better service through business design
TRANSCRIPT
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@cathycracks
better services through business designUXIstanbul 2016
Cathy Wang @cathycracks
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Problem Solution SolutionUnderstand Problem
Abductive Thinking
Business Thinking Design Thinking
The difference between business thinking and design thinking as per Tim Brown
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@cathycracks
in this talk:
How to do financial modelling
How to use excel
How to apply design thinking to businesses
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@cathycracks
Cathy Wang@cathycracksNomadic Vancouverite found mostly in Europe.
Business Design & Transformation. London. UK
I spend a lot of time thinking about the future, systems, and the interconnectivity of world around us.
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Building market ready products
Digital Transformation
Startup Incubation
Founded in 2000 280+ employees in 6 cities 30%+ year-on-year growth for 15 years Best place to work in Europe 2012 & 13
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@cathycracks
Always design a thing by considering it in its next larger
context —
a chair in a room, a room in a house, a house in an environment, an
environment in a city plan.Eliel Saarinen
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@cathycracks
design thinkers treat businesses the way designers treat users
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@cathycracks
Seeing Design Thinking in its core elements: • design thinking framework • design process • design rationale
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@cathycracks
applying design thinking is like painting a picture…
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@cathycracks
frame canvas brushes
credit: @folletto
Context Project Tool
The framework for design thinking…
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@cathycracks
the design process
Understand Design Iterate
Regardless of what we are designing, we go through a similar design thinking process.
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@cathycracks
always ask why
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@cathycracks
Yes, delete it No, keep itNo, keep itYes, delete it
Do you really want to delete this? Do you really want to delete this?
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@cathycracks
The spectrum of design
Management consultingVisual
designUX
designService design
Business design
If we look at the spectrum of our design competency, design thinking can be applied in all of it.
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@cathycracks
A BUCKET FULL OF PETROL OR A MONTH OF
SOLAR POWER?Become the king of solar power in your neighbourhood.
Get a share of the solar power plant.
Read more:
Framing the problem
Helsinki Energy
Once upon a time, there was Helsingin Energia, 3rd biggest energy producer in Finland. Every year they talked about building a solar power plant, but someone always said: "No one will buy expensive electricity. We can produce cheaper juice by burning coal."
Futurice launched a test marketing campaign to engage with potential customers. It turns out, a huge amount of the existing Helsingin Energia customers would happily pay a higher price for solar power.
Because of that, Helsingin Energia realised that people don't want to buy expensive electricity. They rather invest in green power.
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@cathycracks
SELECT AND ORDER YOURSELF A DESIGNATED SOLAR PANEL
FREE SOLAR PANEL (10) PUCHASED SOLAR PANEL (1184)
Prototyping a business model
Helsinki Energy
Futurice built a web page where people could buy/rent their own solar panel on the large rooftop of their solar power plant, and nothing else.
In two days the whole power plant was sold out.
"We have sold the whole solar power plant. Should we build it now?"
Because of that, the executives could say nothing except: "Yes!"
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@cathycracks
What is a good service?
meaningful
When I think about what a good service means, I start with it being “meaningful”. But what does “meaningful” mean?
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@cathycracks
What is a good service?
meaningful
scalable
flexible
adoptable
profitable
sustainable
desirable
learnable
approachable
useful
feasible
viable
usable
enjoyable
sensible
There are many different ways to justify “meaningful”, from different point of view.
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@cathycracks
Startup Corporation
Thinking of business, on a scale
Startup as a very beginning / shell of a business. On the other spectrum there’s the large corporation.
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@cathycracks
I was involved in a project to craft out the business and service for a music related startup. The client needed business design, but they were asking for design execution.
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@cathycracks
How should we design it?
I was involved in a project to craft out the business and service for a music related startup. The client needed business design, but they were asking for design execution.
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@cathycracks
What are the driving forces behind MVP
and roadmap?
I was involved in a project to craft out the business and service for a music related startup. The client needed business design, but they were asking for design execution.
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@cathycracks
Why are we designing this
service?
I was involved in a project to craft out the business and service for a music related startup. The client needed business design, but they were asking for design execution.
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@cathycracks
How is this startup going
to sustain itself?
I was involved in a project to craft out the business and service for a music related startup. The client needed business design, but they were asking for design execution.
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@cathycracks
why are we doing this?
the client asked us to.
This is the wrong answer.
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@cathycracks
why are we doing this?
I want to meet Bruce Springsteen.
The client also said this as a reason at some point…
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@cathycracks
why are we doing this?
Build a business that can grow into something more.
We want to answer the question with our business hat on.
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@cathycracks
why are we doing this?
We want enable users to capture, collect and share personal moments, reliving those memories from different events in life.
Put on our product hat and answer the question.
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@cathycracks
the product development strategy= why are we doing this?
We needed a driving force to drive the product development. This strategy will have to balance all the needs for business, design, and technology.
