Download - Festival of Ideas Townsville 2016

Design Thinking or Decline Thinking

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Paul HuxtableDesign Thinker, Practitioner

Dr Brandon GienCEO, Good Design Australia

“Good Design is a journey that begins by questioning conventional wisdom and stepping outside one’s comfort zone, exploring for better solutions that simply make us smile.”

“We believe in the transformative power of Design to improve our quality of life, shape a better Australia and create a more sustainable and prosperous world.”

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Design Thinking

Introduction.. PH 5 mins

Brandon Gien. Good Design Australia.. 30 mins

Design thinking, a global perspective Three case studies

Paul Huxtable. Serial Product Developer.. 30 mins Design Thinking, a practitioners perspective Three case studies

Workshop/Discussion 20 mins

Closing PH/BG 5 mins

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“…..draws upon logic, imagination, intuition, and systemic reasoning, to explore possibilities of what could be, and to create desired outcomes that benefit the end user”

Tim Brown CEO, IDEO

problem solutionexploration

Design Thinking.. Paul Huxtable

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Design Thinking at it’s best..

applies to…

Products

Services

Business models and strategies

Society and Sustainability

Economic Prosperity

is only limited by COMMUNITY VISION

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Design Thinking..

is not limited by…

By Location... Centralized or Regional

By Population… Major city or Regional town

By Socio-economics

By Business type… Public, Private, Sole traders, SME’s, Corporations

is only limited by COMMUNITY VISION

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Vision is all about perspective

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Design thinking is .. idealistic When empathy expands understanding When exploration reveals discovery When problems cultivate solutions When creativity challenges convention When imagination elevates knowledge When calibration delivers validation When obscure becomes obvious When divergence greets convergence When value triumphs over cost When the result makes everyone smile

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Customer

Timing

Knowledge

Imagination

Return on InvestmentCost

LIABILITY ASSET

Time

Design thinking is.. pragmatic

RISK

RISK

RISK

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Customer

Timing

Knowledge

Imagination

Time

Design thinking is.. a journey

RISK

RISK

RISK

RISK

RISK

RISK

RISK

RISK

RISK

discover > define > develop > validate > deliver > review

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Applied Design Thinking.. Essentials

Top down commitment A Champion/s Encourage Creative Thinking Step outside comfort zone Explore… Look, listen, ask, learn A strong analytical capacity Access to the knowledge bank Access to skills and resources Think global FRAME your APPETITE for INNOVATION

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problem solutionexploration

FRAMING

Framing… Appetite for Innovation

Wide or narrow depending on.. Timing Financial Risk Sector…markets Resources…technology

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Big Mistakes

Poor framing… to big to digest Poorly defined problem = wrong solution Designing a solution then looking for a problem Poor research, product, technology, market Lack of financial scrutiny Complacency Under-utilizing the knowledge bank Under-estimating the effort, cost and resources The Innovators Nightmare

“Mission accomplished”

Premature Evaluation

The INNOVATORS NIGHTMARE

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Community driven Cooperative

Mondragon, Arrasate, Spain Education was it’s foundation Inspired by community champions

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Mondragón

Remote Pyrenees Mountains of Northern Spain Basque Population < 10000 in the 1940’s post Franco Oppressed, Impoverished, Uneducated, Unemployed

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Mondragón

1941 Fr. Don José María Arizmendiarrieta, a Jesuit Priest arrives in town.

Discovers a town desperate for economic security and social justice.

Taught at apprentice school of towns’ largest employer Tertiary/trade education numbers limited (+15%) The engineer's son would always become an engineer,

and the son of a labourer always became a labourer Town leaders reluctant to change Problems were systemic & serious

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Mondragón

Don José believed Education and Community values to be at the core of the solution

To cure economic poverty, first combat the "poverty of intellect"

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Photo taken by Paul Huxtable in 1982

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Mondragón

Realizing the power of Community driven change He went to the community and presented a proposal

for a new school run by democratic control. He met them on the streets, in bars and restaurants. He was driven and persistent. Six hundred respondents pledged cash or other

support for his proposed school.

