business and design. design enables you to move up the value chain. design is crucial for creating...

Business and DESIGN24th February, 2014

Self Assessment of Ability to Think Differently Prof. P Achutha Rao 11Prof. P Achutha Rao

Why are we in Business?

• Make Money?

• How do we make money?

2Prof. P Achutha Rao

ORGANISATION

Consumes Produces

Making Money

Sells,

Consumes

“Resources”

Produces

“Products”

“Services”Makes

Money

in a SELLER”S MARKET3

Prof. P Achutha Rao

ORGANISATION

Seller’s Market

Making Money


ORGANISATION

Seller’s Market

Making Money

Where are these now, and WHY?


ORGANISATION

Seller’s Market

Making Money

Decisions based on internal considerations

“Measurables”


Comfortable in a “Protected market”

Could not survive the “Global Competition”

Well established Firms - Incumbency Factor

Doing Things

Doing Things Well

Doing Things Better

Was enough to survive in a

Protected Market and

Stable Technology

Prof. P Achutha Rao 7

Doing Things Better

Focus on improving EFFICIENCY –

Only Internal Considerations


Doing Things

Doing Things Well

Doing Things Better

Was enough to survive in a

Protected Market and

Stable Technology

Prof. P Achutha Rao 8

Doing Things Better

Focus on improving EFFICIENCY –

Only Internal Considerations

Prof. P Achutha Rao 8Innovation – Prof. P Achutha Rao 8

Global

Competitive Market

Technology Explosion

Doing THINGS DIFFERENTLY

Doing DIFFERENT THINGS


• Doing Things

• Doing Things WELL

• Doing Things BETTER

was enough to survive in a

Protected Market

and

Stable TECHNOLOGY

Were incapable of changing the way

they were doing Business,

hence could not survive

• Doing Things BETTER

• Focus on improving efficiencies - internal considerations

Prof. P Achutha Rao 9Innovation – Prof. P Achutha Rao 9

Global

Competitive Market


Doing THINGS DIFFERENTLY

Doing DIFFERENT THINGS

"Earlier there was this telephone.

But now we have come in to the

era of Smartphone.

This is development of Congress.

https://www.facebook.com/427861923902309/photos/a.4855

40304801137.108113.427861923902309/691948850826947/?

type=1&theater

If ITI were in the Smart Phone

Business today, we could

have agreed with Him.


Telephone is luxurious

Long waiting period

Only one Manufacturer.

Only one Instrument

per house hold.

Customer has no choice

1970

achutha rao – design to improve quality of life

Customer has no choice

of the instrument.

Only one colour - BLACK

Fixed location for the

Instrument

11 Prof. P Achutha Rao

• Where do we keep the receiver when

the call is for somebody else?

• Rotary dialing is very tiring and

cumbersome when more numbers are

involved and the lines are engaged

1970

Receiver in normal Position

Receiver waiting to be picked up by the

Caller, call is alive is indicated by


1970


Caller, call is alive is indicated by

GLOWING LED

Development Speed of Civilisation

Of 1000 generations in the last 40,000 years,

• Only today’s generation has

• traveled in outer space,

• has used atomic energy, PCs, and notebooks, and

• uses artificial satellites to transmit audio, video

and other information around the globe.and other information around the globe.

15

Michael A. Orloff, Inventive Thinking through TRIZ: A Practical Guide (Berlin: Springer, 2003) 1

Pro

f. P

Ach

uth

a R

ao 90% of the knowledge and all material values

that have arisen in the history of humanity were

developed in the 20th century!

ORGANISATION

in a

Competitive Global Village

Making Money

Resources Products

“Perceived

VALUE”

Competitive

Product


ORGANISATION

in a

Competitive Global Village

Making Money – Innovation: TOMORROW

Resources Products

Buyers’ Market

Features

Price(Product Offer)

Expectations

Costs(Perceived Value)


ORGANISATION

exists to

Create customer VALUECreate customer VALUE

Cost Value


PerceivedInternal

Make Meaning

(Affordable)

18

Prof. P Achutha Rao


• Make MEANING!

19

Guy Kawasaki, The Art of the Start: The Time-tested, Battle-hardened Guide for Anyone Starting Anything

(New York: Portfolio-Penguin, 2004) 3–5.

