iintroduction to strategic design
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Introduction to strategic design
Eirik Langås, Screenplay
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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Freia
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08.09.2010
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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Task:
Form groups of 4-5 people
describe the perfect tool for
organising your group
meetings throughout this
autumn.
Time: 10 minutes
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The design process (simplified)
SolutionCreative
phaseAnalysis
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http://grandburo.com/store/product.detail.php?pid=245
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Design is about creatingsomething with a purpose
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Design overload? / Kitchen
15
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SIDE 16
Three aspects of design
Visceral design:
Appearance
Behavioural design:
Pleasure and
effectiveness of use
Reflective design:
Rationalisation and
intellectualisation
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SIDE 17
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08.09.2010 SIDE 18
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9/8/2010 19© SCREENPLAY
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20
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Positively separate organizations, products or
services from competitors
Why do you choose one product from the shelve
instead of another?
21
Design is not about ugly or nice 1/2
Give the organization, product or service an
quality advantage
Or value for money (design can increase value
without increasing the production cost)
Positive substitute variables gives increase in
sales (eg. pc design)
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22
Design is not about ugly or nice 2/2
Identify organizations, products or services
Create awareness (exposure preference –
evoked set)
Visual symbols are remembered most easy
Symbolise the brand
The identity must be loaded (positioning) so that
it gives meaning and increase perceived value
The richer the better
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Design can communicate what you cannot say
• We are cool and youthful
• Emotions – like music
• Ex romantic perfume
What you cannot say is often what you like (liking)
• The rationale consumer is dead. (Think – feel – do)
• Feel – do – think
• Feel – think – do
Design can improve performance
• Easy to read
• Easy to use
• Simplify complex tasks or communication23
Design adds value in various ways
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Honda – Choir
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Design is an activity
Empathy
Design serves a
human purpose
Problem solving
Design shines where
the outcome is unclear
Finding alternatives
Design creates
options
Ideation and
prototyping
Design produces
things
From Mehrholz, P., Schauer, B. , Verba, D. and Wilkens, T. (2008): Subject to Change; Adaptive Path/O’Reilly
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Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”
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PAGE
27
“Marketing is not the art
of finding clever ways to
dispose of what you
make. It is the art of
creating genuine
customer value.”Philipp Kotler
(Marketing guru)
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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A strategy is an explicit goal and a vision of how to get there
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What is strategy?
30
A goal
Mostly: Sell more, become
young and trendy
More rare: Increase the
sale of the product by x %
with young, urban men
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Task: Increase the sale of diamonds with young, urban men
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What is strategy?
32
A goal
Mostly: Sell more, become
young and trendy
More rare: Increase the
sale of the product by x %
with young, urban men
…and how to reach it
Make young men buy
bigger or more diamonds
for their girfriends more
frequently
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SIDE 33
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What is strategy?
SIDE 34
A goal
Mostly: Sell more, become
young and trendy
More rare: Increase the
sale of the product by x %
with young urban men
…and how to reach it
Young men should wear
diamonds more often
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Strategy:
The plan
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Strategy vs. tactics: A (very) simplified
view
Tactics:
What you do
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• Strategy requires trade-offs:
If you choose one path, you are ignoring another
• Viable strategies focus on
unique positions and activities
• Strategies combine and orchester various
aspects – tangible and intangible, products and
services, …
• Strategy has a (long) time aspect
• Strategies should be assessed and revised
36
Strategy – some implications
Based on: Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78
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What is the difference?
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From:Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78
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39
“Thus my definition of strategy:
What makes you unique and
what is the best way to put
that difference into the
minds of your customers
and prospects.”
Jack Trout, Trout on Strategy
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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“If showbusiness wasn’t a
business it would be called
show show.”
Woody Allen
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Using design, visual arts, arts,
humanistic and cultural thinking,
psychology etc. to support
achievement of strategic
business goals (e.g. making more
money, raise awareness, create
sympathy, ...).
