design thinking for disruptive innovation - burton lee - kyiv - oct 13 2015 - final

'Design Thinking' Methods for Disrup4ve Innova4on

Fedoriv Hub | Bionic University

Dr. Burton Lee PhD MBA European Entrepreneurship & Innova1on

Stanford Engineering School, Silicon Valley, CA

www.StanfordEuropreneurs.org || @Europreneurs

Kyiv, Ukraine Oct 13 2015

The Essence of ‘Design Thinking’

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Today’s Case Study

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Along with two current examples from Ukraine…

Importance of Product Design

for Building Successful

Companies…

… and Reducing Failures

Thru ‘Premature Scaling’

ObservaDons from Ukraine & Europe •  Visits to leading UA ICT companies (Prom.UA, playtech), KPI

•  7 years working in Europe with tech startups, corpora1ons, investors, universi1es, engineering and business professors & schools, governments and the European Commission –  Poland, Estonia, Latvia, Lithuania, Slovakia, Croa1a, Russia, Romania, Bulgaria, Czech, Germany, UK, Finland, Norway, Sweden, Denmark

–  Collabora1ons with European universi1es in Ireland, Finland, France, Germany

Oct 13 2015 Copyright Burton H. Lee & Innovarium Ventures 2015 6

European Startup Teams OIen Miss These Key AcDviDes

•  Develop too few product/service concepts –  Have just 1-‐2 ideas

•  Too few interac1ons with real users/customers –  2-‐3 discussions vs mee1ng/observing 00’s –  Don’t make serious effort to go into market, understand customers and the market

–  Develop li`le sense of market segments: high, middle, low •  Build insufficient prototypes

–  1 or 2 vs 10 vs 500 •  Test prototypes with too few real users •  Start with the Wrong Ques1ons About User Needs


Using ‘Design Thinking’

To Increase

New Product Success Rates at Ukrainian Technology

Companies

ABOUT THE SPEAKER

DR. BURTON LEE PHD MBA

STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES

[email protected]

WWW.STANFORDEUROPRENEURS.ORG

@EUROPRENEURS

Map of PresenDng Speaker NaDonaliDes

European Entrepreneurship & InnovaDon @ Stanford Engineering

(ME421)

Winter 2015 – Year Seven

Enterprise Estonia Silicon Valley

Ghent, Flanders Region Belgium

iMinds ICT Research InsDtute

h`p://www.europeanentrepreneursatstanford.com | h`p://me421.stanford.edu Oct 16 2015 Copyright Burton H. Lee & Innovarium Ventures 2015

February 10 @ Stanford Engineering Jeff Lynn, Seedrs (UK) & Matija Kopic, Farmeron (HR)

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January 27 @ Stanford Engineering Vassil Terziev, Telerik (BG) & Japec Jakopin (Slovenia)

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January 13 @ Stanford Engineering Uwe Horstmann, Project-‐A Ventures (DE) & Signe Viimsalu, Estonian Business Angels (EE)

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Topics Covered

Oct 13 2015

Equity Crowdfunding

European Entry Strategies for Valley Startups

East v West Europe

Copyright Burton H. Lee & Innovarium Ventures 2015 15

The Story of European Entrepreneurship in Europe Europe vs Silicon Valley

Oct 13 2015

Entrepreneurship and InnovaDon in Europe Today

Europe vs Silicon Valley

Europeans in Silicon Valley

Arts, Culture, Design, Language

& Tradi1ons

History & Poli1cs

Law & Policy

Ins1tu1ons & Personali1es

Copyright Burton H. Lee & Innovarium Ventures 2015 16

Mentoring CroaDan Startups at Geek Business Camp, Brown Forum, Osijek, April 2015 17

Using ‘Design Thinking’

An Example of How One Silicon

Valley Company Re-imagined the Shopping Experience

and the Shopping Cart

A ‘Lean Startup’ Approach to Early Stage Entrepreneurship Educa1on

Product-‐Market Fit


Elements of ‘Design Thinking’ •  Needs Finding

–  Direct Observa1on of Users and User Behaviors –  User Surveys and Ques1onnaires –  Interviews –  Shadowing –  Understanding & Iden1fying Proper Context for New Products/Services

•  IdeaDon –  Improvisa1on –  Storytelling –  Storyboarding –  Use Case Analysis

•  Prototyping –  ‘Soj Prototyping’ of products/services

•  IteraDon –  Pivo1ng

•  QuesDon-‐Asking –  Asking the ‘Right Ques1on’ | Knowing ‘Wrong Ques1ons’


Re-‐designing the 21st Century Shopping Cart

One Example

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IDEO Shopping Cart Project

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Observe Real Customers & Customer Behavior


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Record Real Customers & Customer Behavior

Oct 13 2015 26

Sketching – Where Product IdeaDon & SoI Prototyping OIen Starts

How Would You Redesign The Shopping Cart for Modern Shoppers in Ukraine?