Pro

f. P

Ach

uth

a R

ao

How do we make MEANING?

• By creating ‘CUSTOMER VALUE’

• When you create Customer Value, He

HE makes Profit!

• How does HE make ‘Profit”? htt

p:/

/1.b

p.b

log

spo

t.co

m/_

LYId

C4

yxm

Ac/

TT

hb

wm

11

wcI

/AA

AA

AA

AA

AG

4/o

2v

Cq

1F9

_1

k/s1

60

0/c

om

mo

n+

ima

ge

.jp

g

• How does HE make ‘Profit”?

• He ‘Benefits’ from investing

in our ‘Products’

• When HE makes Profit, WE make Profit!

20

htt

p:/

/1.b

p.b

log

spo

t.co

m/_

LYId

C4

yxm

Ac/

TT

hb

wm

11

wcI

/AA

AA

AA

AA

AG

4/o

2v

Cq

1F9

_1

k/s1

60

0/c

om

mo

n+

ima

ge

.jp

g

‘Customer VALUE’‘Customer VALUE’

Impact Impact

Quality of LIFEQuality of LIFE

Prof. P Achutha Rao

Make MEANING

• By Business Innovation

– Create ‘Customer VALUE’

• Understand what “benefits” the user is looking

for in our “PRODUCT” and offer them affordably

• Create a Desirable Experience through • Create a Desirable Experience through

“DESIGN THINKING”

• Successful innovation increases the

benefits-to-costs ratio = VALUE

as perceived by the USER


The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Context Stable,

Protected market

“Meaning”

defined by

Value added before use.

Price

Decision Making Based predominantly on

internal considerations

“Inside Out”


The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Make Meaning

Context Stable,

Protected market

Dynamic,

“Global Village”


“Meaning”

defined by


Pricedefined by Price



“Inside Out”


The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Make Meaning

Context Stable,

Protected market

Dynamic,



“Meaning”

defined by


Price

Value in Use

Value Propositiondefined by Price Value Proposition

How people want to

live their LIFE



“Inside Out”


The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Make Meaning

Context Stable,

Protected market

Dynamic,



“Meaning”

defined by


Price

Value in Use


How people want to

live their LIFE



“Inside Out”

Based on External

Considerations.

“ Outside In”


The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Make Meaning

Context Stable,

Protected market

Dynamic,



“Meaning”

defined by


Price

Value in Use


How people want to

live their LIFE



“Inside Out”

Based on External

Considerations.

“ Outside In”

MindsetMindset Embedded Mindset*Embedded Mindset*Matt Kingdon, The science of Serendipity


The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Make Meaning

Context Stable,

Protected market

Dynamic,



“Meaning”

defined by


Price

Value in Use


How people want to

live their LIFE



“Inside Out”

Based on External

Considerations.

“ Outside In”

MindsetMindset Embedded Mindset*Embedded Mindset*Matt Kingdon, The science of Serendipity

Flexible ThinkingFlexible Thinking


The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Make Meaning

Context Stable,

Protected market

Dynamic,



“Meaning”

defined by


Price

Value in Use


How people want to

live their LIFE



“Inside Out”

Based on External

Considerations.

“ Outside In”

Mindset Embedded Mindset*Embedded Mindset*Matt Kingdon, The science of Serendipity


Value Creation

ProcessInside-out DESIGN Outside-In DESIGN

28

Pro

f. P

Ach

uth

aR

ao

Role of DESIGN over time

Source: Les Wynn, DMI 2000

Role of DESIGN over time

Source: Les Wynn, DMI 2000

Design • User Focus

• Cultural and social context

• VALUE ADDED

• Differentiation

Customer

Focus

What is DESIGN?

"Everything is Design"

Tom Peters

31

WHAT IS DESIGN

"Everybody is a Designer"

Henry Dreyfuss

32

WHO IS A DESIGNER

Henry Dreyfuss

We bear in mind that the object being

worked on is going to be ridden in,

sat upon, looked at, talked into,

activated, operated or in some way

used by people.

When the point of contact between the

product and the people becomes

a point of friction, then the industrial a point of friction, then the industrial

designer has failed.

