Creating Low-Code Loan Applications using the Trisotech Mortgage Feature Set
Design Thinking For Business Strategy
1. Date: January 25th, 2007
Harsh Jawharkar
University of Chicago –
Graduate School of Business
Design Thinking for Business Strategy
2. 2
January 2007
Background
Management Consultant – A.T. Kearney
Previously …
• IDEO – Service Innovation Human Factors
• HSBC – Consumer Insights Experience Modeling
• Sapient – User Experience Modeling
• IPM – Management Consulting
Interests –
• Service and product innovation models
• Business strategies driven by a design-thinking mindset
Harsh Jawharkar (GSB ’06) http://www.linkedin.com/in/harsh
3. 3
January 2007
Innovation … Buzzword, Fad, or Bellwether?
innovation
Main Entry: in·no·va·tion
Pronunciation: i-n-'vA-shn
Function: noun
1 : the introduction of something new
2 : a new idea, method, or device : NOVELTY
Thesaurus:
something (as a device) created for the first time
through the use of the imagination
-- see INVENTION
buzzword
Main Entry: buzz·word
Pronunciation: 'bz-wrd
Function: noun
1 : an important-sounding usually technical word or
phrase often of little meaning used chiefly to
impress laymen
2 : a voguish word or phrase -- called also buzz
phrase
Thesaurus:
stock phrases that have become nonsense through
endless repetition
-- see hokum, nonsense, bunk
Source: Merriam-Webster Online, thefreedictionary
Innovation is a process … not an approach
5. 5
January 2007
Innovation is catalyzed by an opportunity to close the gap
Left Brain
Sequential
Rational
Analytical
Objective
Looks at parts
Right Brain
Intuitive
Holistic
Synthesizing
Subjective
Looks at wholes
Skillsets
• Linear
• Data driven
• Outcome oriented
• Focused on the ‘end’
Skillsets
• Empathic
• Observation driven
• Experience oriented
• Focused on the ‘journey’
OPPORTUNITY
6. 6
January 2007
Design thinking is an attitude, an approach – a mindset
Inside Out – Traditional Mindset Outside In – Design Mindset
Consumers
Front-line Personnel
Operations
Sales Marketing
Customer Service
C – Level
Consumers
Front-line Personnel
Operations
Sales Marketing
Customer Service
C – Level
A design mindset is critical to successfully solving or creating
7. 7
January 2007
Design firms currently occupy a less demanding space on the value
chain, thereby decreasing their leverage in corporate boardrooms
Value
Stimuli Ideate Conceptualize Validate Operationalize
• Stimuli derived
from:
• Existing
business
offerings
• Perceived
demand for
offerings
• Market dynamics
• Competitive
forces
• Ideation requires:
• Suspension of
disbelief
• Ability to cross-
pollinate
• Faith in
disruptive
technologies
• Conceptualization
requires:
• Observation
Empathy
• Identifying
heuristics
• Experiential
modeling
• Visualizing a
story or
scenarios
• Validation requires:
• Prototyping the
offerings
• Metrics and
measurability
• Assessment of
capabilities and
competitive
forces
• Operationlization
requires:
• A data driven
approach
• Tactical and
organizational
mindset
• Attitudes geared
towards
measurable
outcomes
Design Firms
Management Consulting Firms
People
$$$
Change
Management
8. 8
January 2007
Design firms are attempting to develop operational capabilities
IDEO
Design Focus
Business Focus
Source: Jess McMullin, bplusd.org
McKinsey
A.T. Kearney
BCG
Bain
Booz Allen
Monitor
Strategos
Mercer
frog
ZIBA Continuum
Cheskin
Method
Smart Design Jump
Herbst Lazar Bell
Astro
Lunar
Sapient
razorfish
Organic
Agency.com
Fitch
Desired Skill-set
and
Positioning
SonicRim
11. 11
January 2007
Elements of design thinking
Observation
Empathy
Ideation
Conceptualization (Storytelling, Modeling)
Prototyping
Being T-Shaped
12. 12
January 2007
Observation
Ethnographic Techniques
• Ethnography
Observing people in their
natural environments
• Behavioral Mapping
Photographing people within
a space, such as a hospital
waiting room, over two or
three days.
