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THE ROLE OF DESIGN THINKING A keynote by Pieter Baert in spring 2015 for the financial industry. pieter baert
About Pieter Baert From To MAKING PEOPLE WANT THINGS MAKING THINGS PEOPLE WANT Online marketing & digital advertising > Designing digital services & products
1 What actually is design thinking? And what it’s not.
We are talking about design in its broadest meaning.
Design thinking is often confused with visual design
“Design is not just what it looks like and feels like. Design is how it works.” Steve Jobs, co-founder Apple
“Everything is designed.” Start stop > lower emissions > lower taxes > I can afford driving pleasure
“Even my car insurance broker uses design.” Minor car accident (stress) > paperwork (confused) > printed stickers (easy)
“We moved from thinking of ourselves as designers to thinking of ourselves as design thinkers.” David Kelley, co-founder Ideo
Design thinking is a user-centered approach to problem solving
Actually design thinking is less about thinking and more about doing
! Key elements 1. People-centered 2. Highly creative 3. Hands-on 4. Iterative
1 People-centered You start from what people, users, customers, consumers, (…) need or want to do. Their motivations and the problems they are trying to solve. Empathy is key. It’s not about you. You need the ability to understand and share the feelings of others.
2 Highly Creative Design thinking stimulates you to look at situations differently and come up with new solutions, that go beyond and improve existing alternatives. Integrative thinking is key. You need the ability to look at all the different aspects of a problem
3 Hands-on Stop discussing, start working. Make ideas tangible. Prototyping is thinking with your hands. Test your hypnotises. Failure is a (necessary) part of the process in order to succeed. Experiments with trial and error are key.
4 Iterative The road to success does not follow a straight line. The more you are able to loop through “understand > create > learn” cycle, the higher chance you have for good results.
Google Ventures ‘Design Sprint’ Test
How design feels Test “The Process of Design Squiggle” by Damien Newman, Central Office of Design
2 How do you apply design thinking? Key pillars, model & process
When can design thinking be helpful?
? ‘Wicked’ problems Problems that are ill-defined: both problem and solution are unknown at the beginning. A large part of the problem solving is actually defining the problem. And/or tricky: it involves quite a bit of risk, as you are leaving the comfort zone of the organisation.
! Not every problem Design thinking (creative, intuitive, emotional) is not the answer to every single problem. For some question you will need rational thinking, spreadsheets, powerpoint and wo/men in suits to come to a valid answer. >> e.g. acquiring a local competitor
Innovation that is also feasible and viable Business - viability - Innovation People - desirability - Technology - feasibility - ideo.com, creating new, innovative avenues for growth, grounded in business viability and market desirability. Test
Zoom in to the design thinking process
! No ‘one size fits all’ approach There is not one single proces or toolkit that serves every single case. There is a wide variety of processes and tools that people customise to serve their needs. The five step process from Stanford Design School is a model that is broadly used and has proven its value.
The Human Centred Design process The Human Centered Design Toolkit by IDEO
An iterative cyclic proces Empathise Ideate Define Prototype Test The Design Thinking Proces by Stanford Design School
1 Empathise Understand the experience, situation and emotion of the person who you are working for • Observe users and their behaviour in the context of their lives. • Engage with people in conversations and interviews. Ask why. • Watch and listen: ask someone to complete a task and tell you what they are doing
2 Define Process and synthesise the findings in order to form a user point of view that you will address • User: develop an understanding of the type of person you are designing for • Needs: synthesise and select a limited set of needs that you think are important to fulfil • Insights: express insights you developed and define principles
3 Ideate Focus on idea generation. You translate problems into solutions. Explore a wide variety and large quantity of ideas to go beyond the obvious solutions to a problem. • Creativity: combine the un/conscious with rational thoughts and imagination • Group synergy: leverage the group to reach out new ideas an build upon other’s ideas • Separate the generation and evaluation of ideas to give imagination a voice
4 Prototype Build to think. A simple, cheap and fast way to shape ideas so you can experience and interact with them. • Start building: Create an artefact in low resolution. This can be a physical object or a digital clickable sketch. Do it quick and dirty. • Storyboard: create a scenario you can role play in a physical environment and let people experience your solution
5 Test Ask for feedback on your prototypes. Learn about your user, reframe your view and refine your prototype. • Show: let people use your prototype. Give it in their hands and let them use it. Listen to what they say. • Create experiences: let people talk about how they experience it and how they feel
3 How does it benefit financial institutions? The benefit of design thinking in the financial industry.
“If you always do what you always did, you will always get what you always got.” Albert Einstein, theoretical physicist
My father in law was a local bank branch manager. He is a walking CRM database. “The relationship with your customers is changing”
“People adopt new technology, discover new solutions and develop different expectations”
“Which triggers the need for new approaches in the financial industry”
! Challenges Some key challenges in the financial industry: • • • • • Threat of disruption by ‘FinTech’ High customer acquisition costs Lower customer loyalty Increasingly difficult to up-sell Reduced switching costs
Research on Millenials > link
Bain, Customer Loyalty in Retail Banking: Global Edition 2014
The role of digital channels worldwide Bain, Customer Loyalty in Retail Banking: Global Edition 2014
The human touch remains important Bain, Customer Loyalty in Retail Banking: Global Edition 2014
The uprise of smartphones & mobile internet
3.1 Design thinking helps you innovate
A Big bets With PowerPoint presentations full of statistics and customer insights, you need to make big bets on new products, technologies, and premium services that go to market and flop, often for reasons that are hard to figure out.
B A lean approach Design thinking stimulates you to be highly creative and at the same time allows for quick validation of those concepts with the target customers and business model (as such limiting potential risk).
3.2 …helps you differentiate from competitors
A Serving is selling As it becomes increasingly harder to differentiate on price, product range or local presence, “customer experience” becomes a key differentiator for banks. “Serving is the new selling."
! "Most banks recognise that many customers struggle to consistently save, spend and invest their money wisely, (…) (…) the traditional role of banks was to provide services and enforce terms and conditions, and not to worry about whether customers were making smart choices. (…) taking a more proactive stance, with offerings that make it easier for people to stick to good behaviours and achieve their personal financial goals." IDEO, Retail banks turning to Design
3.3 …helps you increase customer satisfaction
> Customer retention A customer centric mindset helps you improve the customer experience over different channels and touchpoints and positively impacts customer satisfaction. Customers are more loyal, buy more and higher margin products from you. It also improves your net promotor score. (ambassadorship)
/ But it has it’s limits… 1. It’s good to skip endless research, meetings and strategy sessions, but under-thinking is as bad as over-thinking. 2. Great ideas that benefit consumers require a viable business strategy built into an idea 3. Every problem is different. There is not one proces or toolset to standardise design thinking.
! What should you remember? Key take outs
1 Design thinking is a user-centered approach to problem solving. Empathy is key.
2 Design thinking is especially helpful for “wicked” problems.
3 Design thinking is a step-by-step process that is repeated over multiple iterations.
4 Design thinking is about doing. Let’s start together today.
QUESTIONS? SHOOT. Pieter Baert +32 473 667 861 firstname.lastname@example.org pieter baert