The Value Design Brings to Business (WebVisions Portland 2016)

THE VALUE DESIGN
BRINGS TO BUSINESS
Nathan Shedroﬀ
California College of the Arts
nathan@nathan.com
@nathanshedroff
designmba.org

NATHAN SHEDROFF nathan.com @nathanshedroff

MAKE IT SO
Interaction Design Lessons from Science Fiction
by NATHAN SHEDROFF & CHRISTOPHER NOESSEL
foreword by Bruce Sterling
Many designers enjoy the interfaces seen in science fiction films
and television shows. Freed from the rigorous constraints of designing
for real users, sci-fi production designers develop blue-sky interfaces
that are inspiring, humorous, and even instructive. By carefully studying
these “outsider” user interfaces, designers can derive lessons that make
their real-world designs more cutting edge and successful.
“Designers who love science fiction will go bananas over Shedroff and Noessel’s delightful and
informative book on how interaction design in sci-fi movies informs interaction design in the real
world.... You will find it as useful as any design textbook, but a whole lot more fun.”
ALAN COOPER
“Father of Visual Basic” and author of The Inmates Are Running the Asylum
“Part futurist treatise, part design manual, and part cultural analysis, Make It So is a fascinating
investigation of an often-overlooked topic: how sci-fi influences the development of tomorrow’s
machine interfaces.”
ANNALEE NEWITZ
Editor, io9 blog
“Shedroff and Noessel have created one of the most thorough and insightful studies ever made
of this domain.”
MARK COLERAN
Visual designer of interfaces for movies (credits include The Bourne Identity, The Island, and Lara Croft: Tomb Raider)
“Every geek’s wet dream: a science fiction and interface design book rolled into one.”
MARIA GIUDICE
CEO and Founder, Hot Studio
www.rosenfeldmedia.com
MORE ON MAKE IT SO
www.rosenfeldmedia.com/books/science-fiction-interface/
MAKEITSObyNATHANSHEDROFF&CHRISTOPHERNOESSEL
Experience Design 1.1
a manifesto for the design of experiences
by Nathan Shedroff
product taxonomies 16
user behavior 116
100 years 22
information 42
takeaways 28
data 36
knowledge 48
subjectivity 78
consistency 96
navigation 84
user behavior 116
experiences 4
experience taxonomies 10
100 years 22
wisdom 54
information 42
takeaways 28
data 36
knowledge 48
subjectivity 78
consistency 96
navigation 84
Design Strategy in Action
Edited by Nathan Shedroff
A publication from the MBA in Design Strategy program
2011
2008 Edition
Dictionary of
Sustainable Management

MBA IN DESIGN STRATEGY
MBA IN STRATEGIC FORESIGHT

VALUE

$ £ ¤ ¥
Photo: epsos (Flickr)

$ £ ¤ ¥
function
Photo: bengt-re (Flickr)

function
CLV = GC • - M •∑
i = 0
n
(1 + d) i
r i
∑
i = 1
n
(1 + d) i - 0.5
r i - 1
GC = gross contribution per customer
M = (relevant) retention costs per customer per year
n = horizon (in years)
r = yearly retention rate
d = yearly discount rate.
(Lifetime Customer Value)
Photo: southernfoodwaysalliance (Flickr)

(V/S)b = Enterprise Value / Sales ratio of the firm with the benefit of the brand name 
(V/S)g = Enterprise Value / Sales ratio of the firm with the generic product
Let's use as an example branded cereals maker like Kellogg (K) against a generic provider like Ralcorp (RAH).
Value of Kellogg brand name = (1.78 - 1.32)(13846) = $6,369 Million 
Thus, (6369/24200) or 26% of the value of the company is derived from brand equity.
{ (V/S)b - (V/S)g}* Sales
$ £ ¤ ¥
function
(BRAND)

meaning
identity
emotion
price
function
Photo: mynameisharsha (Flickr)


meaning
identity
emotion
price
function

meaning
identity
emotion
price
function
RELATIONSHIP

EXPERIENCE
meaning
identity
emotion
price
function

EXPERIENCE
meaning
identity
emotion
price
function
NEEDSOFFER
INTENT
user
customer
audience
participant
employee
citizen
company
NGO
agency
brand
family
friend
stranger
user
customer
audience
participant
employee
citizen
company
NGO
agency
brand
family
friend
stranger

Photo: 36081663@N00 (Flickr)

