The document provides an overview of an innovation project to develop a new financial product called "IKEA Credit" targeted at millennials. It describes user research that identified pains with existing financial products and an opportunity to reimagine financing as a subscription service. Prototypes were tested and indicated people preferred a credit subscription over existing loan types. The concept and business case were developed, showing potential to drive more customers and increase spending. Key performance indicators and an innovation practice framework are also summarized.

1. DESIGN
IN
LOVE
WITH
TECHNOLOGY
1508™
HOW TO
AVOID
INNOVATION
THEATRE
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2. CEO’S PAY
ATTENTION!
DIGITAL AND TECH CAPABILITIES
Kundeoplevelser
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​28%
​17%
​12%
INNOVATION
Kundeoplevelser
CUSTOMER EXPERIENCE
Kundeoplevelser
1508™

3. GO DENMARK!
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5. 1508™ MORGENBOOSTER #83
WHAT IS
INNOVATION?

6. CORPORATE CHALLENGES
Lack of management buy-in
Corporate Bureaucracy
Organisation in silos
IT-legacy
Risk Averse
Waterfall processes
Far from real customers
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HOW TO SUCCEED
WITH DIGITAL
TRANSFORMATION &
INNOVATION IN A
TANGIBLE WAY?
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IT ALL BOILS DOWN
TO AN INNOVATION
PRACTICE AND THE
WAY WE ORGANISE
AND BUILD STUFF
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9. PROOF BY DESIGN™
IMPLEMENTATION
BUSINESS
STRATEGY

