Comments on: Design thinking, Ideo and disruptive business model innovation http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/ A fresh approach to strategy Sat, 24 Jul 2010 18:07:57 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Paulina Taccone http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-698 Paulina Taccone Tue, 08 Jun 2010 16:01:41 +0000 http://blog.business-model-innovation.com/?p=510#comment-698 Hey, I just forwarded this to some friends, loving it! Hey, I just forwarded this to some friends, loving it!

]]> By: toby http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-518 toby Mon, 29 Mar 2010 12:49:38 +0000 http://blog.business-model-innovation.com/?p=510#comment-518 Good discussion around design thinking, and very much in agreement that it starts too far down the innovation process to come up with anything more than service/ product innovation, and even therein, incremental. Where I have found design massively useful is in the NATO world - where if you can rapidly sketch out an idea to bring it to life people respond much more emotionally than they would to concepts/ powerpoints. It is then a great tool for moving from a complex challenge to something people can get their arms around. It is interesting how well the industry, and particularly IDEO have self promoted themselves, certainly something disruptive there! Good discussion around design thinking, and very much in agreement that it starts too far down the innovation process to come up with anything more than service/ product innovation, and even therein, incremental. Where I have found design massively useful is in the NATO world – where if you can rapidly sketch out an idea to bring it to life people respond much more emotionally than they would to concepts/ powerpoints. It is then a great tool for moving from a complex challenge to something people can get their arms around. It is interesting how well the industry, and particularly IDEO have self promoted themselves, certainly something disruptive there!

]]> By: Patrick Stähler http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-485 Patrick Stähler Mon, 22 Mar 2010 16:58:28 +0000 http://blog.business-model-innovation.com/?p=510#comment-485 @Greg Thanks for your comments. In general I like tools like Design thinking, 5 forces but I am skeptical about how we use them. Even so useful tools like double-entry bookkeeping has be been abused by managers. Instead of using the "true and fair" principle managers and their accomplices like auditors or investment banks created special purpose vehicles with the sole purpose that the assets and liabilities will not show up in the books. So ever tool is only as good as the people that use them. The best way to sum it up: <strong>A fool with a tool is still a fool</strong>. @Greg Thanks for your comments. In general I like tools like Design thinking, 5 forces but I am skeptical about how we use them. Even so useful tools like double-entry bookkeeping has be been abused by managers. Instead of using the “true and fair” principle managers and their accomplices like auditors or investment banks created special purpose vehicles with the sole purpose that the assets and liabilities will not show up in the books.
So ever tool is only as good as the people that use them. The best way to sum it up: A fool with a tool is still a fool.

]]> By: Greg Krauska http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-463 Greg Krauska Fri, 19 Mar 2010 13:37:45 +0000 http://blog.business-model-innovation.com/?p=510#comment-463 Patrick, you have triggered a very spirited discussion - congrats! Part of what makes design thinking so appealing is its immediacy. We can marvel at its art museum beauty - and that is one form of utility. We can benefit from its functionality. And when it uniquely defines an original brand, it can build loyalty. Business model innovation, however, is redesign of behavior AND customer experience AND potentially product and service. So it goes far deeper - and often requires tough decisions about what to abandon as well as what to create. Culture change is a huge part of this. Stated (or asked) positively, given the change we need to create, what kind of leadership do we need? Do we have the people who can exhibit the kinds of behaviors we need to be successful? If we ignore the people side of it, we end up with a great business model, unimplemented, like so many other great ideas. Rather than a jihad about which is better, in my mind the question is, what is the best either can offer? When do we use either of them? How can they create new forms of value when they work together? If we get TOO stuck on method, then we become overly control-driven, which is the antithesis of innovation. Every company has a portfolio of new offerings, some incrementally better, some revolutionary. Both business model innovation and design thinking will have a place in the portfolio. Patrick, you have triggered a very spirited discussion – congrats!

Part of what makes design thinking so appealing is its immediacy. We can marvel at its art museum beauty – and that is one form of utility. We can benefit from its functionality. And when it uniquely defines an original brand, it can build loyalty.