Juabar

meaning
identity
emotion
price
function
QUANTITATIVE QUALITATIVE

Photo: hypophyse (Flickr)

meaning
identity
emotion
price
function
QUANTITATIVE QUALITATIVE
+
+
+
+
= TOTAL VALUE

meaning
identity
emotion
price
function
“BOOK VALUE” “GOOD WILL”
+
+
+
+
= TOTAL VALUE

TOTAL VALUE
(PREMIUM VALUE)
FUNCTIONAL VALUE
+ FINANCIAL VALUE
+ EMOTIONAL VALUE
+ IDENTITY VALUE
+ MEANINGFUL VALUE
=
QUANTITATIVE
QUALITATIVE

TOTAL VALUE
FUNCTIONAL VALUE
+ FINANCIAL VALUE
+ EMOTIONAL VALUE
+ IDENTITY VALUE
+ MEANINGFUL VALUE
$1.1B =
Instagram

$1.1B
Instagram
TOTAL VALUE
FUNCTIONAL VALUE
+ FINANCIAL VALUE
+ EMOTIONAL VALUE
+ IDENTITY VALUE
+ MEANINGFUL VALUE
=
$86M

$1.1B
Instagram
TOTAL VALUE
FUNCTIONAL VALUE
+ FINANCIAL VALUE
+ EMOTIONAL VALUE
+ IDENTITY VALUE
+ MEANINGFUL VALUE
=
$86M
$1.01B

EXPERIENCE CREATES VALUE

THOSE COMPANIES
(AND PEOPLE) 
WHO FOCUS ON
TOTAL VALUE
CREATE MORE OF
IT, MORE OFTEN

THOSE COMPANIES
(AND PEOPLE) 
WHO FOCUS ON
PREMIUM VALUE
CREATE MORE OF
IT, MORE OFTEN

WE’RE ALL IN THE
RELATIONSHIP
BUSINESS 

RELATIONSHIPS
ARE STRATEGIC
Photo: yeahbouyee IFlickr)


EXPERIENCE IS
STRATEGIC

From: The Experience Economy, Pine and Gilmore
Commodity Product Service Experience
Price/Value/Loyalty
EXPERIENCE IS STRATEGIC

EXPERIENCE IS STRATEGIC
Commodity Product Service Event/
Environment
Experience
Price/Value/Loyalty

R
E
XPE I EN
EC
meaningful
identity
emotional
financial
functional
NEEDSOFFER
INTENT
RELATIONSHIP
BREADTH
Product
Service
Brand
Channel/Environment
(Space)
Promotion
TRIGGERS
Sight
Sound
Smell
Taste
Touch
Concepts
Name(s)
Symbols
Price
VALUE
Meaning
Status/Identity
Emotion/Lifestyle
Price
Function
INTENSITY
Reﬂex
Habit
Engagement
INTERACTION
Passive
Active
Interactive
DURATION
Initiation
Immersion
Conclusion
Continuation

WE NEED BETTER
TOOLS TO
UNDERSTAND
TOTAL VALUE

WE MUST COLLECT
MORE & NEW 
INFORMATION

Accomplishment
Beauty
Creation
Community
Duty
Enlightenment
Freedom
Harmony
Justice
Oneness
Redemption
Security
Truth
Validation
Wonder
15 CORE MEANINGS
Deﬁnitions: makingmeaning.org

QUALITATIVE RESEARCH
TECHNIQUES:
Interviews
Careful Surveys
Shadowing
Laddering
Games, etc.
Book: The Meaning of Things
by Mihaly Csikszentmihalyi

FREEDOM COMMUNITY

JUSTICE ONENESS

Flavor
Bright/
Saturated
Hard,
Artiﬁcial,
Natural
Curvaceous/
Smooth,
Solid,
Sharp/Pointed
Loud,
Simple/Clear,
Musical/Melodious,
Mechanical
Musky,
Bright,
Alcohol,
Forest/Plants
Meaty,
Salty
Accomplishment Triggers
SoundColor Materials Form Aroma

Flavor
Primary Hard Complex Loud Forest/Plants Sweet - Sugar
Community Triggers

Flavor
Muted/
Desaturated Plastic Porous Natural/Organic
Natural,
Floral
Salty
Harmony Triggers

WE NEED NEW
TOOLS TO DESIGN
RELATIONSHIPS
(EXPERIENCES)

