festival of ideas townsville 2016
TRANSCRIPT
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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.”
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
“…..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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Customer
Timing
Knowledge
Imagination
Return on InvestmentCost
LIABILITY ASSET
Time
Design thinking is.. pragmatic
RISK
RISK
RISK
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
problem solutionexploration
FRAMING
Framing… Appetite for Innovation
Wide or narrow depending on.. Timing Financial Risk Sector…markets Resources…technology
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Community driven Cooperative
Mondragon, Arrasate, Spain Education was it’s foundation Inspired by community champions
1
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Mondragón
Remote Pyrenees Mountains of Northern Spain Basque Population < 10000 in the 1940’s post Franco Oppressed, Impoverished, Uneducated, Unemployed
1
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
1
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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"
1
Photo taken by Paul Huxtable in 1982
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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.
1
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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.
1
One Cooperative 24 workers/owners
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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.
1
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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.
1
One Cooperative 149 workers/owners
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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.
1
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
2
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
2 AppliancesAutomotiveCommerce
CommunicationsWater
AquacultureDefense
ElectronicMedical
May-08 Copyright 2008 Proen Design Australia
Paul HuxtableWanted: New Challenges
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
2
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Framing… Appetite for Innovation
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
2
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Explore, listen, ask a design client complained of pallet rack damage in
his warehouse.
2
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
2 RACK COLLAPSE in 2003 In a warehouse in Brampton, Ontario Fatality…Took 3 days to recover the deceased
Example onlyv
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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= $$$ In North America and Europe, there are approx. 25
competitors, none of which have a dominant brand position
Three market channels (Makers, 3PL, Safety) Favourable trends in H&S legislation Favourable trends in Standards
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
2 2004.. Plan
Let’s Design a new Column Protector Use knowledge & creativity to innovate Challenge convention DESIGN the business model to suit our appetite Must be inventive Own and Protect IP Outsource manufacturing requirements Outsource distribution EXPORT FOCUS Stage market entry
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
2 1st Generation
Design $5000 Tooling $5000 Patents $$$$$$$ Disrupted the market
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
2
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
2
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
3
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Framing… Appetite for Innovation
“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
3
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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.
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Inno
vatio
n Ec
o Sy
stem
State Initiatives distributed
Regions
The best Innovation Eco-Systems… are multi-layered
AdvantageRegion supplemented
Community
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Townsville.. A snapshotRegional Ranking
http://insight.regionalaustralia.org.au
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
Townsville Innovation Regional Ranking 220/563
http://insight.regionalaustralia.org.au
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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
Des
ign
Thin
king
©
201
6 Pa
ul
Hux
tabl
e
Fest
ival
of I
deas
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)