Business model innovation, however, is redesign of behavior AND customer experience AND potentially product and service. So it goes far deeper – and often requires tough decisions about what to abandon as well as what to create. Culture change is a huge part of this. Stated (or asked) positively, given the change we need to create, what kind of leadership do we need? Do we have the people who can exhibit the kinds of behaviors we need to be successful? If we ignore the people side of it, we end up with a great business model, unimplemented, like so many other great ideas.

Rather than a jihad about which is better, in my mind the question is, what is the best either can offer? When do we use either of them? How can they create new forms of value when they work together?

If we get TOO stuck on method, then we become overly control-driven, which is the antithesis of innovation.

Every company has a portfolio of new offerings, some incrementally better, some revolutionary. Both business model innovation and design thinking will have a place in the portfolio.

]]> By: Patrick Stähler http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-369 Patrick Stähler Thu, 11 Mar 2010 17:26:38 +0000 http://blog.business-model-innovation.com/?p=510#comment-369 @Ralph As you have said in the end: innovation starts and ends with people. And this is the reason why I use also values and culture as a defining component of a business model. Particularly, in large corporations the existing culture is a barrier to innovate. See http://blog.business-model-innovation.com/2009/10/culture-and-the-business-model-we-are-humans/ @Ralph As you have said in the end: innovation starts and ends with people. And this is the reason why I use also values and culture as a defining component of a business model. Particularly, in large corporations the existing culture is a barrier to innovate. See http://blog.business-model-innovation.com/2009/10/culture-and-the-business-model-we-are-humans/

]]> By: Ralph-Christian Ohr http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-366 Ralph-Christian Ohr Thu, 11 Mar 2010 11:53:13 +0000 http://blog.business-model-innovation.com/?p=510#comment-366 Dear Patrick Stähler, thanks for pointing me to your interesting post. I agree with your view that challenging the hidden dominant industry logic is the most promising approach to address radical innovation. As a consequence, a new value proposition is mostly linked to a change in the business model and the value network of the innovator. Design thinking may unleash its potential in this process in order to redefine assumptions. This concurs quite well with thoughts from Roberto Verganti on "Design-Driven Innovation": http://www.designdriveninnovation.com/ I'm currently reading the book with great interest as it's reshaping my understanding of innovation. He also emphasizes that the IDEO approach usually leads to incremental innovation as basic underlying assumptions don't become challenged. Overall, I think, design thinking is for sure no magic tool to inherently solve every business problem. However, it can serve as a valuable approach for successfully addressing incremental improvements and more radical innovation - both types need to be balanced in a portfolio. Moreover, the human-centered principles make design thinking an interesting tool for a broad scope of application. I personally embrace the concept as it may help to shift from a technology-dominant to a more customer-centered view - at the end of the day innovation starts and ends with people and how they value the offer. Looking forward to keeping in touch. Regards from the eastern part of CH Ralph-Christian Ohr Dear Patrick Stähler,

thanks for pointing me to your interesting post.

I agree with your view that challenging the hidden dominant industry logic is the most promising approach to address radical innovation. As a consequence, a new value proposition is mostly linked to a change in the business model and the value network of the innovator. Design thinking may unleash its potential in this process in order to redefine assumptions.

This concurs quite well with thoughts from Roberto Verganti on “Design-Driven Innovation”: http://www.designdriveninnovation.com/
I’m currently reading the book with great interest as it’s reshaping my understanding of innovation.
He also emphasizes that the IDEO approach usually leads to incremental innovation as basic underlying assumptions don’t become challenged.

Overall, I think, design thinking is for sure no magic tool to inherently solve every business problem. However, it can serve as a valuable approach for successfully addressing incremental improvements and more radical innovation – both types need to be balanced in a portfolio.
Moreover, the human-centered principles make design thinking an interesting tool for a broad scope of application. I personally embrace the concept as it may help to shift from a technology-dominant to a more customer-centered view – at the end of the day innovation starts and ends with people and how they value the offer.

