Tag Archive | Value Creation

Is Design Thinking a magical cure-all?

Change as a Challenge

The internet and with it the digitization and growing technological achievements are changing our world. Of course, change is nothing new; industries and companies have to face change every day through competition and innovation. Mootee describes, all companies must endure change to survive or grow (Mootee, 2013, p.124), but the change we’ve been experiencing for a while now, is particularly fast and influential. We are living in an age where change is reshaping industries and categories (Mootee, 2013, p.124) with great impact, bringing opportunities that we can exploit for growth, but also risks that can lead to an existential threat if we are not sensing it early enough and respond to it properly.

Change brings chances by Bento Orlando

Change is not the problem, but the challenge businesses have to overcome. The problem or danger, like Mootee describes it, lies in applying theories and practices based on outdated models of two or three decades ago (Mootee, 2013, p.99). As these practices and theories are outdated, they often cannot provide an adequate response to today’s challenges. More than 80 percent of our management tools, systems, and techniques are for value-capture efforts, not for value creation; (Mootee, 2013, p.75). This is a problem if a business wants to compete with other companies who can create and offer new values, which are requested by customers in this new landscape.

Design Thinking as a Solution

Design thinking is an approach everybody can use, to find a proper response with new alternatives and ideas we need (Brown, 2009) to create new values. Because design thinking is promising, some business leaders gazing hopefully towards design thinking as the next management “wonder drug” (Mootee, 2013, p.35). The hope of helping one’s own business to new heights with this seemingly playful approach is tempting. But the hype surrounding design thinking makes some people overlook the fact that this approach is not just hanging sticky notes to fancy walls in colorful spaces. Design thinking’s association with or applications in business is often way oversimplified (Mootee, 2013, p.54) and that can raise false hopes. Business leaders must understand the context before designing and implementing any change program (Mootee, 2013, p.124) and this is an important part of design thinking.

Essential parts of Design Thinking in E.62 design by Mindshake

To learn design thinking properly it is useful to participate in a design thinking workshop as I did during my design thinking class at Laurea University. Katja Tschimmel, who is a design thinking coach taught us various models and tools, which we were able to put into practice together in groups. Using the methods with divergent and convergent phases was important because a big part of design thinking is design doing (Mootee, 2013, p.80). It is a process where you learn in collaboration with the others and like Katja Tschimmel said you copy and adapt and adaption is necessary in times of change.

Katja Tschimmels Design Thinking class

My Experience with Design Thinking

As a designer who has been working in this field for almost 4 years, design thinking is not something new. I know the advantages of including customers in the process or methods like prototyping. I didn’t expect to hear much new, but as a designer, you still can have eye-opening moments while learning about design thinking. The course broadened my perspective, reminded me of things that had already faded into my subconscious and sharpened my terminology and methodology.

A Valuable Practice

Design thinking is far from a magical cure-all (Mootee, 2013, p.35), but a valuable practice to sense change, to find opposing ideas and constraints who lead to new solutions (Brown, 2009, 4:00)redefined values up to new business models. It is an approach that can replace outdated practices and theories to face today’s challenges properly.

Author: Bento Orlando Haridas – September 2019

References

  • Mootee, I. 2013. Design Thinking for Strategic Innovation: What They Can’t Teach You at Business or Design School: Wiley.
  • Brown, T. 2008. Design Thinking: Thinking like a designer can transform the way you develop products, services, processes – and even strategy.: Harvard Business Review
  • Tim Brown. 2009. Design Thinking: TED Talk. https://www.youtube.com/watch?time_continue=3&v=J0ZbVAQ8bWI

Going Holistic

Digitalist Design Forum 2017
Tennispalatsi, Helsinki 16.11.2017

An event for designers, producers and buyers to increase insights of design thinking and brand experiences

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I attended the event with high hopes to get insights of design and holistic customer experiences. I have to admit I was a little bit disappointed when most of the talks focused on branding. I decided to make the most of the day and learn everything I could on branding, a somewhat unfamiliar topic to me.

For starters we learned that Finland has a huge potential on being a design superpower but has failed terribly in using its potential. Petteri Kolinen (CEO, Design Forum Finland) and Ville Tolvanen (CEO, Digitalist Group) pointed out that there is a lack of a holistic view in finnish design and too much focus on the outcome or product. The lack of a holistic ensemble and an identity results in incoherent results.