• Consumer Journey
Keeping track of all the
interactions a consumer has
with a product, service, or
space.
• Camera Journals
Asking consumers to keep
visual diaries of their
activities and impressions
relating to a product.
• Storytelling
Prompting people to tell
personal stories about their
consumer experiences.
13. 13
January 2007
Empathy
1. Moderately protected
2. Easily accessible
3. Staging area for major objects
1 2 3
Simulated - this is not a test participant's desk
14. 14
January 2007
Ideation
Brainstorming
• Defer judgment
• Build on the ideas
of others
• Encourage wild
ideas
• Go for quantity.
100 ideas in 60
minutes
• Be visual
• Stay focused
• One conversation
15. 15
January 2007
Conceptualization (Building a Behavioral Model)
Deposit
Checks
Review
Statements
Pay Bills
Transfer
Funds
Shop for
Deposit
Products
Shop for
Credit
Cards
Shop for
Loans
LoC's
Apply for
Deposit
Products
Apply for
Credit
Cards
Apply for
Loans
LoC's
Shop for
Service
products
Apply for
Service
products
HIGH
Deposit
Checks
Review
Statements
Pay Bills
Transfer
Funds
Shop for
Deposit
Products
Shop for
Credit Cards
Shop for
Loans
LoC's
Apply for
Deposit
Products
Apply for
Credit Cards Apply for
Loans
LoC's
Shop for
Service
products
Apply for
Service
products
RETAIL
The Bridge
Entrepreneurs are credit hungry and
this is the point of reference they
seek in terms of business legitimacy
and sustainability.
Sometimes Online Often Offline Mostly Offline Almost Always Offline
Need to transform into
online conducive activities
COMMERCIAL
LOW
Time to Make
Decisions
Need to Validate
Decision
The Need for :
Need to Protect Privacy
(Security)
Level of Complexity
Paperwork
Clear Path Choices
Simple Presentation
Usable Experience
Entrepreneurs
inherit behaviors
from their
Personal Banking
experiences
ENVIRONMENTS
Checking
Savings
Credit Card
Line of Credit
Loan
Insurance
Retirement
Employee Benefit
Low Touch High Touch
Commodity Differentiated
Fast Decision Slow Decision
CORE
PRODUCT
BUNDLE GROWTH
PRODUCT
BUNDLE
Price Parity Negotiable
Infancy Adolescence Maturity
16. 16
January 2007
Prototyping (Test and Validate)
OR
But which way is up ? Is that a button or not?
0, 1, 2, 5, 6, 8, 9 - all digits look identical upside down
Most people were unable to identify
how to hold the device.
17. 17
January 2007
Being T-Shaped
Source: Creative Generalist blog, Steve Hardy
Thinking Linking Doing
Observing
Empathizing
Divergent thinking
Brainstorming
Matchmaking
Cross-pollinating
Synthesizing
Facilitating
Executing
Implementing
Specializing
18. 18
January 2007
Design-thinking Frameworks
USERS
ACTIVITIES
are goal directed sets
of actions-things
which people want to
accomplish
OBJECTS
are building blocks of
the environment, key
elements sometimes
put to complex or
unintended uses,
changing their
function, meaning and
context
ENVIRONMENTS
include the entire
arena where
activities take
place
INTERACTIONS
are between a
person and someone
or something else,
and are the building
blocks of activities
Source: 1. User Insight Tool, Vijay Kumar
2. Ethnography in the field of design, Christina Wasson
ALTERNATIVES:
POEMS –
• People
• Objects
• Environments
• Messages
• Services
Experiential Framework1:
• Physical (e.g. small
vs. big)
• Cognitive (e.g.