On the other hand, if people are made safer, more efficient,

more comfortable – or just plain happier – by contact

with the product, then the designer has succeeded”

33WHO IS A DESIGNER

"Everything is designed, one way or another”.

WHAT IS DESIGN

"Everything is designed, one way or another”.

Some objects are designed well, while others are

not.

34

Paola Antonelli, Humble Masterpieces, Everyday marvels of Design, ReganBooks.

Image: http://images.theglobeandmail.com/archives/RTGAM/images/20080725/whFordModelTPIX0725/1908ModelTcrank.jpg 34

Pro

f. P

Ach

uth

aR

ao

WHAT IS DESIGN"Everything is designed, one way or another”.

Some objects are designed well, while others are not.

35


WHAT IS DESIGN'Design is not important

Good Design is IMPORTANT Jonathan Ive

36

36

Pro

f. P

Ach

uth

aR

ao

achutha rao – design to improve quality of life37Prof. P Achutha Rao

How do we level head light?

Increasing number means going up or down?

achutha rao – design to improve quality of life 38Prof. P Achutha Rao


How do we remember this table?What is to do with position “1”


MARUTHI 800USABLE?

40

The steering wheel is not aligned with the

driver’s seat.

What are the long term implications?

Brake Pedal is to the left of the seat center.

Accelerator pedal is just right to the seat center.Prof. P Achutha Rao

SANTRO

Rear Wiper “On” Position

Rear Wiper Fountain “On” Position

USABLE?

41

Rear Wiper starts first. The fountain starts later. Wiper will always run

dry, even though user’s manual says “Never run the wiper dry” but it is

designed to run dry. Prof. P Achutha Rao

SANTRO

Rear Wiper “On” Position

Rear Wiper Fountain “On” Position

USABLE?

Rear Wiper starts first. The fountain starts later. Wiper will always run

dry, even though user’s manual says “Never run the wiper dry” but it is

designed to run dry. 43

Prof. P Achutha Rao

3D Engraving Machine – IMTEX 2013 Excellent Technology –

Poor “Design” in terms

of VALUE PERCEPTION

of International

Market.

Lacks visual

sophistication to

command the PRICE.


Damaged Wires

covered by

insulation tape

45

Pro

f. P

Ach

uth

aR

ao

Ill - designed Controls and

Displays .

46Pro

f. P

Ach

uth

aR

ao

Rusted/poorly painted pipe


Broaching Machine – IMTEX 2013


Likely to activate controls

at the bottom, when

operating.

IMTEX 2013

'Design is not important

Good Design is IMPORTANT’Jonathan Ive

49

Prof. P Achutha Rao

Operator needs to

stand on the steps to

use the Programmer!

IMTEX 2013

How do we access the

controls behind the

Wheel?


How do we access the controls

IMTEX 2013


How do we access the controls

behind the Wheel?

Do we have a

ladder to reach

the controls and

displays?

IMT

EX

20

13


IMT

EX

20

13


How easily can

we reach the

controls and

displays?

'Design is not important

Good Design is IMPORTANT’

Jonathan Ive54

Prof. P Achutha Rao

IMTEX 2013

IMTEX 2013

W easy is it to service?


IMTEX 2013

Should the wires be laid

to create visual cluster

and create confusion?


and create confusion?

IMT

EX

-2

01

3


Utter disregard to ergonomic

considerations, basic design

guidelines not recognised.

How easily and

quickly, can we

operate this

switch?

Protruding Key obstructing the

operation of switch


Orientation and height of

placement of switch module

Good ENGINEERING

must not be confused for

Good DESIGN!Good DESIGN!


Good ENGINEERING

must not be confused for

Good DESIGN!

Excellent Technology/Engineering

is

NOT excellent DESIGN


Design – Technology focused

• Announced in September 1989, The

Mac Portable was Apple's first attempt

at a more easily portable Macintosh.

• It had a bay for a 3.5" half-height drive,

and could support up to two Super

Drives.

• Reaction to the Portable was poor.

It was clunky, slow, had no expansion

Classic Failures

It was clunky, slow, had no expansion

capabilities, and its active matrix screen

(later backlit) made it incredibly

expensive. It sold for $6,500.

