Uf China Workshop Nov2007 Amit Pande

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Information about Uf China Workshop Nov2007 Amit Pande

Published on November 19, 2007

Author: amitpande

Source: slideshare.net

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Distributed design innovation - talk at User Friendly 2007 Beijing, China

Amit Pande, Oracle Deepa Bachu, Intuit Nov 25, 2007 User Friendly 2007, Beijing, China Creating a culture of distributed design innovation

A few housekeeping notes Slides for this workshop will be available at http://www.slideshare.net/amitpande/ Blog for continuing discussions on this topic – http://distributedinnovation.wordpress.com You should each have a file folder which contains Slide handouts Workshop design exercise Additional reference material

Slides for this workshop will be available at http://www.slideshare.net/amitpande/

Blog for continuing discussions on this topic – http://distributedinnovation.wordpress.com

You should each have a file folder which contains

Slide handouts

Workshop design exercise

Additional reference material

Workshop schedule 10:15 - 11:00 am Session 3: Innovation framework: People, Process, Product 11:00 - 11:30 am Group exercise: Create a solution for an opportunity in your marketplace using the Innovation framework 11:30 am – 12:00 pm Analysis of group exercise – map and discuss solutions 12:00 – 12:30 pm Wrap-up and next steps 10:00 – 10:15- am BREAK 9:30 – 10:00 am Session 2: Implications, challenges of distributed design innovation 9:00 – 9:30 am Segment 1: Global trends and context of distributed design innovation 8:30 – 9:00 am Workshop overview and audience introductions

Workshop overview and format Work together to understand how to harness opportunities of distributed design innovation Specific focus o n Understanding distributed design innovation Tapping new market needs Emerging markets 3 segments in today’s workshop (About 1 hour each) Context of globalization and Distributed Design Innovation Understanding challenges of Distributed Design Innovation Developing a framework for Distributed Design Innovation Hands on exercise

Work together to understand how to harness opportunities of distributed design innovation

Specific focus o n

Understanding distributed design innovation

Tapping new market needs

Emerging markets

3 segments in today’s workshop (About 1 hour each)

Context of globalization and Distributed Design Innovation

Understanding challenges of Distributed Design Innovation

Developing a framework for Distributed Design Innovation

Hands on exercise

Introductions About us Who you are what you do Your specific interest in this workshop The o ne thing you seek to takeaway from today

About us

Who you are what you do

Your specific interest in this workshop

The o ne thing you seek to takeaway from today

Segment 1: Key global trends and context of Distributed Design Innovation

Emerging markets driving global economy Fortune magazine states that one-third of GM’s global auto profits come from China, even though it has only 12 percent of the Chinese market China and India remain fastest growing telecom markets for a while  

Fortune magazine states that one-third of GM’s global auto profits come from China, even though it has only 12 percent of the Chinese market

China and India remain fastest growing telecom markets for a while  

Technology creation getting more global R&D spending by Fortune 500 companies has increased significantly in emerging markets R&D spending goes beyond cost-based outsourcing – Focus on product design, product development and other value added activities … 24 Chinese firms made it to Fortune Global 500 in 2007, so did 6 Indian firms. Source: http://www.strategy-business.com/media/image/06405-ex_03.gif

R&D spending by Fortune 500 companies has increased significantly in emerging markets

R&D spending goes beyond cost-based outsourcing – Focus on product design, product development and other value added activities

… 24 Chinese firms made it to Fortune Global 500 in 2007, so did 6 Indian firms.

Technology footprint increasing in region 100 of the Fortune 500 companies have R&D facilities in India. Similar numbers have facilities in China In addition, many Asian tech companies growing exponentially

100 of the Fortune 500 companies have R&D facilities in India. Similar numbers have facilities in China

In addition, many Asian tech companies growing exponentially

Talent pool getting distributed By 2010, China and India combined will graduate 12 times the number of engineers, mathematicians, scientists and technicians as the US China and India have contributed the largest number of foreign students to North America for 7 years in a row

By 2010, China and India combined will graduate 12 times the number of engineers, mathematicians, scientists and technicians as the US

China and India have contributed the largest number of foreign students to North America for 7 years in a row

Specifically, design talent getting global Asia continues to rise as a strategic design hu b 10 schools now in Asia in top 50 global design schools After success of Japan, Korea, Singapore – China and India gradually creating design footprint Source: Business Week - http://images.businessweek.com/ss/07/10/1005_dschools/source/1.htm

Asia continues to rise as a strategic design hu b

10 schools now in Asia in top 50 global design schools

After success of Japan, Korea, Singapore – China and India gradually creating design footprint