42
Strategic design
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• Create new products and
services
• Improve existing products
and services
• Develop services that
support
physical products
• Develop products that
improve services
• Develop new markets
• …
Strategic design is used for many
purposes
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Design before and now (simplified)
Product
Produkt with design
Before: Now:
Designed product
(ecosystem)
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…
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The devil is in the details
46
What does this
smell like?
What does this
sound like?
What does this
feel like?
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What is the product?
08.09.2010 47
Core
Product
Add ons / extras
Back seat heaters
Services / warranties
Free service after one year
Additional services
Insurancesetc.
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Three examples
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08.09.2010 SIDE 50
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Ecosystem: The mp3-player is just one
part of the success
ManagePlay Acquire
Adapted from Mehrholz, P., Schauer, B. , Verba, D. and Wilkens, T. (2008): Subject to Change; Adaptive Path/O’Reilly
iTunesiPod iTunes Music Store
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(Service) design offers tools to solve
strategic issues
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Understanding
• Benchmarking
• Ecology map
• Etnographic studies
Thinking (framing)
• Affinity diagram
• Fishbone diagram
• Unfocus group
Filtering
• Heuristic evaluation
• Personas
Explaining
• Experience prototyping
• Metaphors
Saco, Roberto M. & Goncalves, Alexis P. (2008): “Service Design: An Appraisal”
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9/8/2010 57© SCREENPLAY
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Zeit – Architect
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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Analysis and design are separate
phases
Solution
2. Creative phase
• Design research
• Sketching
• Prototyping
• Obeservation
• …
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• Technology
• …
Assignment/
brief/…
Concept/
prototype/…
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Analysis and design are separate
phases
Solution
2. Creative phase
• Design research
• Sketching
• Prototyping
• Obeservation
• …
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• Technology
• …
Assignment/
brief/…
Concept/
prototype/…
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Analysis is the foundation for
formulating the task (and thereby the solution)
Customer
behaviour
0
50
100
50 100
BAV III/IV – Ice Cream - Total Population
BAV 2000
Pralinato
Solero
Pierrot-Lusso
MövenpickMagnumHäagen-Dazs
Frisco Extrême FriscoCrème d’Or
Carte d’Or
BAV 2003
MarkenstaturWertschätzung + Vertrautheit
Marke
nvita
lität
Diffe
renzie
rung +
Rele
vanz
Brand studies
Competitor
analysis
Buying-
/information
proces
General web- and
market-trends
Statistics- and
surveys
Specific web-
and market
trends as well as
„Best Practice“
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Task: Design a vase.
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08.09.2010 © SCREENPLAY 64
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Task redefined: Design something to help people enjoy flowers in their homes.
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Analysis and design are separate
phases
Solution
2. Creative phase
• Design research
• Sketching
• Prototyping
• Obeservation
• …
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• Technology
• …
Assignment/
brief/…
Concept/
prototype/…
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Analysis and design are separate –
and very different – phases
Solution
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• Technology
• …
Assignment/
brief/…
Concept/
prototype/…
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Designing is about exploring
possibilities
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A concept is developed by
exploring the ”network of
possible wanderings”
After Herbert Simon,
Nobel Laureate(http://tr.im/xh9J)
9/8/2010 © SCREENPLAY 69
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Analysis and design are separate
phases
Solution
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• Technology
• …
Assignment/
brief/…
Concept/
prototype/…
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9/8/2010 71© SCREENPLAY
Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”
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9/8/2010 72© SCREENPLAY
Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”
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Analysis and design are separate
phases
Solution
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• …
Assignment/
brief/…
Concept/
prototype/…Today 07.10
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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”A market segment is a target
group (singled out from a large
universe or market) that is
believed to be receptive to the
brand concept or idea in a
way that others are not”
Kellog on branding
by Alice M. Tybout, Tim Calkins,
Kellogg School of Management
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Spot the
business student
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How do we get to know our
customers?