61“Biggest tech product failures,” Object: A Curations Creation, http://www.oobject.com/category/biggest-failure/

http://www.newlaunches.com/entry_images/0307/22/macintosh_portable.jpg

Apple Portable Macintosh Apple Portable Macintosh –– A Classic FailureA Classic Failure

Sophisticated engineering must not be confused for sophisticated design

Pro

f. P

Ach

uth

aR

ao

Dif

fere

nt

Co

nn

ota

tio

ns

htt

p:/

/old

com

pu

ters

.ne

t/a

pp

le-n

ew

ton

.htm

l

1990’s – Apple Newton Classic FailuresD

esi

gn

–D

iffe

ren

t C

on

no

tati

on

s

Peter Merholz, Brandon Schauer, David Verba, Todd Wilkens: Subject to Change, O’REILLY, 2008

htt

p:/

/old

com

pu

ters

.ne

t/a

pp

le

http://oldcomputers.net/apple-

newton.html

The Apple Newton crammed features and promises

its large form-factor

62

Pro

f. P

Ach

uth

aR

ao

Dif

fere

nt

Co

nn

ota

tio

ns

1990’s – Palm PioltD

esi

gn

–D

iffe

ren

t C

on

no

tati

on

s


http://petermigut.com/wp-content/uploads/2012/05/PDA-PalmPilot.jpg

Palm Pilot delivered only the essentials

that users needed


Dif

fere

nt

Co

nn

ota

tio

ns

http://petermigut.com/wp-

content/uploads/2012/05/PDA-PalmPilot.jpg

1990’s – Palm Pilot – Personal Digital Assistant

Jeff Hawkins measured the sizes of his colleagues’ shirt pockets,

De

sig

n –

Dif

fere

nt

Co

nn

ota

tio

ns


Jeff Hawkins measured the sizes of his colleagues’ shirt pockets,

and then carved a block of wood that would fit inside.

He carried this block of wood everywhere, and when someone

mentioned a date or a piece of information he wanted to jot

down, he would mime inputting that information into the block

of wood.

When engineers suggested new features and functionality to

him, he’d hold up the block of wood and ask, “Where would it

go”64

Prof. P Achutha Rao

Dif

fere

nt

Co

nn

ota

tio

ns

: S

ub

ject

to

Ch

an

ge

, O

’RE

ILLY

, 2

00

8

2000’s Classic FailuresD

esi

gn

–D

iffe

ren

t C

on

no

tati

on

s

Pe

ter

Me

rho

lz,

Bra

nd

on

Sch

au

er,

Da

vid

Ve

rba

, T

od

d W

ilke

ns:

Su

bje

ct t

o C

ha

ng

e,

http://apple-history.com/images/models/g4cube.jpg

The Apple G4 was worthy of MOMA, The Apple G4 was worthy of MOMA,

but not the marketbut not the market


Design – Different Connotations 2000’s

• Housed in an 8x8x8 cube, the G4 Cube combined the

elegance of the iMac with the power of the PowerMac

G4.

• The G4 Cube was a foray into the business market, as

well as an answer to those who wanted an iMac-like

machine, with more choice in monitors.machine, with more choice in monitors.

http://apple-

history.com/images/models/g4cube.jpghttp://apple-history.com/g4cube 66

Pro

f. P

Ach

uth

aR

ao


• The Cube was a remarkable feat of engineeringa remarkable feat of engineering,

crammed inside an elegant caseelegant case.

• The Cube shipped to retail markets with a 450 MHz G4

processor, a 20 GB hard drive, a 56 kbps modem, 64 MB

of RAM, and Apple s Pro Mouse, for $1799.

• Another configuration was available through the Apple • Another configuration was available through the Apple

Store, with a 500 MHz G4, a 30 GB hard drive and 128

MB of RAM, for $2299. Gigabit Ethernet was available

as a BTO option.

http://apple-

history.com/images/model

s/g4cube.jpg

http://apple-history.com/g4cube 67Prof. P Achutha Rao


• The consensus was that Apple had misjudged the

market, making the Cube an expensive "luxury"

computer instead of a cheaper monitor-less iMac.

http://apple-

history.com/images/models/g4cube.jpghttp://apple-history.com/g4cube 68Prof. P Achutha Rao

Dif

fere

nt

Co

nn

ota

tio

ns

: S

ub

ject

to

Ch

an

ge

, O

’RE

ILLY

, 2

00

8

Famous venture capitalist John Doerr said that Segwaysales might hit $1 billion as fast as any company in history. The company spent about $100 million developing the product.