Putting together these trends Technology consumption is getting global and fragmented Millions of new end users in emerging markets Strong demand for hardware, software and services New platforms and new business models. E.g.: Mobile payments Technology production is getting distributed and global Talent pool of thousands of technologists, scientists, designers spread across key international locations Competition and opportunities are both global and local Fortune 500 companies have captive centers in India, China Small and local startups are creating new niche segments

Technology consumption is getting global and fragmented

Millions of new end users in emerging markets

Strong demand for hardware, software and services

New platforms and new business models. E.g.: Mobile payments

Technology production is getting distributed and global

Talent pool of thousands of technologists, scientists, designers spread across key international locations

Competition and opportunities are both global and local

Fortune 500 companies have captive centers in India, China

Small and local startups are creating new niche segments

Within this complex landscape, some companies are using distributed design innovation as a key competitive strategy and creating new market opportunities… Some examples Nokia Babajob.com Apple What do these trends mean for us?

Within this complex landscape, some companies are using distributed design innovation as a key competitive strategy and creating new market opportunities…

Some examples

Nokia

Babajob.com

Apple

Nokia 200 million sales worldwide since its launch in 2003 More than iPod, RAZR, Chocolate, PS2 in numbers Highest uptake in emerging markets Dust proof with flashlight No color display

200 million sales worldwide since its launch in 2003

More than iPod, RAZR, Chocolate, PS2 in numbers

Highest uptake in emerging markets

Dust proof with flashlight

No color display

Babajob Connects India’s elites to the people who need jobs but lack the connections to find them Maids, cooks, chauffeurs, carpenters, other workers Job seekers advertise skills, employers advertise jobs and matches are made through social networks.

Connects India’s elites to the people who need jobs but lack the connections to find them

Maids, cooks, chauffeurs, carpenters, other workers

Job seekers advertise skills, employers advertise jobs and matches are made through social networks.

Apple Source: http://slideshare.net

What’s common in th ese 3 stories? Apple – Breakthrough User experience, Industrial Design and good marketing Babajob – Specific and local business model for unmet user needs Nokia – Unique value added features for developing markets In all these cases, distributed design innovation was a key differentiator for market success …

Apple – Breakthrough User experience, Industrial Design and good marketing

Babajob – Specific and local business model for unmet user needs

Nokia – Unique value added features for developing markets

In all these cases, distributed design innovation was a key differentiator for market success …

Segment 2: Understanding Distributed Design Innovation and its challenges

A reality check on design innovation Despite the outliers mentioned earlier, many Fortune 500 companies and local start-ups focus only on cost advantages (‘outsourcing’) Engineering and design talent in emerging economies often focused on global (US/Europe centric) end user needs However, as emerging markets drive global business, engineers and designers in China/India are beginning to focus on improvements, and new product innovation Emerging (BRIC) market consumers seek relevant products and services – but not enough exist. Millions of unmet user needs remain. Imagine the market potential of innovations such as Skype or Facebook or Google Phone for emerging markets!!

Despite the outliers mentioned earlier, many Fortune 500 companies and local start-ups focus only on cost advantages (‘outsourcing’)

Engineering and design talent in emerging economies often focused on global (US/Europe centric) end user needs

However, as emerging markets drive global business, engineers and designers in China/India are beginning to focus on improvements, and new product innovation

Emerging (BRIC) market consumers seek relevant products and services – but not enough exist. Millions of unmet user needs remain.

Imagine the market potential of innovations such as Skype or Facebook or Google Phone for emerging markets!!

Points to consider While innovation is easy in principle, it is difficult in practice Most companies are either 500 lb gorillas or small fishes – bound by size or available resources Global multi-sourcing not easy – designers, software engineers, product managers talent spread across locations Product development approaches and existing products in one location do not always work well in another End user needs are very complex and sophisticated – users in urban China or rural India have different needs/aspirations Dealing with different cultures, new end users, and working/thinking processes makes distributed design innovation difficult !!

While innovation is easy in principle, it is difficult in practice

Most companies are either 500 lb gorillas or small fishes – bound by size or available resources

Global multi-sourcing not easy – designers, software engineers, product managers talent spread across locations

Product development approaches and existing products in one location do not always work well in another

End user needs are very complex and sophisticated – users in urban China or rural India have different needs/aspirations

Dealing with different cultures, new end users, and working/thinking processes makes distributed design innovation difficult !!