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@cathycracks
the product development strategygrowing the user base for a year before monetization is turned on
It wasn’t easy coming to this ”conclusion”, and i am going to tell you how this come to be.
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@cathycracks
why are we doing this?
Does it help us grow the user base?
With the strategy in place. we had better answers. when planning the sprints, even the developers asked business oriented questions.
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@cathycracks
The paralleled process product design v.s. business design
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@cathycracks
evaluate the market / context
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@cathycracks
Who are the competitors? What’s the market like?
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@cathycracks
What’s the size of the market? Served market? Served market growth rate? Target market?
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@cathycracks
how will the users behave
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@cathycracks
Key audience 18 -25 year old
Personality descriptors include: Passionate Curious Genuine Warm Fun-loving Explorative Connected Energetic Caring
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@cathycracks
Amount of active users Drop out rate Engagement rate
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@cathycracks
discover the values proposition
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@cathycracks
Following the user journey
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@cathycracks
Revenue hypothesis Revenue streams Secondary market
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@cathycracks
how to make it run
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@cathycracks
What’s the best tech stack? What tools will we use?
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@cathycracks
Expense projection Operating expenses HR
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@cathycracks
different set of tools, same process
A lot of the business design does happen in excel in order to quantify decisions. But the application of design thinking is the same.
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
app launchTicket & Merch launch
Native Advertising launch
Musician subscriptionTip the musicianPRS
Direct booking with venue
The designer / normal people friendly plan
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
app launchTicket & Merch launch
Native Advertising launch
Musician subscriptionTip the musicianPRS
Direct booking with venue
CMO hired CTO hired
Community manager x 2 hired
Admin hired
Developer x 2 hired
Internationalisation x 1 hired
The designer / normal people friendly plan
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
app launchTicket & Merch launch
Native Advertising launch
Musician subscriptionTip the musicianPRS
Direct booking with venue
CMO hired CTO hired
Community manager x 2 hired
Admin hired
Developer x 2 hired
Internationalisation x 1 hired
CAC goal: £2 ARPU goal: £2
CAC goal: £1.5 ARPU: £4
CAC goal: £1.3 ARPU: £7
CAC goal: £1.2 ARPU: £8
The designer / normal people friendly plan
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
app launchTicket & Merch launch
Native Advertising launch
Musician subscriptionTip the musicianPRS
Direct booking with venue
Total active users: 200 Total users: 5K Total users: 14K Total users: 384k
CMO hired CTO hired
Community manager x 2 hired
Admin hired
Developer x 2 hired
Internationalisation x 1 hired
CAC goal: £2 ARPU goal: £2
CAC goal: £1.5 ARPU: £4
CAC goal: £1.3 ARPU: £7
CAC goal: £1.2 ARPU: £8
The designer / normal people friendly plan
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
Monetization turned on
High level strategy: Growing the user base before monetisation happens.
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
Primary user
Secondary user
ProjectedrevenueStreams
revenue
scale revenue by targeting secondary users for added value
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
ARPU (Primary users)
ARPU (Secondary users)
Less secondary users but they generate more revenue per user
Primary user
Secondary user
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Primary user
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
Secondary user
Primary user CAC
Secondary user CAC
Costs less to acquire secondary users as well
CAC. gives insight on what “users” mean to the business.
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@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
ProjectedrevenueStreams
revenue
Headcount
team ramp up for features
Operational cost
![Page 55: Better service through business design](https://reader033.vdocument.in/reader033/viewer/2022042907/587a8a141a28ab58288b5769/html5/thumbnails/55.jpg)
@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
ProjectedrevenueStreams
revenue
Headcount
team ramp up for features
hire more operational staff & international team
Operational cost
![Page 56: Better service through business design](https://reader033.vdocument.in/reader033/viewer/2022042907/587a8a141a28ab58288b5769/html5/thumbnails/56.jpg)
@cathycracks
the overall plan2015 2016 2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prod
uct
KPIs
Ope
ratio
nFi
nanc
ial
ProjectedrevenueStreams
revenue
headcount
cash in bank
Seed round A round
How fast are yo spending your money and how soon do you have to raise more money?
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@cathycracks
the iterative balancing act
Product
Strategy
Operation
Financial
This is an iterative balancing act between all the different consideration. it would give us a MVP roadmap, a financially sustainable business, and a reasonable operation.
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@cathycracks
In the end, better services
new revenues streams
more value provided for users
self sustaining
The business perspective has given us more context.
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@cathycracks
Thank youUXIstanbul 2016
Cathy Wang @cathycracks
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https://vimeo.com/95734218
References
Helsinki Energy
Cathy Wang@cathycracks
Wildlife Turst UK & Mental Illnesshttp://www.wildlifetrusts.org/tackling-mental-illness
http://designthinking.ideo.com/?p=49Design Thinking
http://ux.stackexchange.com/questions/49991/should-yes-delete-it-be-red-or-green/
Red or green button