De

sig

n –

Dif

fere

nt

Co

nn

ota

tio

ns

Pe

ter

Me

rho

lz,

Bra

nd

on

Sch

au

er,

Da

vid

Ve

rba

, T

od

d W

ilke

ns:

Su

bje

ct t

o C

ha

ng

e,

http://www.team228.org/media/pictures/view/23

Dean Kamen on his Segway

at the 2002 Kickoff Event.

From 2001 to the end of 2007, From 2001 to the end of 2007, the company only sold 30,000 the company only sold 30,000 units of its twounits of its two--wheeled wheeled scooter.scooter.

http://www.time.com/time/specials/packages/article/0,28804,1898610_1898625_1898641,00.html #ixzz2ZZBJuLzI


Dif

fere

nt

Co

nn

ota

tio

ns

: S

ub

ject

to

Ch

an

ge

, O

’RE

ILLY

, 2

00

8

2000’s

Is the Segway relevant to the way people live their lives?

It was a product, not a solutionhttp://www.innovationmanagement.se/2012/05/02/a-lesson-in-innovation-why-did-the-segway-fail/

http://www.themumblog.com/wp-content/uploads/2013/06/Segway.jpg

De

sig

n –

Dif

fere

nt

Co

nn

ota

tio

ns

Pe

ter

Me

rho

lz,

Bra

nd

on

Sch

au

er,

Da

vid

Ve

rba

, T

od

d W

ilke

ns:

Su

bje

ct t

o C

ha

ng

e,

innovation-why-did-the-segway-fail/

Focused On Invention, Focused On Invention, Rather Than InnovationRather Than Innovationhttp://www.techdirt.com/articles/20090730/1958335722.shtml


Engineering Design Design Thinking

Functions

Performance

Use Context

Form & Function

Useful

Usability

GOOD

Design

Machine/Equipment People

Product is a set of components to

deliver functions71

Performance

Reliability

Cost

Usability

Desirability

Affordability

Product is a set of

attributes – useful,

usable & desirableProf. P Achutha Rao


Engineering design is the use

of scientific principles,

technical information and

imagination in the definition

Design thinking is a proven

and repeatable problem-

solving protocol that any

business or profession can

htt

p:/

/ww

w.f

ast

com

pa

ny

.co

m/r

eso

urc

es/

de

sig

n/d

zie

rsk

/de

sig

n-

Design

is conceiving and giving form

to artifacts

that solve problems

72

imagination in the definition

of a mechanical structure,

machine or system to

perform prescribed functions

with the maximum economy

and efficiency (Fielden, 1963)

business or profession can

employ to achieve

extraordinary results.

A protocol for solving

problems and discovering

new opportunities

Ma

rk D

zie

rsk,

htt

p:/

/ww

w.f

ast

com

pa

ny

.co

m/r

eso

urc

es/

de

sig

n/d

zie

rsk

/de

sig

n

thin

kin

g-0

83

10

7.h

tml

that solve problems

Karl T. Ulrich, University of Pennsylvania; DESIGN – Creation of Artifacts in Society

Prof. P Achutha Rao


Creation and

validation of a

body-of-knowledge

Creation and

adaptive use of a

body-of-behaviors and

73

body-of-knowledge body-of-behaviors and

values

Prof. P Achutha Rao

GOOD DESIGN

is about creating

DESIRABLE EXPERIENCES

to ENHANCE VALUE


Basic

Essential

Services

Optimum

Experiences

Design enables to move up in the Value Chain

75

The progression of economic value from core commodities to optimum experiences (adapted from The Experience economy by Pine and Gilmore)