08.09.2010 77
Qualitative information
Quantitative information
What the
user does
What the
user says
1to1 interview Usability test
UserWeb analysis
Focus groups
Telephone interview
”Shop along”
”Eye-tracking”
Report from
call center Purchasing statistics
Observation
at home/in the
workplace/…
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| PLANNING IN A NUTSHELL,
15.11.2006
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| PLANNING IN A NUTSHELL,
15.11.2006
PAGE 79
Vor Ort: Tasks wie z.B. Diary
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• History with the company
– Intro to company, usage/purchase history, early impressions
• Domain experience and knowledge
– Domain expertise, competitors, share of wallet
• Goals and behaviors
– Needs/triggers for usage, typical process, channel usage,
feature and content usage, gaps, wish list
• Attitudes and motivators
– Description of experience, likes/dislikes, influencers, psychological
drivers
• Opportunities
– Reaction to new ideas, features, content, improvements
• Observation of actual behavior (field studies, usability tests)
User Interviews: Topics
From: Mulder, Steve: The user is always right: New Riders 2007
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How do we use what we know?
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Segments: Target groups and needs
08.09.2010 SIDE 83
Demographics
The Sensoric
Expectations
The Sociable
Behaviour
Preferred brands
Personality
Lifestyle
The concerned
Taste, packaging Whith teeth Prevention of
tooth deseases
Kids Young people Big families
Loves
peppermint
Smokes Intensive usage
Colgate stripe Ultra Brite Pharmaceutical
Self concerned Contact seeking Hypochondriac
Hedonistic Active Conservative
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• Your segments should…
• Explain key differences you’ve
observed among users
• Be different enough from
each other
• Feel like real people
• Be described quickly
• Cover all users
• Clearly affect decision making
Segmentation:
The Tests
From: Mulder, Steve: The user is always right: New Riders 2007
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Segmentation by behaviors and
attitudes – example FedExL
eve
l o
f p
rep
ara
tio
n
Desired level of personal interaction
From: Mulder, Steve: The user is always right: New Riders 2007
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Possible segmenting of students prior
to the Norwegian electionS
en
se
of civ
ic d
uty
Degree of engagement/involvement
in student activities
Happy go
lucky
Fear struck
duty-voter
Hyperactive
non-voter
Student-
politician
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Task: Segmenting
9/8/2010 87Screenplay
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08.09.2010 © SCREENPLAY 88
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• iTunes need to continuously develop their offering
• In order to do so they need to focus on certain segments
• Your task: Create possible segments for the iTunes to help them
develop new services
• Create the segments using attitudes and behaviours as discussed
• Use the four-field matrix as discussed
• Time for group work: 10 minutes
08.09.2010 © SCREENPLAY 89
Task: Segmenting
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• How do they discover new music?
• How do they feel about illegal downloading?
• When do they listen to music?
• How often do they listen to music?
• How (if at all) do they share their music?
08.09.2010 90
Questions that might help
© SCREENPLAY
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Segmentation by behaviors and
attitudes B
eh
avio
ur/
attitu
de
s
Behaviour/attitudes
From: Mulder, Steve: The user is always right: New Riders 2007
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Segmentation by behaviors and
attitudes D
ow
nlo
ad
s ille
ga
l m
usic
Readiness for new music styles
Care
s for
the q
ualit
y o
f th
e file
s
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Segmentation by behaviors and
attitudes T
rust in
th
eir
ow
n ta
ste
Readiness for new music styles
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Levis – Odysse
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Playstation – Double life
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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1) Business results depend on satisfying users
2) You are not your user
3) Learning about users requires direct contact
4) Knowledge about users must be actionable
5) Decisions should be based on users
From: Mulder, Steve: The user is always right: New Riders 2007
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What are personas?