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Mondragón In 1943, Don José opened a community owned and

run school providing training in technical skills He also developed a base of young people capable of

free-thinking (design thinking) He wove ethics and social consciousness into his

lessons, questioning the conventional labour and social practices

Don José also made community service part of the curriculum

This created a base of workers that became the foundation of his cooperative movement.

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One Cooperative 24 workers/owners

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Mondragón Cooperative

In 1950 four graduates went to work for the towns largest employer…

but became disillusioned at the lack of management interest in new ideas and….

in 1954 they left and hatched an idea for a community owned cooperative.

They travelled the countryside collecting donations from their impoverished neighbours.

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Mondragón Cooperative

They had no business plan. In fact, they did not even know what their new business would produce.

Yet, on the strength of people's trust in Don Jose alone, they were able to raise US$361,604.

In 1956 the group of young, working class graduates with few job prospects founded a small co-operative to build paraffin stoves.

They named their new enterprise Ulgor. State supported tax relief provided in start-up phase.

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One Cooperative 149 workers/owners

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Mondragón Corporation

Other co-operative business ventures followed Education, Industrial, Finance, Research &

Development, Insurance, IT, Robotics, Health, Retail, Communications, Solar & Wind power.

When they needed capital for expansion, they started their own co-operative bank.

When the state health system declined worker health benefits, they started their own health insurance system.

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1 Mondragón Corporation

Number of employees: 74,335 (2015) Revenue: € 12.1 billion (2015) Total assets: € 24.7 billion (2014) 261 businesses and cooperatives 15 technology centres

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Re-invention of a business A Product Design and Engineering Consultancy Diverse sector experience Fee for service product development was erratic Reasonable shareholder returns Limited growth potential

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2 AppliancesAutomotiveCommerce

CommunicationsWater

AquacultureDefense

ElectronicMedical

May-08 Copyright 2008 Proen Design Australia

Paul HuxtableWanted: New Challenges

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Broad Plan

Develop our own products No idea what, but start looking

Why? Less reliance on consulting Position for sustainable growth Develop multiple income streams

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Look for problems that resonate Market opportunities experiencing low penetration Scalable Opportunity for Inventive Solutions Own the Intellectual property Clear pathway to market Product purpose easily understood Outsource manufacture in South Australia Funded internally Export potential If we can’t afford to lose it, don’t do it

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Explore, listen, ask a design client complained of pallet rack damage in

his warehouse.

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2 RACK COLLAPSE in 2003 In a warehouse in Brampton, Ontario Fatality…Took 3 days to recover the deceased

Example onlyv

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2 RACK COLLAPSE in 2003

Coroners report found deficiencies in warehouse safety found company and manager culpable Company fined Considered charging the manager with manslaughter Initiated sweeping changes in OHS Growing global trend in liability and OHS laws

A problem waiting for a solution

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2 Problem

No experience in safety products No experience in the warehousing or logistics Limited finances No supply capability No staff No distributor network

Lets do some research

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2 Market Research Australia-1.5 million columns requiring protection North America - 20 million & Europe 30 million Less than 10% of vulnerable columns are protected 10% PA require repair= $$$ In North America and Europe, there are approx. 25

competitors, none of which have a dominant brand position

Three market channels (Makers, 3PL, Safety) Favourable trends in H&S legislation Favourable trends in Standards

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2 2004.. Plan

Let’s Design a new Column Protector Use knowledge & creativity to innovate Challenge convention DESIGN the business model to suit our appetite Must be inventive Own and Protect IP Outsource manufacturing requirements Outsource distribution EXPORT FOCUS Stage market entry