Looking forward to keeping in touch.

Regards from the eastern part of CH
Ralph-Christian Ohr

]]> By: Patrick Stähler http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-242 Patrick Stähler Wed, 27 Jan 2010 09:10:07 +0000 http://blog.business-model-innovation.com/?p=510#comment-242 @Georg You are right. They are excellent in marketing and getting sponsoring from Government and Universities. The links you posted show exactly why I am skeptical. The more Governments think this is the next big thing the more likely it is a fad. Governments are very good at spotting trendy stuff without long-term economic impact. And another good indicator is when large corporation jump on the bandwagon. The large incumbents want to be innovative by using new techniques but they don't understand that they will not find disruptive innovation this way since their resource allocation process (who gets which resources like management attention, money, etc. and who gets promoted) totally contradicts disruptive innovations. Disruptive innovation will come from outsiders not from the incumbents. And design thinking will not help! @Georg You are right. They are excellent in marketing and getting sponsoring from Government and Universities. The links you posted show exactly why I am skeptical. The more Governments think this is the next big thing the more likely it is a fad. Governments are very good at spotting trendy stuff without long-term economic impact. And another good indicator is when large corporation jump on the bandwagon. The large incumbents want to be innovative by using new techniques but they don’t understand that they will not find disruptive innovation this way since their resource allocation process (who gets which resources like management attention, money, etc. and who gets promoted) totally contradicts disruptive innovations. Disruptive innovation will come from outsiders not from the incumbents. And design thinking will not help!

]]> By: Georg http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-241 Georg Tue, 26 Jan 2010 18:37:41 +0000 http://blog.business-model-innovation.com/?p=510#comment-241 It looks like the "design thinking" community might not have the best/newest/most efficient/you name it tool to encourage successful innovation, but they are doing are great job in lobbying... have a look at http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?item_id=3054 and http://ec.europa.eu/enterprise/newsroom/cf/document.cfm?action=display&doc_id=2784&userservice_id=1&request.id=0 It looks like the “design thinking” community might not have the best/newest/most efficient/you name it tool to encourage successful innovation, but they are doing are great job in lobbying… have a look at

http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?item_id=3054

and

http://ec.europa.eu/enterprise/newsroom/cf/document.cfm?action=display&doc_id=2784&userservice_id=1&request.id=0

]]> By: Patrick Stähler http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-233 Patrick Stähler Mon, 11 Jan 2010 09:50:33 +0000 http://blog.business-model-innovation.com/?p=510#comment-233 @Christopher Thanks for your comment. As you wrote culture can be a differentiation factor also for start-ups. Think about Zappos that was acquired by Amazon exactly for their customer service culture. Check my post on culture and business models at http://blog.business-model-innovation.com/2009/10/culture-and-the-business-model-we-are-humans/ @Christopher
Thanks for your comment. As you wrote culture can be a differentiation factor also for start-ups. Think about Zappos that was acquired by Amazon exactly for their customer service culture. Check my post on culture and business models at http://blog.business-model-innovation.com/2009/10/culture-and-the-business-model-we-are-humans/

]]> By: Christopher Hastings http://blog.business-model-innovation.com/2009/11/design-thinking-ideo-and-disruptive-business-model-innovation/comment-page-1/#comment-232 Christopher Hastings Sun, 10 Jan 2010 21:59:21 +0000 http://blog.business-model-innovation.com/?p=510#comment-232 I think there is still value in leaving the value/leadership section in - even for startup companies. Even startups need to think about what kind of culture they want, who is representative of the culture they want and what values will continue to prevail as the company gets bigger. If entrepreneurs aren't thinking about the people side of the business early, they may lose the magic that got them started. I think there is still value in leaving the value/leadership section in – even for startup companies.

Even startups need to think about what kind of culture they want, who is representative of the culture they want and what values will continue to prevail as the company gets bigger. If entrepreneurs aren’t thinking about the people side of the business early, they may lose the magic that got them started.

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