creativity, design thinking and how these have to do with innovation & entrepreneurship

Creativity Thinking,

Dr Ekaterina Khramkova, Russian Design Research Consultancy Lumiknows24 April 2009, International Center for Innovation and Entrepreneurship

Or the ability to connect to what is outside the box when you are inside it.

Creativity Thinking Today:

1. What is Creativity;

2. Why is it that important for Innovation Entrepreneurs;

3. Why this is equal to “Design Thinking”.

© 2009 Russian Design Research Consultancy Lumiknows 2

Kazimir Malevich, Black Square, c. 1915. State Russian Museum, St. Petersburg

Abstract painting:

An artistic revolutionof the 20th century.


Do you know

how the first abstract painting was created?


Piet Mondrian,Composition with Yellow, Blue, and Red, 1937-42. Tate Gallery, London.

Fernand Léger,The Railway Crossing, 1919. The Art Instituteof Chicago

Catherine de Zegher, Hendel Teicher(eds.). 3 X Abstraction. NY: The DrawingCenter & /New Haven: Yale UniversityPress. 2005.

Jackson Pollock,Full Fathom Five, 1947.Museum of ModernArt, New York City

Art clearlyimpliedexpression ofideasconcerningthe spiritual, theunconsciousand themind.


Do you know

how the firstabstract painting was created?

Wassily Kandinsky, Composition VII, 1913. The State Tretyakov Museum, Russia


Pioneer spirit of an artistic revolution, The Times, June 3, 2006

One evening in the summer of 1909, Wassily Kandinsky becameaware of the power of abstract art after he saw “indescribablebeauty with an inner glow” in a painting.

“I was startled momentarily, then quickly went up to thisenigmatic painting in which I could see nothing but shapes andcolours and the content of which was incomprehensible to me.”

The answer to the riddle came immediately: it was one of his ownpictures leaning upside down against the wall. But from then on, Kandinsky was bewitched by the idea that “subject matter wasdetrimental to my paintings”.


The Nine Dot Puzzle


…The puzzle only seems difficult because "we imagine a boundary around the edge of the dot array".

Prof. Daniel Kies


Is the point in the “boundary”?

http://www.flickr.com/photos/mllemathilde/1428593831/

The point is in the way of seeing.© 2009 Russian Design Research Consultancy Lumiknows 12

Western “seeing”: there is a boundary…

Aristotle wrote about Pythagoreans thatfor them emptiness serves to divide thingsand define their boundaries.


Thirty spokes coverage upon a single hub; It is on the hole in the centre that the use of the cart hinges.We make a vessel from a lump of clay; It is the empty space within the vessel that makes it float. Thus, while the visible has advantages, It is the invisible that makes it useful.

Lao-Tzu, Tao The Ching, 6th cent. B.C.

Eastern “seeing”: there is no boundary.


The concept of the

later turned intoNewtonian Spaceas a Container forthings.

“Emptiness” (= Nothing)


The concept of the

later transformedinto Einstein’s Relative Reality.

“Invisible” (= Something)


Something, Context

Two different modes of solving problems:


Nothing, Emptiness

• Focus on what is already known;• “Nothing” behind what is seen;• Limited possibilities.

• Shift of focus to the “Big Picture”;• There is “Something” behind it, even

if we don’t see this right now;• Abundance of possibilities.

How does it to do with the Innovation Entrepreneurship?


Red Oceans are all the industries inexistence today—the known marketspace. In the red oceans, industryboundaries are defined and accepted. As the market space gets crowded, prospects for profits and growth arereduced.

Blue oceans, in contrast, denote all theindustries not in existence today—theunknown market space. In blue oceans, competition is irrelevant because therules of the game are waiting to be set. Blue ocean is an analogy to describe thewider, deeper potential of market spacethat is not yet explored.

A conversation with W.Chan Kim and Renee Mauborgne. INSEAD, 2005.


Search for the market instead of in the market is a key to success in today’s Innovation Economy.


Red Ocean Strategy Blue Ocean Strategy


From New Product to New Market Development.


Blue Ocean StrategyRed Ocean Strategy

Assuming that structure and market boundaries exist only in managers’ minds, practitioners who hold this new view do not let existing market structures limit theirthinking. To them, extra demand is out there, largely untapped.