 

The trick is to pull everything together
– Andreas Rosenlew

 

Andreas Rosenlew (Executive brand advisor & Managing Partner, Grow Partners) carried out with the same theme reminding us that there are a lot of brand evangelists and service designers running around. Rosenlew pointed out that the trick to survive in the competition is to be able to pull everything together to form a valuable and cumulative process. A successful designer truly understands the process of value creation and the different dimensions of value for the customer, such as financial, functional, social and experimental aspects of value creation.

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Päivi Svens (Head of Marketing, Fazer Lifestyle goods) also pointed out the importance of values. Svens argued that when concentrating on value creation for the customer the customer sees the brand as more valuable which in turn increases commitment to the brand. Svens described a situation where the designing and branding was very fragmented in the Fazer Makeiset unit, a situation that led to mistakes when bringing new products to the market. The company took a huge effort in dissolving and rebuilding all the processes, reconstructing the tasks of employees and creating a coherent branding around the products. Svens said she had to learn a lot of new things on simplifying and making things visible but that effort paid off in the form of prizes and gaining trust and valuation within the company.

 

Simplify to Amplify
– Päivi Svens

 

Heidi Rantala (Co-owner, Chief Marketing Officer, Yepzon) had an important angle on branding from a growing business point of view. Her point was that it is not always the almighty brand that enables growth but growth that enables a brand to develop. Rantala pointed out that you need patience to build a brand and meanwhile you owe to the customers who invested in you and your company. Sometimes you need to make profit and grow first to enable an experience of a successful brand to customers.

Alexander Matt (Chief Marketing Officer, Fiskars Group) entertained us with a fictional clip of a graphic designer obsessed with the papyrus font in the Avatar movie logo https://www.youtube.com/watch?v=jVhlJNJopOQ and some heroic stories of well known brands such as Levi’s jeans and Adidas sneakers. The formula of a successful brand is that it is universal, holistic and aesthetic. It is consistent and it speaks the language of the customers.

Written by: Mira Grönlund

How to See Co-Creation of Value When Creating New Services

Review of a few related articles.

Written by Tiia-Marina and Juha

The 6th foundational proposition on service dominant logic is: “The customer is always a co-creator of value: There is no value until an offering is used – experience and perception are essential to value determination.” So the co-creation is a goal to reach. By achieving that you can highlight the customers view and clarify customer needs (Payne, Storbacka &Frow, 2008).

Grönroos and Ravald (2011) point out that customer as co-producer (participates in e.g. defining new service) differs from customer as co-creator of value. They argue that it is always the customer who creates the value for himself and that the supplier is more a value facilitator. Supplier becomes a co-creator of value if it can create value for itself at the same time with the customer. Michel, Brown and Gallan (2008) see also that companies cannot fulfill all the needs but only create value propositions for the consumer to choose from. The goal is to mobilize customers to take advantage of the offerings. One of the challenges for the future will be to create business models that successfully integrate the service provider’s processes with the customer’s process of value creation.

Continue reading

Book review: Fischer T., Gebauer H. and Fleisch E. (2012), Service Business Development: Strategies for Value Creation in Manufacturing Firms,

Cambridge University Press, UK

The book gives a comprehensive overview of the service business development in the business environment of capital goods and brings together years experience on how manufacturing companies can create value through services. It also discusses the challenges of how to generate revenue of the services itself (along with products) and what kind of strategies can be used in different stages and types of the manufacturing companies in global business.

1 Challenges and common questions

When developing services in manufacturing firms it is a change in value creation and leap from production minded one-off sales culture to long-term customer relationship building culture that creates value to customer in broader scale. Continue reading

Experiences from organizing the first German SDN Service Design Conference

by Melanie Wendland, Master Programme SID 2011
Conference Context
As Group Design Lead of Fjord’s Service Design Academy, I was involved in organizing the first German version of the Service Design Network conference. Together with Thomas Schönweitz, the leader of the German chapter, Nancy Birkhölzer, Group Director of the Service Design Academy, was co-chairing the event.My main responsibilities for the organization of the conference was contributing to the topic definition, paper review and acceptance process, communication with the invited speakers, sponsorship communication as well as contributing to the conference program with ideas and suggestions.The topic that was created together with Thomas Schönweitz and Birgit Mager was
Creating Value(s): Transforming Business, Society and Individual Behavior through Service Design.
The Idea behind this topic was to find cases and highlight practices that showcase how service design has not only created new and innovative service concepts but look at the underlying transformations that it has had on society at large but also on the individual and the service business itself. Continue reading