anticipate it, and design the whole thing. Systems Thinking GO BEYOND PRODUCT Product Design Customer Experience A!iliated platforms governance Partner ecosystem service maintenance Product context sales funnel retailer delivery
- 73. Systems thinking at Tesla Business Model Own the ecosystem Go-to Market Boutique stores & web-only X X Customer Experience Ludicrous mode/ OTA updates X 73 Value Proposition An electric car
- 74. 74
- 75. 75 A product-service ecosystem brought together representing the richness of the Italian culture. Instead of being an imported-goods shop, the company became an imported-culture experience, now open in more than 35 locations around the globe. Design for cultural excellence Eataly EAT BETTER. LIVE BETTER. Workshops (wine, cooking) Integrated shop Tours Same-day delivery A+ Supplier network Online shop
- 76. I N N O V A T I O N B E Y O N D T E C H 76 + + ?
- 77. 77 Picnic : electric small cars, urban delivery, smarter routes with less footprint
- 78. 78 rebelfoods: makes sense for end client and producer
- 79. 79 Empathy driven business model:what used to be behind the curtain and not important, is now part of your front end and how you are perceived by the customer.
- 80. Empathy driven design framework Desirability, Feasability and Viability BLOCK 1: INNOVATION FUNDAMENTS
- 82. problem fit is this problem interesting enough to solve? Are we in the right niche? product fit Is this the product customers want Design, price, platform, etc business model fit Subscription, auction, on- demand, value-based, cost-based, etc. 82
- 83. 83 Problem-Fit Our first step in innovation is finding a problem that needs solving. This means navigating customer empathy to discover real pain points, and validation by experiments to get a firm grip of the problem the customer is experiencing. We focus on niches with common problems or needs and scale upon them afterwards — as Uber, Picnic or Amazon did. Date:Group name:Designed for:Job Statement Canvas Designed for ktc. This work is part of a NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) license. Verb What is the customer trying to do? Product: The product/service are you analyzing Customer: Who are using your product/service? Demographics, habits, distinctive traits Object To what object is the customer trying to do the verb? Context The context is a clarifier modifier Functional Goal Priority Direction of improvement: Minimize, eliminate, increase, create, other Emotional Goal + Social Goal Priority Priority Priority Unit of measure/ customer value Time, likelihood,frequency, risk, amount, number... First 10 Canvas Customer Development Interviews Problem Insight Canvas Jobs to be done