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Direct Engagement with Real Users

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‘SoI Prototyping’

Soj Prototyping Materials & Tools •  Paper •  Cardboard •  Plas1c •  Wooden s1cks •  Post-‐it Notes •  Cloth •  Sketches •  Scissors •  Tape •  Glue •  Staplers •  Markers


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One Design Team’s SoluDon for 21st Century Shoppers

Actual Product Design Process (generally not linear for new products and untested markets)

Search for Product-‐Market Fit

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Key DT Methodologies

•  Idea1on •  Needs Finding •  Ques1on Asking | Listening | Watching •  Assump1ons Challenging •  Storytelling •  Soj Prototyping •  Itera1on •  User Context Seeking


‘Storytelling’ is An EssenDal Part of Design Thinking

•  Role playing (ac1ng) •  Storyboarding •  Ar1fact crea1on •  Use case analysis •  Improvisa1on (ac1ng) •  PPT presenta1on •  Architecture & ecosystem diagrams


What is Different About ‘Design Thinking’? •  Avoids ‘Hard Engineering’ ac1vi1es, expenditures and commitments for as long as Possible

•  Combines many ‘hard’ & ‘soj’ disciplines: –  Sociology Design –  Psychology Art & Drawing –  Anthropology –  Human Factors –  HandiCrajs & Making Things –  Business –  Engineering & Architecture

•  Searches for disrup've and new crea1ve approaches to solving societal problems and marketplace gaps

•  Focuses on finding and ‘asking the right ques1ons’ Oct 13 2015 Copyright Burton H. Lee & Innovarium

Ventures 2015 40

Two Design Challenges from Ukraine Today

Two Teams from

Ukraine

Design Challenges from Ukraine

•  Personal security system for ci1es

• Wounded soldier ba`lefield survival and care system


Personal Security System for CiDes

• What are personal dangers & risks faced by ordinary ci1zens in Ukraine’s ci1es?

•  How would you get their input? •  How many people would you talk to? • What does one of your soj prototypes look like?

• What would it do? How would it use technology to make ci1zens safer?


Wounded Soldier Bahlefield Survival and Care System

•  What are personal dangers & risks faced by ordinary soldiers in Ukraine’s war?

•  What are top 5 injuries faced by soldiers? •  How would you get their input? •  How many people would you talk to? •  What does one of your soj prototypes look like?

•  What would it do? How would it use technology to make soldiers safer/receive faster or be`er medical treatment?


What Each Team Needs to Figure Out

•  What is the problem? •  Who is the end user? •  How does your system help to solve the problem?

•  How did you arrive at your tenta1ve solu1on? •  How would you test this further in the marketplace?


The Two Ukrainian Design Teams Go Off for 20

Minutes to Work on Their First ‘SoS Prototype’

Solu4ons …

DisrupDve InnovaDon

Current Examples in Business & Technology

from California

Oct 13 2015 Copyright Burton H. Lee & Innovarium Ventures 2015

Source: Steve Blank, 2012

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What We Do in Silicon Valley •  We build and grow (“scale”) companies to a global level faster – and more efficiently – than anywhere else in the world

•  We create more new jobs and industries – faster – than anywhere globally

•  We look for and reward disrupDve ideas, technologies, teams and intellectual property that can be scaled globally

•  We do world class research and technology development

•  We design, build and manufacture great technology products and services


CharacterisDcs of ‘DisrupDve InnovaDon’

•  Exponen1al ‘fast’ adop1on (months or years) •  Slow adop1on (decades) •  Consumer vs enterprise •  Sojware vs hardware •  Viral growth (network effects, typically consumer) •  DI is coming more ojen, over broader sectors of private and public life, led by IT advances

