The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model
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The evolution of technology in the past 10 years created a new ecosystem that enriched our ability to connect with the most important people in our life. This event reframed the perception of our daily human-device interaction that is becoming every day more personal and intimate and reprioritized our priorities and expectations as a customer. In this new landscape, a new approach is required to create and deliver relevant customer's value, and design thinking possesses the "ability" necessary to succeed. In this session, we will initially explore how the customer's mindset and expectations are changed and what are the implications of this new paradigm on the design and development process. We will then illustrate how design thinking can help to maximize the value generation and how to use the design mindset to deliver relevant experiences to the customers. In the last part, we will address some common mistakes and we provide some examples and guidelines to systematize design thinking inside an organization with the goal of establishing a design-driven business.
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The Evolution of Design Thinking: Shifting from a Product and Service to a Relationship Business Model
- 1. The Evolution of Design Thinking Shifting from a product and service to a relationship business model. Andrea Picchi www.andreapicchi.it @andreapicchi a
- 2. www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 3. www.andreapicchi.it - @andreapicchi Extract Commodities Make Goods Deliver Services Stage Experience Relevant NEEDS Irrelevant Differentiated COMPETITIVENESS Undifferentiated PRICING PremiumMarket Economic value evolved Source: Pine & Gilmore, The Experience Economy, 1999)The Evolution of Design Thinking n produced n extracted n delivered t spent
- 4. www.andreapicchi.it - @andreapicchi Why evolution of Design Thinking? The Evolution of Design Thinking
- 5. Design is a human-centered mindset www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 6. www.andreapicchi.it - @andreapicchi Designing is the practice of generating value through problem-solving The Evolution of Design Thinking
- 7. www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking April 9, 2012 san francisco, california
- 8. Facebook acquires Instagram www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 9. 85M book value 35M one week prior to acquisition www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 10. 1.1B total value www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 11. www.andreapicchi.it - @andreapicchi Why Facebook paid 1294 times Instagram’s value? The Evolution of Design Thinking
- 12. www.andreapicchi.it - @andreapicchi Value 5 types meaningful * identity emotional financial functional QUANTITATIVE QUALITATIVE + * This is governed by 15 core meanings: Accomplishment, Beauty, Community, Creation, Duty, Enlightenment, Freedom, Harmony, Justice, Oneness, Redemption, Security, Truth, Validation, Wonder. (Diller, Shedroff, and Rhea, 2008) The Evolution of Design Thinking
- 13. www.andreapicchi.it - @andreapicchi Value quantitative: identified by the question Does this do what I need? Functional Does this have a good cost/benefit ratio? Financial The Evolution of Design Thinking
- 14. Value qualitative: identified by the question How does this make me feel? Emotional Does this reflect me? Identity Does this fit into my world? Meaningful www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 15. Qualitative Value emotional identity meaningful Qual V >>> Quant V www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 16. Premium Value it’s an effective competitive advantage because it’s hard to copy www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 17. Premium Value intangible but real www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 18. Premium Value intangible but real www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 19. www.andreapicchi.it - @andreapicchi You are in the relationship business it is not a choice The Evolution of Design Thinking
- 20. www.andreapicchi.it - @andreapicchi Relationship humans evolved into social animals to survive. Humans develop relationships with brands as they do with other humans. Humans anthropomorphize any interactive-actor by default. www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 21. www.andreapicchi.it - @andreapicchi What is a relationship? The Evolution of Design Thinking
- 22. Relationship is a connection that exchanges value based on an experience www.andreapicchi.it - @andreapicchiThe Evolution of Design Thinking
- 23. www.andreapicchi.it - @andreapicchi What is an experience? The Evolution of Design Thinking
- 24. www.andreapicchi.it - @andreapicchi 1. stimulus 2. perception 3. interaction 4. evaluation Experience is generated by the human's mind The Evolution of Design Thinking
- 25. www.andreapicchi.it - @andreapicchi We can not design an experience we can only directly manipulate one component of the equation Continuous Innovation: Human-centered design
- 26. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship designers don’t directly control the relationship Value Perception EXPERIENCEDESIGN PROBLEM SOLUTION TRIGGER TRIGGER The Evolution of Design Thinking
- 27. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship qualitative value can be framed with a strategy statement [COMPANY NAME] exists to provide [CUSTOMER] with [KEY PROMISE]. In doing so, it provides [BENEFIT 1, … , BENEFIT N] to customers. Toward that end, it offers [VALUABLE EXPERIENCE 1, … , VALUABLE EXPERIENCE N]. Disney exists to provide families worldwide with ever-deepening wonder. In doing so, it provides solace, beauty, community to customers. Toward that end, it offers features film, theme parks and subdivisions. Designing AI-based relationships INTERVIEWS STATEMENT
- 28. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship quantitative value can be decomposed using the Kano model A relationship is a connection that: is designed to fulfill a need. is based on a valuable experience. is perceived slightly different by different humans. is dynamically developed over time. Designing AI-based relationships
- 29. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship different delivery logic Designing AI-based relationships Functional Emotional Engaging Usable Reliable Functional Emotional Engaging Usable Reliable Reflecting Identity Sharing Meanings
- 30. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship different delivery logic Designing AI-based relationships Functional Emotional Engaging Usable Reliable Functional Emotional Engaging Usable Reliable Reflecting Identity Sharing Meanings QUALITATIVE VALUE QUANTITATIVE VALUE
- 31. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Relationship different delivery logic Designing AI-based relationships Functional Emotional Engaging Usable Reliable Functional Emotional Engaging Usable Reliable Reflecting Identity Sharing Meanings
- 32. www.andreapicchi.it - @andreapicchi Relationship customer time vs corporate time A valuable relationship can only develop on customer time. www.andreapicchi.it - @andreapicchiDesigning AI-based Relationships
- 33. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Tool wave diagram to map the relationship EXCITEM EN T WONDER COMMUNITY JOY WONDER PLEASURE COMFORT Movie Visit Disneyland Movie Cruise Store TV Radio TIME INTENSITY Designing AI-based relationships
- 34. Design is problem solving; the problem to solve changes so did the practice. We have 5 type of values: functional, financial, emotional, identity, and meaningful. To exchange qualitative value we need to establish a relationship. A relationship is a connection that exchange value based on an experience. We cannot directly design an experience or directly control a relationship. We can investigate the qualitative value with interviews and other techniques. We can reframe our business model with a strategy statement. We can change the delivery strategy taking into account the qualitative value. We can visualize the relationship using a waveline designed on customer time. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi Summary Designing AI-based relationships
- 35. The Evolution of Design Thinking Shifting from a product and service to a relationship business model. Andrea Picchi www.andreapicchi.it @andreapicchi a