10. UNDERSTANDING PEOPLE

11. HYPOTHESIS DRIVEN

12. PROTOTYPING

13. MADE COLLABORATIVE

14. PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTIONPROOF BY DESIGN™
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15. PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTION
Point of
Departure
DESK RESEARCH
Desk research
(market, data,
competitors and
trends)
Design/UX-audit
FIELD RESEARCH
Create customer
panel
Customer
interviews and
observations
Customer journey
map (as-is)
Stakeholder
interviews
DATA AND TECHNOLOGY
Data audit
POC on itegrations
STRATEGY
Value Proposition
Canvas
Business Model
Canvas
Define KPI’s
Create hypothesis
Chooce tech
platform
BRAND DIRECTION
Uncover Purpose,
Values, Goals etc.
(Workshop)
Define Brand
Purpose, Brand
Values and Brand
Pillards
Define Brand
Deliverables/Asset
s
Brand Platform
FEASIBILITY
Feasibility test
(business, legat,
it, organisation)
BUILD MVP
Agile/Iterative
process
Data modeling
Functionality
development
Interaction
development
Build setup
Continous
integration
Test and quality
assurance
Launch MVP
BRAND IMPLEMENTATION
Implementation
across
Touchpoints
(Photo Shoot)
Brand Book/Guide
OPTIMIZATION
A/B split test
Performance
optimisation
Surveys
Customer effort
score
Net promoter
score
Data analysis
MAINTENANCE
q SLA
q Bug handling
q Webmaster
services
q Update &
maintainance
q Brand management
IDEATION
Design sprints
Big idea:
contemplation and
ideation
Storyboard
Visual design
Content creation
Prototype (low
fi)
User test
SOLUTION
Prototype ( hi
fi)
Tone-of-voice and
content
principles
User epics/User
stories
Data architecture
User test
BRAND EXECUTION
(Create Brand Name)
Design Elements and
Principles (CVI)
Internal Brand
Validation
External Brand
Validation
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17. 1508™
IKANO BOARD
HEAD OF DIGITAL
”CAN WE MAKE
SOMETHING COOL
FOR IKEA?”
”I HAVE AN
IDEA!”
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19. 1508™
What’s the problem, really?
”I do not want to use my phone
to scan products, my phone
will run out of battery!”
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20. 1508™
”Deliver a value proposition
leveraging on an affordability
solution targeted to
millennials, to drive visits
to IKEA, improve purchase
conversion rates and increase
the shopping cart size.”
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21. PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTION
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FIELD
RESEARCH
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A MILLENNIAL SAYS:
”I want it to be easy and convenient.
Don’t make me work."
"I want to feel in control. Give me control."
"I want to understand it. Don’t make me think."
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24. 1508™
Pains
Gains
Jobs
Easy to
apply
Fast
application
processGet money
fast
Don’t need to
tell
everything
about my life
Seamless
customer
service
Good
digital
experience
I don’t
understand
interests
Very high
interest
rates
Low
flexibility
in
repayments
Lots of
plastic
cards
Hard to
keep track
of spending
Extra
fees and
hidden
costs
Paperwork
It’s hard
to get
out of
I regret
getting
into this
Find
money
Apply for
money
Keep
track of
finances
Spend/buy
/pay with
money
Repay
money
Cancellation
Manage
receipts
and
purchases
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KEY FINDINGS
People don’t understand interest
Users appreciate transparency
People don’t like to loan money and
most of them regret taking a loan
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Quick numbers on the
market for fast consumer
and payday loans
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500.000.000
375.000.000
250.000.000
125.000.000
0
2011 2012 2013 2014 2015
FAST CONSUMER LOANS TOTAL AMOUNT HAS GROWN
1180% OVER THE PAST 5 YEARS. (DENMARK).
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28. 1508™
The total amount of
interest and fees earned
have risen more than
1500% in the last 5 years
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It costs between 190 kr
and 375 kr to loan 1000 kr
for one month
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30. 1508™
Sounds like something
you wouldn’t want as a
consumer, but …
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31. 1508™
Trustpilot-scores (out of 10)
Kundfinans: 8.9
Express: 9.2
Vivus: 8.3
Ferratum: 8.6
Zaplo: 9.1
Onea: 8.3
Lendon: 8.7
Loanstep: 9.2
Ikano Bank: 6.0
Collector: 3.4
Resurs: 3.6
CONSUMERS ACTUALLY LOVE THEM
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WHY?
It’s easy to apply and you don’t have
to tell your life story.
You get the money fast. Like super fast.
Most providers have a seamless service
experience during your whole engagement.
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BUT STILL A LOT OF
PAINS TO SOLVE
Extremely high interest rates
– sometimes over 800% APR
Low flexibility in repayment options
High rate of regrets getting a loan
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LOW INTEREST
HIGH INTEREST
EASY TO
UNDERSTAND
HARD TO
UNDERSTAND
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35. 1508™
HYPOTHESIS
People would like a new,
easy to understand,
transparent and ethical
way to finance their IKEA
shopping experience.
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36. PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTION
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WE CREATED 3 PROTOTYPES AND
INTERVIEWED 150+ PEOPLE AT IKEA

40. 1508™
How many has thought of financing their
IKEA purchase? 16%
Which finance product would they choose?
A: Existing loan types 27%
B: Credit-subscription 73%
Fun fact:
89% of people who had thought of
financing their IKEA purchase chose
Credit-subscription.
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41. 1508™
We will offer credit on
subscription reimagining
financial products as a
service à la Spotify and
Netflix. Services that most
millennials know well.
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Real user opinions