•  Capital requirements can vary greatly •  Social upheavals (some1mes) vs ‘Crea1ve Destruc1on’

Oct 13 2015 Copyright Burton H. Lee & Innovarium

Ventures 2015 50

Android & iPhone “Disrup've Innova'on” via New Business Models + Advanced Product Design

Copyright Burton H. Lee & Innovarium Ventures 2015

Smart Phone “Company-‐Busters” New Products and Services for Global Markets

Oct 13 2015 52

Smart Phone Growth

•  Technological Innova1on – Miniaturiza1on, new interface technologies

•  Design Innova1on – Deep customer ‘touch’ & engagement

•  Plarorm Innova1on – AppStore, iCloud

•  Business Model Innova1on – Unit sales + AppStore + iCloud +++


SpaceX ‘Grasshopper’ Reusable First Stage Test Vehicle

What ‘Space’ is Airbnb In ??

The Customer Experience Perspec4ve 62

PresentaDons from The Two Ukrainian Design Teams !!

Key Points to Discuss

•  What is the problem? •  Who is the end user? •  How does your system help to solve the problem?

•  How did you arrive at your tenta1ve solu1on? •  How would you test this further in the marketplace?


Cau4onary Note •  Due to 1me limita1ons, the two Ukrainian teams and par1cipants did not experience or demonstrate a full Design Thinking process.

•  We presented this evening a short abbreviated example of what one cycle of a larger Design Thinking exercise might look like, using two problem areas that are understood and of interest to many Ukrainians.

•  To be more fully realis1c, both teams would have needed to spend substan1al 1me directly with their target users, and to iterate through numerous ‘soj prototypes’ and user engagement interac1ons.


Wrap-‐Up and Summary

Product Design Is *Not* the Same as ‘Engineering Design’

Product Design Excellence & Skills Are Essen4al to

Growing Successful Companies in Ukraine

The Essence of ‘Design Thinking’

Join Our Online Community

@europreneurs

Speaker Presentation Slides

www.slideshare.net/burtonlee1

Speaker Videos – YouTube Channel

‘StanfordEuropreneurs’ ‘European Innovation @Stanford’

www.StanfordEuropreneurs.org me421.stanford.edu 79

THANK YOU Dr. Burton Lee PhD MBA Stanford School of Engineering [email protected]

WWW.STANFORDEUROPRENEURS.ORG

@EUROPRENEURS

Working in Silicon Valley, Europe, LaDn America and Washington DC

•  Senior financial, technical and strategy advisory services for global technology innova1on organiza1ons •  Professional Services

–  Technology startup and growth companies •  Interim CXO and Advisory Board roles •  Expert guidance & decision-‐making at the interface between market/customers, technology and finance •  Business development – industrial and government •  Business plan prepara1on/research/review; Government Grant proposal prepara1on/review •  Coaching and mentoring of CEOs and other CXO-‐level managers •  Assistance with government regulatory and policy agencies

–  Angel, venture capital and private equity Investors •  Fund strategy, team selec1on and market posi1oning •  Due diligence: technical, financial, strategy and business models

–  Public and non-‐profit R&D laboratories •  Technology transfer & partnerships; venturing and spin-‐out of companies; strategy and business development; grant applica1ons

–  Research universi1es •  Innova1on-‐related models, policies and prac1ces •  Technology transfer and licensing; industry partnerships and rela1ons; development and strategy; grant applica1ons

–  Na1onal and regional government agencies •  Innova1on policy formula1on, analysis and review; cluster development strategy; economic impact studies •  Science & technology policy formula1on, analysis & review: space, avia1on, nanotechnology, sojware/AI/robo1cs, manufacturing

•  Selected recent clients –  US/European technology startup companies – alterna1ve energy, robo1cs/AI, sojware, Internet, nanotech –  Venture and private equity funds – aerospace, nanotechnology, ICT, compu1ng, advanced materials, clean tech –  Office of the Prime Minister, Ireland; European Commission; Na1onal Science Founda1on; NASA, Na1onal Academies

•  Dr. Burton Lee PhD MBA, Managing Director –  Contact: [email protected] Based in Palo Alto, CA near Stanford University –  Bio/References: LinkedIn Profile –  Lecturer, European Entrepreneurship & Innova1on, Stanford School of Engineering

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