Customer
Media-
Touchpoint
Time Indicator
Role1Role2Role3Role4
Waitress
Cook
Manager
+
–
Fail Line
Media-
Touchpoint
Media-
Touchpoint
Media-
Touchpoint
TableReservationOnline
00:00
15:00
00:00
02:30
03:30
07:00
08:00
09:00
15:00
35:00
35:30
37:00
38:30
41:00
50:00
50:30
01:15:00
01:17:00
ConfirmationbySMS
Enterrestaurant,shortwait
atreception
OrderAperetiv
Givenmenu
Aperetivcomeswithextras
Guestissurprised/deligted
Foodisserved
Correctdishserved
Guestissatisfiedagain
Wrongsidedish.
Guestcomplains
Waitressgreetsguestand
leadsthemtotable
Waitresstakesthefood
order
Foodordersentthroughto
kitchen
Messageanddishsentback
tokitchen
KellnerstreichteinenTeil
derRechnung
MealPrepared
Chefagitatedandother
mealspushedlateinorder
tore-doside-dish.
Communication
failureinkitchen
Correctside-dishprepared

EXPERIENCE
AFFECTS “STATE OF MIND”

STATE OF MIND (SOM) IS
WHAT YOU FEEL AND
THINKING AT ANY MOMENT

ResponseResponse
Response
Stimuli

State of Mind:
Memory
Emotions
Perceptual Bias
Behavioral Response
Mental Models
ResponseResponse
Response
Stimuli

State of Mind:
Memory
Emotions
Perceptual Bias
Behavioral Response
Mental Models
State of Mind:
Emotions
Behavioral Response
Mental Models
Stimuli:
Sights
Sounds
Smells
Tastes
Touch
Concepts
Symbols

State of Mind:
Memory
Emotions
Perceptual Bias
Behavioral Response
Mental Models
State of Mind:
Emotions
Behavioral Response
Mental Models
(Triggers)

Core Meanings
State of Mind:
Memory
Emotions
Perceptual Bias
Behavioral Response
Mental Models
State of Mind:
Emotions
Behavioral Response
Mental Models

INITIATION (EXPECTATIONS)
STATE OF MIND (CONTEXT):
TOUCHPOINT ECOSYSTEM: PRODUCT, SERVICE, EVENT, NAME, IDENTITY/SYMBOL
MEDIA: SOCIAL, ETC?
LOCATION
ENGAGEMENT
TIME > > >
ACTUAL
DESIRED
EXPECTED
PLANNED
INTENSITY
DESIRABLE>>><<<UNDESIRABLE
Trepidation
Anticipation
Boredom
Frustration
Anger
Hope
Relief
Frustration
Contempt

MEDIA: SOCIAL, ETC?
LOCATION
ENGAGEMENT
TIME > > >
ACTUAL
DESIRED
EXPECTED
PLANNED
INTENSITY
Accomplishment Wonder Creation Validation Trust

MEDIA: SOCIAL, ETC?
LOCATION
ENGAGEMENT
TIME > > >
ACTUAL
DESIRED
EXPECTED
PLANNED
INTENSITY
Accomplishment Wonder Creation Validation Trust
Feature Service ProductPromotion EventWebsite Feature

© SCANSION 2014Consumer Experience Waveline
Waveline
Opportunities Opportunity 1 Opportunity 2
Touchpoints
EXPLORATION SETUPPURCHASE
Lorem ipsum dolor sit amet, consec-
tetur adipiscing elit. Duis lacinia lacinia
mauris non faucibus. Cras sed mattis
lectus. Nunc ac ornare risus. Nulla
rutrum commodo odio, et vestibulum
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
tetur adipiscing elit. Duis lacinia lacin-
ia mauris non faucibus. Cras sed
mattis lectus. Nunc ac ornare risus.
Nulla rutrum commodo odio, et vestib-
ulum augue aliquet nec.
augue aliquet nec.
Lorem ipsum dolor sit amet, con-
sectetur adipiscing elit. Duis lacinia
lacinia mauris non faucibus. Cras
sed mattis lectus. Nunc ac ornare
risus. Nulla rutrum commodo odio,
et vestibulum augue aliquet nec.
et vestibulum augue aliquet nec.Lorem ipsum dolor sit amet, con-
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
augue aliquet nec.
Lorem ipsum dol
tetur adipiscing eli
ia mauris non fauc
mattis lectus. Nun
Nulla rutrum comm
ulum augue alique
Lorem ipsum dol
ia mauris non fauc
mattis lectus. Nun
Nulla rutrum comm
ulum augue alique
Lorem ipsum dol
mauris non faucib
lectus. Nunc ac or
rutrum commodo
augue aliquet nec
Confusion
Anxiety
INTENSITY
T I M E
2
1
2
1
Beauty
Wonder
Ideal Consumer
Experience Waveline
Customer Segment 1
Customer Segment 1
Customer Segment 1
Computer crashes
All the touchpoints
are important
Retail confusion
around products
Which computers
have integrative
features
Struggling to setup
WiFi
The excitement of
a new computer
Explaining the key
touchpoints during
exploration
PC Learning
Experience
Video
Getting diverse
opinions
Exploring the
touchpoints
PC Learning
Experience
Powerpoint