However, distributed design innovation presents unique opportunities Rare opportunity to benefit from few untapped global markets All necessary conditions for the ‘Perfect Storm’ Large base of designers and technologi sts Dynamic and rapidly growing local markets till 2030 Presence of large companies, consultancies, free wheeling talent However .. Above Ingredients in themselves not sufficient Distributed innovation is fraught with risks and pitfalls Need proven and simple structures and methods to implement distributed design innovation in your organizations

Rare opportunity to benefit from few untapped global markets

All necessary conditions for the ‘Perfect Storm’

Large base of designers and technologi sts

Dynamic and rapidly growing local markets till 2030

Presence of large companies, consultancies, free wheeling talent

However ..

Above Ingredients in themselves not sufficient

Distributed innovation is fraught with risks and pitfalls

Need proven and simple structures and methods to implement distributed design innovation in your organizations

Audience feedback on your main obstacles to distributed design innovation Share stories in pairs Some sample innovation killers People did not see it coming Executive management tunnel visioning Product was commoditized, undifferentiated Did not understand the market or real consumer needs Product was before it’s time Product was a solution in search of a problem Customer need was not clearly understood Group brainstorming exercise

Audience feedback on your main obstacles to distributed design innovation

Share stories in pairs

Some sample innovation killers

People did not see it coming

Executive management tunnel visioning

Product was commoditized, undifferentiated

Did not understand the market or real consumer needs

Product was before it’s time

Product was a solution in search of a problem

Customer need was not clearly understood

Segment 3: Developing a framework for Distributed Design Innovation

Framework for Distributed Design Innovation People Process Product I Innovation Framework

Framework for Distributed Design Innovation People Process Product I Innovation Framework

Framework for Distributed Design Innovation: People People are the foundational basis of success in Distributed Design Innovation activities What to look for when hiring a distributed design team Leverage global pool of talent through local ecosystems Few core skills - creative engineers, tech savvy designers, thought leaders Well rounded, passionate, pro-active individuals Both out-of-box and in-the-box thinking Motivated, engaged, who will fit socially in your organization Individuals who want to understand the problem they’re solving Diverse backgrounds and cultures, interests and experience Those who savor surprises, emergence, and flexibility I

People are the foundational basis of success in Distributed Design Innovation activities

What to look for when hiring a distributed design team

Leverage global pool of talent through local ecosystems

Few core skills - creative engineers, tech savvy designers, thought leaders

Well rounded, passionate, pro-active individuals

Both out-of-box and in-the-box thinking

Motivated, engaged, who will fit socially in your organization

Individuals who want to understand the problem they’re solving

Diverse backgrounds and cultures, interests and experience

Those who savor surprises, emergence, and flexibility

Framework for Distributed Design Innovation: People How to engage and retain people in emerging markets Treat people as peers, not resources Build trust, keep reinforcing trust Balance face to face and virtual team work Reward people meaningfully Research shows that after 1 year, performance starts dipping Consider job rotation within innovation roles Consider moving staff across offices Dedicate someone to care & nurturing of virtual team Invest in engaging and inspiring workplaces I

How to engage and retain people in emerging markets

Treat people as peers, not resources

Build trust, keep reinforcing trust

Balance face to face and virtual team work

Reward people meaningfully

Research shows that after 1 year, performance starts dipping

Consider job rotation within innovation roles

Consider moving staff across offices

Dedicate someone to care & nurturing of virtual team

Invest in engaging and inspiring workplaces

Framework for Distributed Design Innovation: People Key roles within innovation – Your team should have a mix of skills Understand problems worth solving for your business Observe and absorb customer requirements for new products Feed forward and feed back with customers in the field Generate ideas that solve the problem Brainstorm and create multiple ideas Bring concepts from related worlds and competitors Build on the ideas Experiment with technologies and platforms Storyboard to make ideas tangible Realizing the ideas Push through budget constraints and politics Collaborate with other teams, customers and partners So, what are these people called? What do they look like? I

Key roles within innovation – Your team should have a mix of skills

Understand problems worth solving for your business

Observe and absorb customer requirements for new products

Feed forward and feed back with customers in the field

Generate ideas that solve the problem

Brainstorm and create multiple ideas

Bring concepts from related worlds and competitors

Build on the ideas

Experiment with technologies and platforms

Storyboard to make ideas tangible

Realizing the ideas

Push through budget constraints and politics

Collaborate with other teams, customers and partners

So, what are these people called? What do they look like?