understandable vs.
confusing)
• Social (e.g. informal
vs. formal)
• Cultural (e.g.
acceptable vs.
problematic, or
shared vs. conflict)
• Emotional (e.g. bored
vs. engaged, or
anxious vs. calm)
19. 19
January 2007
Anatomy of a design firm
About IDEO
• Pronounced “Eye-dee-oh”
• 500 designers
• HQ in Palo Alto
• Offices in San Francisco,
Chicago, Boston, London,
Munich, and Shanghai
• CEO – Tim Brown
• Cofounders – David Kelley
(Stanford) and Bill Moggridge
• Notable concepts –
– The first mouse
– Palm V
– Handspring Treo
23. 23
January 2007
Innovation requires going beyond the realm of ‘pushing’ products
Products
(Attributes)
Experiences
(Consequences)
Lifestyles
(Values)
Wal-mart
X Bank
X Grocery
Store
The Gap
Trader Joe’s
Target
JetBlue
Commerce
Bank
Apple
Whole Foods
Starbucks
TiVo
Blackberry
Harley
Davidson
Google
IKEA
Volkswagen
In ‘n Out
Burger
Zara
Toyota
Dunkin
Donuts
Samsung
24. 24
January 2007
Windows Mobile vs. the potential iPhone
Widgets
Email
Music/Video
Browser
Maps
Camera
SMS
FEATURE
A collection of features does not ensure successful innovation
26. 26
January 2007
Project Examples
Large Healthcare Insurer
• How do we engage our customers to take ownership of their health?
• Is there a mutually beneficial way to reduce healthcare costs?
Large consumer goods manufacturer – China strategy
• How do we re-launch our car care business in China?
• What options can we generate to create services based on our products?
Largest service employees union in North America
• How do we motivate our base?
• Can we reignite the grassroots movement?
HSBC Commercial Banking study
• Should we develop and launch this idea?
• How receptive (or not) will consumers be?
• What are the impacts to our brand?
27. 27
January 2007
Case in Point – The Gap
Background
• Opened in the summer of ’69 in San Francisco
• More than 3000 stores and $16 B in revenues
• Profit margins (6.5%) – half of industry average
• Same-store sales are 8% lower (Dec 2005-2006)
• Healthy Banana, sinking Navy, wider Gap
• Called Goldman Sachs to “explore all options”
How would you approach this?
• Traditional vs. Design Thinking
28. 28
January 2007
Traditional Approach
Revenues
• Pricing pressure
• Volumes
• Penetration
• Purchase frequency
• Transaction size
• Transaction value
• Product mix
• Customer mix segmentation
Costs
• Fixed real-estate footprint
• Size of stores
• Portfolio rationalization
(Gap, Banana, Old Navy)
• Variable labor costs
• Material costs and sourcing
strategies
• Generate hypotheses
• Define data requirements
• Gather and organize data
• Analyze data to identify key
issues
29. 29
January 2007
Design-thinking Approach
OBJECTS
ENVIRONMENTS
INTERACTIONS
USERS
ACTIVITIES
Environments, Interactions, Objects
• How do you plan a trip to The Gap?
• Is it scheduled or impulsive?
• What’s the trail between the desire and the
purchase?
– Is it direct or does it involve browsing?
– Should it be accelerated or indulged?
• How do users interact within the store?
– With the merchandise?
– With other shoppers, store personnel?
– With stimuli (light, sound, sense, smell)?
Users Activities
• Who wants to shop at The Gap?
– Why?
• When would you go to The Gap?
– Why?
• What would trigger a trip?
– How?
– Who else is involved?
– Who influences this desire? Why?
30. 30
January 2007
Resources
My Google Reader ‘Design’ Feed can be accessed from –
• http://harshlogic.blogspot.com
Comprised of the following blogs –
• Brand Autopsy
• Influx Insights
• Nussbaum On Design
• Putting People First
• Seth’s Blog
• CPH127
• Core 77