JOURNEY MAP vs WAVELINE
•Maps touchpoints
•Maps functions
•Design 4 touchpoints
•Design 4 relationships
•Maps experiences 
(“change in people”)
•Maps emotions,  
values & meaning
•Maps value  
(and, opportunities)
• Can map triggers
• Places opportunities  
in context & time

Corporate
Decision Drivers
Team
Decision
Drivers
Customer
Decision
Drivers
Competitors’
Decision Drivers
Strategic Focus
STRATEGIC MEANING ALIGNMENT

Corporate
Decision Drivers
Team
Decision
Drivers
Customer
Decision
Drivers
Competitors’
Decision Drivers
STRATEGIC MEANING ALIGNMENT
Community
Wonder
Accomplishment
Beauty
Accomplishment
Enlightenment
Community
Wonder
Security
Wonder
Accomplishment
Community
Accomplishment
Community
Wonder

BACKSTAGE:
MEDIA: SOCIAL, ETC?
LOCATION
EMOTIONS
TRIGGERS: VISUAL (COLOR, TYPE, LAYOUT, IMAGE, PATTERN), AUDIO, AROMA, TASTE, TOUCH, CONCEPT
MEMORY, BIAS, MENTAL MODELS
GOAL/VALUE
AGENT
ACTION/RESPONSE:
ENGAGEMENT CONCLUDE/REFLECT CONTINUATION (REPEAT)
TIME > > >
ROX
WAVELINE TEMPLATE
PROJECT:
TASK:
INTENSITY>>>
PLANNED
ACTUAL
PERSONA/ACTOR:
designmba.org/open-source-curricula
FREEDOM
CCA LEADING BY DESIGN
FELLOWS PROGRAM
www.cca.edu/fellowsprogram
EXPERIENCE WORKBOOK
OBSERVATIONS AND
OPPORTUNITIES IN
EXPERIENCE DESIGN
15
THE 6 DIMENSIONS OF EXPERIENCE:
There are 6 dimensions of every experience, whether these are natural or
man-made adn whether these are business-oriented to not. This workbook
will help you explore and analyze the experiences around you and aide
you in developing better experiences for customers.
SIGNIFICANCE
Meaning
Status/Identity
Emotions/Lifestyle
Price/Value
Function
DURATION (TIME)
Initiation
Immersion
Conclusion
Continuation
TRIGGERS
Sight
Sound
Smell
Taste
Touch
Concepts
Symbols
BREADTH
Prodcut
Service
Brand
Name
Channel/Environment
Promotion
Price
INTENSITY
Reflex
Habit
Engagement
INTERACTION
Static
Passive
Active
Interactive
For each of the dimensions above, observe your customers/users/audience
when and where they experience needs and current solutions.
EXPERIENCE OBSERVATION
INTENSITY
Is the experience...
REFLEX? HABIT? ENGAGEMENT?
If so, there is likely no design
opportunity.
If so, can this experience be
turned into an engagement
experience?
This is where the vast number
of opportunities lie.
DURATION (TIME)
Is the experience...
REFLEX? HABIT? ENGAGEMENT?
If so, there is likely no design
opportunity.
If so, can this experience be
turned into an engagement
experience?
This is where the vast number
of opportunities lie.
1 14
BUSINESS MODEL:
With these new elements of experience, are their threats to your gurrent
business model?
Are there new opportunities?
Flavor
Primary Hard Complex Loud Forest/Plants Sweet - Sugar
Community Triggers