Kim, Chan, Blue Ocean Strategy.


http://www.flickr.com/photos/32194657@N06/3467932128/sizes/l/

In order to get to the future first, there is no need to excel competitors trying to get the same prize because the number of prizes may be the same as the number of runners.

G. Hamel & C. K. Prahalad, Competing For The Future.



The crux of theproblem is whereto look for these prizes...

http://www.flickr.com/photos/jwlphotography/508878373/


In people’s needs.


Not in narrow defined customer experience,

Where to look for “the prizes”?


Not in narrow defined customer experience,

But in total humanexperience.

Where to look for “the prizes”?

http://www.flickr.com/photos/dogfaceboy/1095640322/




From “Customer” to Total Human Experience…



From New Product to New Market Development…

Three business models of innovation | IBM CEO Global Study, 2008


Outperformers take on the industry model innovation

• 39% Collaboration imperative drives enterprise model innovation;

• 23% Revenue model innovators: nine out of ten are reconfiguring the product, service and value mix. Half are working on new pricing structures;

• 18% Industry model innovation: redefining their existing industries (73%), entering or creating entirely new industries (36%).



http://www.flickr.com/photos/tonyshi/3079681907/

BumpTop starts with a 3D view of a cubicle-like desk with vertical walls at the sides and back. Objects—pictures, documents, songs, sticky notes, program icons—can be moved freely aroundthe desktop or stuck up on the walls. BumpTop is a natural for a touchscreen, but it also workssatisfactorily with a mouse.


http://www.flickr.com/photos/artzyviv/2838577706/


Is your product ready to become part of her life experience?

http://www.flickr.com/photos/artzyviv/2838577706/


Do you reallyunderstand herneeds and values??

Statistics say no….


96% of all innovation attempts fail to meet financial goals (Institute of Design Strategy, USA, 2005)

Every year brings 30,000 of new products. About 90% of them fail despite thorough and highly expensive market research (Clayton Christensen et al, Marketing Malpractice: The Cause and The Cure / Harvard Business Review, Dec 2005)

8 out of 10 NPD projects fail (Product Development & Management Association, USA, 2004)

The main reason behind new product failure:

24% Inadequate market analysis (i.e. analysis of customer needs);

16% Product problems of defects;14% Lack of effective marketing effort;10% Higher costs than anticipated;9% Competitive strength and reaction;8% Poor timing of introduction;6% Technical or production problems;13% All other causes.


Robert Cooper, Winning At New Products

Management will increasingly have to be based on the assumption that neither technology nor end use is a foundation for management policy. They are limitations. The foundations have to be customer values and customer decisions on the distribution of their disposable income.

Peter Drucker, Management Challenges for the 21st century.© 2009 Russian Design Research Consultancy Lumiknows 41

http://www.flickr.com/photos/32194657@N06/3467932128/sizes/l/


‘What technical / organization / financial / manufacturing possibilities we possess’.

Shift in marketing strategies

Technology- Driven Strategy

‘What else does our customer want?/How can we empathize with him?’

Consumer-Driven Strategy


From Market Research to “Design Research”.

Shift in customer research approach

http://www.flickr.com/photos/seier/2400908319/ http://www.flickr.com/photos/lorenzodom/420366606/

Design research understands people and practices in context of their total human experience.

http://www.flickr.com/photos/frizztext/2786498308/


http://www.flickr.com/photos/25434820@N00/444530871/in/set-72157601913739362/

At the heart of this approach lies

Design Thinking –one of the best examples of “thinking in context”, “thinking outside the box”.


Design has evolvedfrom a narrowdiscipline dealingwith the form andfunction of productsinto a major newapproach todevelopingbusiness models.

Business Week


When people talk about innovationin this decade, they really mean design.

Bruce Nussbaum,Business Week


Design thinking, a way of thinking thatparallels other ways of thinking - like sciencethinking - but offers a way of approachingissues, problems and opportunities almostuniquely suited to innovation.

Design Thinking: Driving Innovation,Charles L. Owen, Distinguished Professor Emeritus, Institute of Design, Illinois Institute of Technology


…Companies have to focus on innovation tobe competitive. That driving need makesdesign thinking the hottest trend inbusiness culture today. If engineering, control, and technology were once the centraltenets of business culture, then anthropology, creativity, and an obsession with consumers' unmet needs will inform the future.