Framework for Distributed Design Innovation People Process Product I Innovation Framework

Framework for Distributed Design Innovation: Process Great ideas are the fountainhead of great products… Create an environment for creative ideas Encourage constructive dialogues and conflicts Emphasize brainstorming and experimentation Use triads – Design, Technology, Strategy Focus on User Centered Design and Innovation I

Great ideas are the fountainhead of great products…

Create an environment for creative ideas

Encourage constructive dialogues and conflicts

Emphasize brainstorming and experimentation

Use triads – Design, Technology, Strategy

Focus on User Centered Design and Innovation

Framework for Distributed Design Innovation: Process User Centered Design is the cornerstone of any innovation activity Understanding user needs th rough in context participant observation, ethnographic field visits, in lab sessions Focus on early sketching, wireframes, quick prototypes Iterate with users several times – measure and track issues Focus on both Design and Usability aspects Focus on often-ign ored aspects of the product – login screens, configurations and settings, button text, error messages I

User Centered Design is the cornerstone of any innovation activity

Understanding user needs th rough in context participant observation, ethnographic field visits, in lab sessions

Focus on early sketching, wireframes, quick prototypes

Iterate with users several times – measure and track issues

Focus on both Design and Usability aspects

Focus on often-ign ored aspects of the product – login screens, configurations and settings, button text, error messages

Framework for Distributed Design Innovation: Process But ideas are nothing without execution… Organize your multi-location teams based on competency and fit Don’t do dead and lengthy documents Use lightweight, flexible technology within your team Wikis, RSS feeds, light project management and reporting Technology should be persistent Keep your tasks small and your timeline smaller Meetings can be wasteful - respect alone time Create a process so people know where they are Regular check ins I

But ideas are nothing without execution…

Organize your multi-location teams based on competency and fit

Don’t do dead and lengthy documents

Use lightweight, flexible technology within your team

Wikis, RSS feeds, light project management and reporting

Technology should be persistent

Keep your tasks small and your timeline smaller

Meetings can be wasteful - respect alone time

Create a process so people know where they are

Regular check ins

Framework for Distributed Design Innovation People Process Product I Innovation Framework

Framework for Distributed Design Innovation: Product I What's the headline? What is the real unmet need you are solving? “ Pay your bills on time, every time” Ignore details early on Basecamp did not have charts, bar graphs Give customers just enough features to address 1 or 2 key needs E.g.: Ward Cunningham’s original Wiki Start with the User Interface first Focus on ignored usability aspects: admin screens, login screens, text simplicity If you optimize for everybody, it is great for nobody Housewives in Tokyo versus all the women in Japan

What's the headline? What is the real unmet need you are solving?

“ Pay your bills on time, every time”

Ignore details early on

Basecamp did not have charts, bar graphs

Give customers just enough features to address 1 or 2 key needs

E.g.: Ward Cunningham’s original Wiki

Start with the User Interface first

Focus on ignored usability aspects: admin screens, login screens, text simplicity

If you optimize for everybody, it is great for nobody

Housewives in Tokyo versus all the women in Japan

Framework for Distributed Design Innovation: Product Provide open forums to your customers Consider new approaches – ‘Cloud computing’ Encourage experimentation ala Google Labs Sign up early adopters ala the gaming industry Get product out into the field and get quick learnings Iterate till you get it right! Monetization can come later Be open to changing your business model E.g. of Flickr began as a game called the Game Neverending I

Provide open forums to your customers

Consider new approaches – ‘Cloud computing’

Encourage experimentation ala Google Labs

Sign up early adopters ala the gaming industry

Get product out into the field and get quick learnings

Iterate till you get it right!

Monetization can come later

Be open to changing your business model

E.g. of Flickr began as a game called the Game Neverending

Group exercise: Lets put these ideas to work!

Distributed design innovation exercise DESIGN BRIEF You have to solve the problem of “getting bills paid on time” for your local market Exercise details are in your worksheet Select the people, follow a process, create a product People – who would you choose within constraints. Select from 12 people profiles. Process – which design processes would you choose . Select among several design processes. Product – what would you finally build, how would you phase it out

DESIGN BRIEF

You have to solve the problem of “getting bills paid on time” for your local market

Exercise details are in your worksheet

Select the people, follow a process, create a product

People – who would you choose within constraints. Select from 12 people profiles.

Process – which design processes would you choose . Select among several design processes.

Product – what would you finally build, how would you phase it out

Discussion on exercise What was our solution What is your different solutions Discuss differences/overlap

What was our solution

What is your different solutions

Discuss differences/overlap

Conclusions: Putting it all together

How to stay in touch http://www.slideshare.net/amitpande/ or http://amitpande.com http://distributedinnovation.wordpress.com Email us [email_address] and [email_address] [email_address] Visit us at http://upabangalore.org

http://www.slideshare.net/amitpande/ or http://amitpande.com

http://distributedinnovation.wordpress.com

Email us

[email_address] and [email_address]

[email_address]

Visit us at http://upabangalore.org

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