45. 1508™
• Test 1: -25 (7,7,8,3)
• Test 2: 0 (7,7,6,8,9)
• Test 3: +25 (8,8,7,10)
NET PROMOTER SCORE (NPS)
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46. 1508™
Pain relievers
Gain creators
Products and services
Pains
Gains
Jobs
Easy to
apply
Fast
application
processGet money
fast
Don’t need to
tell everything
about my life
Seamless
customer
service
Good
digital
experience
I don’t
understand
interests
Very high
interest
rates
Low
flexibility in
repayments
Lots of
plastic
cards
Hard to keep
track of
spending
Extra fees
and hidden
costs
Paperwork
It’s hard to
get out of
I regret
getting into
this
Find money
Apply for
money
Keep track
of finances
Spend/buy
/pay with
money
Repay
money
Cancellation
Manage
receipts and
purchases
Paperless
application
process
Instant
money if
approved
Easy credit
scoring
Smooth
cardless
payments
Variabel
reward
system
Subscription
based
financeLow fixed
monthly
amount
All digital,
no cards
needed
Repayment
on your
terms
IKEA Credit
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47. 1508™
CUSTOMER VALUE PROPOSITION
IKEA credit is a transparent and easy
understandable financial service for
millennials. Credit for home furnishing on
demand, when you need it, where you need it.
All digital - no cards, no hassle.
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48. 1508™
RE-ENGAGE
Push new offers
Rewards
VAS (value added
services)
Increase
affordability
CHECKOUTSHOPBROWSEINSPIRATIONACKNOWLEDGE
Drive
footfall
Eliminate
economic
boundaries
Increase
shopping
cart
Easy
payments
FIT IN CUSTOMER
JOURNEY MAP
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49. 1508™
CHECKOUTSHOPBROWSEINSPIRATION
IKEA SE
Web Visits
90 000 000
IKEA
Store Visits
37 800 000
IKEA
Paying Customers
17 388 000
IKEA
Average Yearly Spend
EUR 103
42% 46% EUR 103
BUSINESS CASE
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50. PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTION
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51. 1508™
PRODUCT IS NOT YET
RELEASED, THEREFORE IT
HAS BEEN TAKEN OUT OF
THE PRESENTATION
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52. INNOVATION
PRACTICE
INNOVATION
MANAGEMENT
PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTION
KPI’s
PORTFOLIO ACCOUNTING GO – STOP - PIVOT
METRICS TO MEASURE SUCCESS CONTINUE PROJECT OR NOTSTRUCTURE INNOVATION INITIATIVES
CULTURE & MINDSETORGANISATIONFOCUS
INNOVATION
STRATEGY
ALIGN CORPORATE STRATEGY AND INNOVATION CREATE SPACE FOR CREATIVITYORGANIZE TO CONTINOUSLY INNOVATE
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53. 1508™ MORGENBOOSTER #83
PORTFOLIO
​
CORE
ADJACENT
RADICAL
PRODUCTS
MARKETS

54. 1508™ MORGENBOOSTER #83
KPI’s
ACCOUNTING
+ CUSTOMER EFFORT SCORE
FROM 3,5 TO 2,4
METRICS

55. PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTION
50K 200K 600K
INVESTMENT PRACTICE
GO – STOP - PIVOT
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56. 1508™ MORGENBOOSTER #83
FOCUS

57. 1508™ MORGENBOOSTER #83
ORGANISATION
INTERNAL
RESOURCES
LOCATION
GOVERNANCE
FOCUS
EXTERNAL
INSIDE OUTSIDE
PROJECT BOARD ADVISORY BOARD
RADICALINCREMENTAL

58. 1508™ MORGENBOOSTER #83
​ETIENNE YUAN
​HEAD OF DIGITAL
DEVELOPMENT, IKANO
CULTURE & MINDSET
​Be a pirate!

59. INNOVATION
PRACTICE
INNOVATION
MANAGEMENT
PROOF OF
PROBLEM
PROOF OF
CONCEPT
PROOF OF
SOLUTION
KPI’s
PORTFOLIO ACCOUNTING GO – STOP - PIVOT
METRICS TO MEASURE SUCCESS CONTINUE PROJECT OR NOTSTRUCTURE INNOVATION INITIATIVES
CULTURE & MINDSETORGANISATIONFOCUS
INNOVATION
STRATEGY
ALIGN CORPORATE STRATEGY AND INNOVATION CREATE SPACE FOR CREATIVITYORGANIZE TO CONTINOUSLY INNOVATE
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60. 1508™
​Thanks!​Oliver Vassard
​Client Innovation lead
ova@1508.dk
​Mikkel Jespersen
​Founding partner and CCO
​mje@1508.dk
​+45 2711 5080
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