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2 1st Generation

Design $5000 Tooling $5000 Patents $$$$$$$ Disrupted the market

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2004.. Validation

Computer simulation of impact Laboratory impact testing Test various materials Test site -26’C cold-store 2005 Market Release (AUST) Market feedback positive Attracted interest of distributors Exhibited at trade shows First order paid for project ROI = stratospheric

1st Generation

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Opportunities

Realized how little we knew about this market sector Every rack manufacturer had unique product shape Different markets with unique requirements Production capacity limiting growth Ongoing product development based demand New opportunities leveraged from market position Create greater synergy with distribution network 2005 Targeted USA, UK, Norway First Export order.. Norway

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2 2014.. 5th Generation

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2 Results Sold in over 60 countries >90% sales are export Very high ROI… each project funded the next Made in Adelaide WE ARE A MICRO ENTERPRISE Not achievable without Design Thinking

The above logos remain at all times the property of the respective owners

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Rescuing a Business Network 2007 Four Adjustable Long Line Oyster Farmers In Regional Australia.. Multiple locations Not happy with function/durability of equipment Creating issues with production and quality

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“We know what oyster farmers need” “We want to develop our own oyster baskets” Outsource manufacture Internal requirement will justify project Financed by network partners Poorly framed

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3 Challenges Poor understanding of complexities of manufacture Limited marketing knowledge in this space Complacency among some shareholders Not all shareholders focussed 2008.. Sought limited external design assistance

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3 Problems Design of first Shellfish basket completed 2009 Directors ignored advice of experts re tooling 1st Generation limited market release in 2011 Issues.. product quality from imported tooling Issues.. product range too small, performance, cost Reputation damaged

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3 Design Thinking begins

2013…Mentor gets involved .. re-calibration Redesign of product range Financial analysis used as a design aid Redesign of tooling Redesign of business model, financial model Redesign of marketing methods Redesign of business systems

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3 Design Thinking Results

2015.. Second Generation market release(5 sizes) Manufactured in Adelaide “world best” performance/value Unique scalable business/manufacture model Distribution model development ongoing Exporting to 5 countries and growing Ongoing product development

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3 MI$TAKE$

Lack of attention to detail ..front and back end Underestimated technical challenges Underestimated business & financial challenges Overseas manufacture was wrong decision Shareholder changes created issues

LEARNED FROM MISTAKES AND NOW ON THEIR WAY

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Case Studies… Summary

Many case studies presented were mostly regional.

Regions are an often forgotten powerhouse of Innovation.

Early Australians used DESIGN THINKING to adapt, improvise and innovate solutions to problems amplified by remoteness.

Driven by community.

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Inno

vatio

n Ec

o Sy

stem

State Initiatives distributed

Regions

The best Innovation Eco-Systems… are multi-layered

AdvantageRegion supplemented

Community

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Townsville.. A snapshotRegional Ranking

http://insight.regionalaustralia.org.au

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Townsville Innovation Regional Ranking 220/563

http://insight.regionalaustralia.org.au

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Design Thinking..Townsville IP performance ranking poorly, but… Registered Research Providers(RRP’s) ranking well Suggests that RRP’s are under-achieving

Low conversion rate from Research to Intellectual Property Low rate of commercialization of Intellectual Property This may also apply to James Cook University

Focus on growing Intellectual Property creation Focus on Commercializing Intellectual Property Build a local “Design Thinking” resource An Annual Good Design competition to…

Create a sustainable “buzz” in the region with state, national and international links

Draw out all ideas casting the net as wide as possible From James Cook University From Businesses, startups and from backyard inventors

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Design Thinking.. Closing Look, listen, ask, learn Challenge complacency & tradition Step outside your comfort zone.. often Define the problem Attention to detail Make a simple clear business case Look for a clear pathway to market Be prepared to pivot think Think Globally Calibrate and recalibrate your business case Imagine Failure.. Plan to avoid it (chris hadfield)

Join the conversation:#ideas_tsv

Download - Festival of Ideas Townsville 2016

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