Core

Commodities

Basic

Goods

Cost Driven Premium PRICE


Basic

Essential

Services

Optimum

Experiences

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G


76


Core

Commodities

Basic

Goods

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G

Cost Driven PremiumPRICING STRATEGY


High

Differentiation

Basic

Essential

Services

Optimum

Experiences

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G


77

Low

Differentiation


Core

Commodities

Basic

Goods

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G


77

Prof. P Achutha Rao

High

Differentiation

High

RelevanceC

US

TO

ME

R N

EE

DS

Bu

nd

le o

f A

ttri

bu

tes

Basic

Essential

Services

Optimum

Experiences

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G


78

Low

Differentiation


CU

ST

OM

ER

NE

ED

S

Bu

nd

le

Low

Relevance

Core

Commodities

Basic

Goods

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G

Cost Driven Premium PRICEPRICING STRATEGY


High

Differentiation

High

RelevanceC

US

TO

ME

R N

EE

DS

Bu

nd

le o

f A

ttri

bu

tes

Basic

Essential

Services

Optimum

Experiences

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G


79

Low

Differentiation


CU

ST

OM

ER

NE

ED

S

Bu

nd

le

Low

Relevance

Core

Commodities

Basic

Goods

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G



High

Differentiation

High

RelevanceC

US

TO

ME

R N

EE

DS

Bu

nd

le o

f A

ttri

bu

tes

Basic

Essential

Services

Optimum

Experiences

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G


80

Low

Differentiation


CU

ST

OM

ER

NE

ED

S

Bu

nd

le

Low

Relevance

Core

Commodities

Basic

Goods

CO

MP

ET

ITIV

E P

OS

ITIO

NIN

G



Cost Reduction “Syndrome”

Why people buy products?

It performs “something” – the buyer derives some

benefit/s.

BenefitsBenefits

Harms + CostsProduct Value =


Value Chain

Pro

du

ct V

ALU

E

(Ha

rms

+ C

ost

s)


Cost Driven Premier Price

Pro

du

ct V

ALU

E

Be

ne

fits

÷(H

arm

s +

Co

sts)



Internal ExternalFe

atu

res

Inte

rna

l Co

sts

Ma

rgin

Selli

ng

Pri

ce

Cu

sto

me

r

Pe

rce

ive

dV

alu

e

Ma

rke

t

Seg

me

nt

Position in

Value Chain

A FA CA MA PA VA BA A

Pro

du

ct

A PA VA BA A

A



Internal ExternalFe

atu

res

Inte

rna

l Co

sts

Ma

rgin

Selli

ng

Pri

ce

Cu

sto

me

r

Pe

rce

ive

dV

alu

e

Ma

rke

t

Seg

me

nt

Position in

Value Chain


Pro

du

ct

A PA VA BA A

A FA CA-X MA+X PA VA BA A A


Internal External

Fea

ture

s

Inte

rna

l Co

sts

Ma

rgin

Selli

ng

Pri

ce

Cu

sto

me

r

Pe

rce

ive

dV

alu

e

Ma

rke

t

Seg

me

nt

Position in

Value Chain


A FA CA-X MA+X PA VA BA A

A FA C M P V B A

Pro

du

ct

AA FA CA-2X MA+2X PA

VA BA AA

• How long can we continue?

• Has the “Benefits” to be offered by a “Product” enhanced?

• Has the “Harms + Costs” to the customer reduced by this

approach? If so, will it be significant?

• Will this work in a Competitive Market?

• Will the “BENEFITS” to be offered remain “STATIC” at all?



Benefits


BenefitsDecrease (Harms + Costs)

Increase Product Value =


Increase Benefits

Harms + CostsIncrease Product Value =

Increase Benefits

Decrease (Harms + Costs)Increase Product Value =


Benefits


Internal Decisions External Decisions

Product PERCIEVED VALUE



Benefits




Internal Cost Does not enhance


Internal Cost

Reductions

Does not enhance

PERCIEVED VALUE


Benefits






Internal Cost

Reductions

Does not enhance

PERCIEVED VALUE

Enhance Benefits and

Manage Internal Costs

Increased

PERCIEVED VALUE

What can we do with this product?

Any suggestions for Cost

Reduction?

How do we enhance VALUE?

Gets rusted,

Documents with long

storage periods?

90

storage periods?

Any harms/drawbacks?

We will not know

when the staple pins

are finished?