• Personas are examples of a typical user in a target group – they
are stand ins for real users
• Personas not real people but represent real humans throughout the
design process
• As a tool, personas are widely used for both interface- and product
design
• Increasingly the marketing world takes interest in personas as well
• Even though personas are fictious they should be precisely
described precisely
• In order to make personas more real they are given real names and
personal details
08.09.2010 98
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Personas
Target groups vs. personas
Age
Income
Gender
Otherdemographics
Goals
Behaviors
Attitudes
Demographic target groups
Focus: Sell to people Focus: Understand how people
will actually use the product
From: Mulder, Steve: The user is always right, New Riders 2007
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Main elements of a persona
• Name and age
• Personal information
• Domain knowledge
• Relevant attitudes
• Narrative
• Goals, needs and
desires
• Business objectives
08.09.2010 100© SCREENPLAY
Illustration from: http://www.agile-ux.com/2009/12/02/personas-in-agile-development-yes-we-can/
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Possible segmenting of students prior
to the Norwegian electionS
en
se
of civ
ic d
uty
Degree of engagement/involvement
in student activities
Happy go
lucky
Fear struck
duty-voter
Hyperactive
non-voter
Student-
politician
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Election & students: possible personas
Fear struck
duty-voter
Hyperactive
non-voter
Happy go lucky
Marit, 22
from Bergen
• Marketing at BI
(2nd year Bachelor)
• Fadder for 1. års-
studentene
• Studies electrical
engineering at NTNU in
Trondheim (masters
degree, 3rd year)
• Plays in the band at
UKA
Andreas, 24,
from Skarnes
• Teacher student at
Høgskolen i Nesna
• Skibum
Stian, 21,
from Tromsø
”There doesn’t seem to be
a party that fits me.”
”What? Is there an
election? Excellent, that
will make for some good
jokes...”
”Is election day a public
holiday? I’m off kiting.”
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Personas enable focus
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Personas
ensure
empathy
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Personas are good
for consensus
From: Mulder, Steve: The user is always right, New Riders 2007
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Personas
create efficiencyFrom: Mulder, Steve: The user is always right, New Riders 2007
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Personas lead to
better decisions
Personas for DesignInformation architecture, interaction design, visual design,
content development, user testing
Personas for MarketingFramework for marketing campaigns, branding,
messaging, market research
Personas for StrategyFramework for business decisions,
offerings, channel usage, features
From: Mulder, Steve: The user is always right, New Riders 2007
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Personas come alive in different ways
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Persona card
From: Mulder, Steve: The user is always right, New Riders 2007
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Actual 1:1 persona-profiles
From: Mulder, Steve: The user is always right, New Riders 2007
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Persona office space
From: Mulder, Steve: The user is always right, New Riders 2007
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The most common German living room
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08.09.2010 113
Use personas to identify issues…
© SCREENPLAY
Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”
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08.09.2010 114
…and organise these to create
meaning
© SCREENPLAY
Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”
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PERSONAS
Typical quote:
Business goals
What do we want the person to do?
Name:
Age:
Lives:
Education:
Personal information
The users needs and desires
Appreciates
Hobbies
Situation:
What does the person want? Home life
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Today’s topics
• About Screenplay and me
• What is design?
• What is strategy?
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Introduction to personas
• Personas
• Business targets and branding
• Touch points
• Recap and outlook
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Quantitative
• Reduce costs
• Sell more
• Recruit new customers
• Increase awareness by XY%
• …
Qualitative
• Improve image
• Create an attitude
• Improve perceived quality
• ….
08.09.2010 © SCREENPLAY 117
Typical business targets
1) How do we identify
the problem?
2) How do solve the
problem? (i.e. what
do we do?)
3) How do we measure
if it works?
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08.09.2010 119© SCREENPLAY
From:Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78
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08.09.2010 120
Example Hotel
© SCREENPLAY
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08.09.2010 121© SCREENPLAY
Kim, W. Chan & Mauborgne, Renée (1997): “Value Innovation. The Strategic Logic of High Growth”
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Quantitative
• Reduce costs
• Sell more
• Recruit new customers
• Increase awareness by XY%
• …
Qualitative
• Improve image
• Create an attitude
• Improve perceived quality
• ….