WE NEED TO DO THE
WORK TO BRIDGE OUR
DIFFERENT WORLDS

BUSINESSPEOPLE ARE
EXTREMELY
CONFIDENT ABOUT
THINGS THAT AREN’T
TRUE

GROWTH IS EVERYTHING
FREE MARKETS ARE EFFICIENT
MARKETS OPTIMIZE EVERYTHING
“THE BUSINESS OF BUSINESS IS BUSINESS”
“CORPORATIONS ARE PEOPLE MY FRIEND”
THE FOUNDING FATHERS (USA) WERE PRO-BUSINESS

THE GPD MEASURES PROGRESS

RICH PEOPLE CREATE JOBS

THE NUMBERS TELL THE STORY

MARKETING & SALES ARE SIMILAR

BUSINESSES ARE MORE EFFICIENT THAN GOVERNMENTS

FOCUS ON MINIMAL VIABLE PRODUCT

COOPERATION IS FOR WUSSES

LEADERSHIP COMES FROM AUTHORITY
MYTHS OF BUSINESS

THE WORK SPEAKS FOR ITSELF
DESIGN IS FOCUSED ON CUSTOMERS
DESIGNERS CREATE CULTURE
BUSINESSPEOPLE ONLY CARE ABOUT THE NUMBERS
NUMBERS DON’T TELL THE STORY
YOU CAN PROTECT AN IDEA
DESIGNERS CREATE AND CONTROL THE EXPERIENCE
IT’S GOTTA LOOK NICE
THE BEST SOLUTION ALWAYS WINS
MYTHS OF DESIGN

WE ALSO NEED TO
HELP BUILD NEW
BUSINESS TOOLS

The Business Model Canvas
Cost
Structure
Key
Partners
Key
Resources
Channels
Key
Activities
Value
Proposition
Customer
Relationships
Customer
Segments
Revenue
Streams
Business Model Generation, Alexander Osterwalder
businessmodelgeneration.com

VALUE
IS MORE THAN
FINANCIAL

EVERYONE IS IN THE
RELATIONSHIP
BUSINESS

EVERYONE IS IN THE
EXPERIENCE
BUSINESS

QUALITATIVE
VS.
QUANTITATIVE

QUALITATIVE
AND
QUANTITATIVE

WE NEED NEW TOOLS
FOR RESEARCH,
DESIGN, & BUSINESS

THANK YOU
nathan@nathan.com
@nathanshedroff
designmba.org
MAKE IT SO
Interaction Design Lessons from Science Fiction
by NATHAN SHEDROFF & CHRISTOPHER NOESSEL
foreword by Bruce Sterling
Many designers enjoy the interfaces seen in science fiction films
and television shows. Freed from the rigorous constraints of designing
for real users, sci-fi production designers develop blue-sky interfaces
that are inspiring, humorous, and even instructive. By carefully studying
these “outsider” user interfaces, designers can derive lessons that make
their real-world designs more cutting edge and successful.
“Designers who love science fiction will go bananas over Shedroff and Noessel’s delightful and
informative book on how interaction design in sci-fi movies informs interaction design in the real
world.... You will find it as useful as any design textbook, but a whole lot more fun.”
ALAN COOPER
“Father of Visual Basic” and author of The Inmates Are Running the Asylum
“Part futurist treatise, part design manual, and part cultural analysis, Make It So is a fascinating
investigation of an often-overlooked topic: how sci-fi influences the development of tomorrow’s
machine interfaces.”
ANNALEE NEWITZ
Editor, io9 blog
“Shedroff and Noessel have created one of the most thorough and insightful studies ever made
of this domain.”
MARK COLERAN
Visual designer of interfaces for movies (credits include The Bourne Identity, The Island, and Lara Croft: Tomb Raider)
“Every geek’s wet dream: a science fiction and interface design book rolled into one.”
MARIA GIUDICE
CEO and Founder, Hot Studio
www.rosenfeldmedia.com
MORE ON MAKE IT SO
www.rosenfeldmedia.com/books/science-fiction-interface/
MAKEITSObyNATHANSHEDROFF&CHRISTOPHERNOESSEL
Experience Design 1.1
a manifesto for the design of experiences
by Nathan Shedroff
user behavior 116
100 years 22
information 42
takeaways 28
data 36
knowledge 48
subjectivity 78
consistency 96
navigation 84
Design Strategy in Action
Edited by Nathan Shedroff
A publication from the MBA in Design Strategy program
2011

The Value Design Brings to Business (WebVisions Portland 2016)

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