91http://www.yankodesign.com/2013/09/25/alert-staples

A whale of a stapler

92http://www.yankodesign.com/2013/09/23/a-whale-of-a-stapler/

Sophisticated Engineering must not be confused for sophisticated

DESIGN


Design Thinking• Sophisticated Engineering must not be confused

for sophisticated DESIGN

99



100

BBVA Introduces The Future of Self-Service Banking

http://www.mybanktracker.com/bank-news/2010/08/06/bbva-introduces-future-selfservice-banking/

Prof. P Achutha Rao



101



Prof. P Achutha Rao

Design Thinking

INTUITIVE INTERFACE

No longer is the ATM confined by

a limited number of buttons. The

touch screen accommodates any

purpose, including a full standard

keyboard.

102



Prof. P Achutha Rao

1986Process camera used in News-

Paper s and other publishing

houses.

Microprocessor controlled semi-

automatic Camera with 3 lenses.

Manual operation in case of

failure of circuits, enabling

unhindered use.

achutha rao – design to improve quality of life103

Prof. P Achutha Rao

Protruding keys will be activated when the

operator climbs on a stool and verifies the

image, before exposing. Camera gets reset!

Requires AC.

Flush, washable membrane key pads.

Memory for 100 programmes. More accurate,

simplified operation. No air-conditioning

required.

Monotype India Ltd.

Design for SERVICE -PCB exposed and held in

position for Service, only one

person is required, unlike in

the earlier model, where

somebody has to hold the

PCB in position for inspection.


Many variants using

common frames and

other parts, can be

changed in the

assembly line, reduced

Manual Camera


assembly line, reduced

delivery time drastically

and costs.

1986Micro processor based, Sealed

Membrane Key pad, storage for

100 programmes, and manual

override in case of failure

enabling retrieval of the

expensive exposed material

without loss.

achutha rao – design to improve quality of life106

Digital Paper and

Film Processor for

Publishing Industry –First Time in the World,

1986

Prof. P Achutha Rao

Why Microsoft produces lousy Products?

http://pareekhjain.blogspot.in/2012/07/why-microsoft-develops-lousy-products.html


Human Centred Design – DESIGN Thinking

Technology

Feasibility

Business

Viability

Process Innovation

Experience Experience

108

Reference: http://readymade.typepad.com/readymade_news/design-thinking/

Human Values

Desirable

Usable

Useful

Functional

Innovation

Emotional

Innovation

Experience Experience

InnovationInnovation

Prof. P Achutha Rao

PRODUCT

SUCCESS

Doing the

RIGHT PRODUCT

Bundle of

Attributes Effectiveness

SUCCESS

Doing the

PRODUCT RIGHT

Design

Process

109Preston G. Smith, Donald G. Reinertsen; Developing Products in half the Time, New rules, new tools: John Wiley & Sons, Inc

Efficiency

The Paradigm Shift

Old Paradigm

Make Money

New Paradigm

Make Meaning

Mindset Embedded

Mindset*Matt Kingdon, The science of Serendipity


Doing Things Well Doing Things Doing Things Doing Things Well Doing Things Doing Things

DifferentlyDifferently

Doing Different Doing Different

ThingsThings

Is there a NEED to change the Paradigm?

How will you bring this change in your Organisation? 110Prof. P Achutha Rao

Where to start?

Change is Difficult

“The real difficulty in changing the course of any

enterprise lies not in developing new ideas, but in

escaping old ones.”

- John Maynard Keynes

Derrick Palmer & Soren Kaplan Managing Principals, Innovation Point LLC: A Framework for Strategic Innovation; Blending strategy and creative exploration to discover future business opportunities: http//www.innovationpoint.com/Strategic%20Innovation%20White%20Paper.pdf

112Innovation – Prof. P Achutha Rao

.

TRIZ Prof. P Achutha Rao, 113Prof. P Achutha Rao

.. .

What is to ‘What May Be’ and ‘What Can Be’

• Change is the law of life. And those who

look only to the past or present are

certain to miss the future.

114

certain to miss the future.

John F. Kennedy

Prof. P Achutha Rao

WH0 IS A DESIGNER?



Business/Designtwo sides of the same coin

116

DESIGN BUSINESS

Prof. P Achutha Rao

The Future is already here, it is just not

evenly distributed

William Gibson

Think of Tomorrow

Make Meaning


Make Meaning


business and design. design enables you to move up the value chain. design is crucial for creating...

Design

p achutha rao caller

p achutha rao comfortable

achutha rao design

different things

things better focus

protected market

organisation sellers

money innovation