The Talent Hunt, BusinessWeek, 2006


Companies have a “targeted”intelligence to track issues that strategically important but lack an “open” process to recognize emerging patterns and issues that no one has yet identified as strategic.

Corporate Radar: Best-Practices Survey Results /SRI Consulting Business Intelligence –formerly Stanford Research Institute)


We need perceptualthinking, creative thinking and design thinking: none of these is part of our traditional system of logic and analysis.

Edward de Bono


Today perceptivenessis more important than analysis.

Peter Drucker

MBA programs which included design thinking in its curriculum

Stanford University;The University of California at Berkeley;The Rotman School of Management at University of Toronto;McDonough School of Business at Georgetown University;Darden School of Business at University of Virginia …


MBA programs which included design thinking in its curriculum

Deep consumer understanding, The ability to test product variations rapidly, New market strategy formulation


Redesign of business education

MBA students at INSEAD (Paris) + design students from the ArtCenter College of Design (Pasadena, California). Rotman School of Management has allied with the Ontario College of Arts and Design to launch a series of joint courses;The Illinois Institute of Technology’s Institute of Design launched a 9-month executive master’s degree program in design methods.




– By using sketching and diagramming techniques, the MBAs mappedcustomer experiences in ways that fundamentally reshaped theirstrategies and led to the creation of many new business models.

– A B-school class would have started with a focus on market size andused financial analysis to understand it. This D-school class began withconsumers and used ethnography, the latest management tool, tolearn about them.

– Business school students would have developed a single new product tosell. The D-schoolers aimed at creating a prototype with possiblefeatures that might appeal to consumers.

– B-school students would have stopped when they completed the firstgood product idea. The D-schoolers went back again and again to comeup with a panoply of possible winners.

Sources: Design-Thinking and the MBA Curriculum, Darden School of Business, 2008;The Talent Hunt, BusinessWeek, 2006.


Nike, General Electric, McDonald's, Intel, Procter & Gamble and many others are looking beyond traditionalsources of leadership to a new set of schools andprograms to find innovative managers.


Whether your goal is to develop new products or services, a new way of marketing to your customer, or to reinvent your entire business model, “design thinking” holds valuable clues as to how to get to bigger ideas, faster and more efficient.

Roger Martin,Dean of the RotmanSchool of Management, University of Toronto, Canada


Today’s business people do not need to understand designers better. They need to become designers.

Roger Martin,Dean of the RotmanSchool of Management, University of Toronto, Canada


To become a successful innovatorYou need the approach and mindset of designer.

You need Design Thinking to Connect to Human Experience in all its sophistication & complexity.

What skills should be taught in design thinking programs for entrepreneurs and innovators:

• Collaboration in multidisciplinary teams. Engineering, business, design, social sciences should be combined as they are combined in our real life experience;

• Ability to tackle ill-defined problems.Systematic approach to work with qualitative information – “finding it, gaining insights, organizing it optimally for conceptualization, evaluation and communication”*;

• Co-creation with your customer new business models, new markets and, ultimately, a new world.

* Charles L. Owen Design Thinking: Driving Innovation


One day when the studentswere having a particularlydifficult time with figuredrawing, I handed around a reproduction of a masterdrawing and – on impulse –told the students to draw theimage upside down. To ourgreat surprise, the drawingswere excellent. This did notmake sense to me. Why should it be easier for thestudents to draw an image inthat unusual orientation? Working with negative spaceprovided more clues – andmore questions. I foundstudents could draw better bylooking not at the form theywanted to draw but instead bylooking at the space aroundthe form.

Betty Edwards, Drawing on the right side of the brain.


Design Thinking

Two ways of thinking, two modes of seeing


If I’d ask people what they wanted, they would have said a faster horse.

Henry Ford

Without changing our patterns of thought, we will not be able to solve the problems we created with our current patterns of thought.

Albert Einstein

Analytical Thinking

http://www.flickr.com/photos/deboraborialis/1809628289/

So, let’s shift a focus from “object” to the “space” behind it and see how far it leads us…


http://www.flickr.com/photos/deboraborialis/1809628289/

Thank you for attention.

www.designresearch.ruDr Ekaterina Khramkova, Lumiknows

creativity, design thinking and how these have to do with innovation & entrepreneurship

Design

included design

blue oceans

business models

darden school

rotman school

rotman school

artistic revolution

talent hunt