08.09.2010 © SCREENPLAY 122
Typical business targets
1) How do we identify
the problem?
2) How do solve the
problem? (i.e. what
do we do?)
3) How do we measure
if it works?
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One tool:Branding and positioning
08.09.2010 123© SCREENPLAY
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8-Sep-10 124
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8-Sep-10 125
Brand / 1
A brand is a name, term, sign,
symbol, or design which is intended
to identify the goods or services of
one seller or group of sellers and to
differentiate them from those of
competitors.
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Denotation:
Direct meaning ≈
Connotation:
Indirect meaning ≈
126
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Connotation:
Indirect meaning
Better detected
than described
127
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8-Sep-10 128
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A brand is a
collection of
perceptions in
the mind of the
consumer
Definition of a brand / 2
8-Sep-10 130
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Today’s topics
• Who is Screenplay?
• What is design?
• What is strategy
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Segmenting
• Introduction to personas
• Personas
• Business targets: Branding and positioning
• Touch points
• Recap and outlook
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Touch points: How to reach the
customer
12h00 0h00
PR-ArticleAdvertising
Apéro in the
Bar at Hotel
zum Kreuz
Eating out
with friends
Bar/
Club
Lunch
Shopping at
a petrol
station
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Customer journey: Example airline
13308/24/09 © MAKING WAVES
Home Airport 1 Flight Airport 2 Destination
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Customer journey
13408/24/09 © MAKING WAVES
Customer
journey
Possible
touch points
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Customer journey and the business
perspective
13508/24/09 © MAKING WAVES
Customer journey
Users goals
Touch points
Business targets
Business processes
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Customer journey and the business
perspective
13608/24/09 © MAKING WAVES
Customer journey
Users goals
Touch points
Business targets
Business processes
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Personas reveal touch points
Fear struck
duty-voter
Hyperactive
non-voter
Happy go lucky
Marit, 22
from Bergen
• Marketing at BI
(2nd year Bachelor)
• Fadder for 1. års-
studentene
• Studies electrical
engineering at NTNU in
Trondheim (masters
degree, 3rd year)
• Plays in the band at
UKA
Andreas, 24,
from Skarnes
• Teacher student at
Høgskolen i Nesna
• Skibum
Stian, 21,
from Tromsø
What does a typical day in their life look like?
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The buying process
08.09.2010 138
Source: http://www.flickr.com/search/?q=customer%20journey&w=all
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Understanding the customer’s buying
process
08.09.2010 139
Awareness
Research
Evaluation
Purchase
Delivery
Post evaluation
Selection vs.
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Combining process and channel
08.09.2010 140
Broadcast Direct mail Store Internet Call center
Awareness
Research
Evaluation
Purchase
Delivery
Post
evaluation
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9/8/2010 Screenplay 141
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Possible user stories for H&M
142
Magasin DM Web banner Search HM.com Shop
Tim
e Ad in magazine
Get offers by
Visits the
clostest
H&M store
Reads article
in magazine –
googles H&M
Reaches
HM.com
Checks out
outfit and
accessories
Visits H&M
store
H&M
banner ad
Googler
“party
outfit”
Sees top in
magazine
H&M banner
Reads about the
new collection in
a newsletter
1 2
3
4
5
6
7
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08.09.2010 143
Cultural and other experiences
On site
• Stationary
• Mobile
Memory channel
• Web
Source: http://www.archimuse.com/mw2003/papers/garzotto/garzotto.html
Preparation
• Web
• Mobile
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Today’s topics
• Who is Screenplay?
• What is design?
• What is strategy
• Why is strategic design important?
• The design process
• Target groups and segmenting
• Segmenting
• Introduction to personas
• Personas
• Business targets: Branding and positioning
• Touch points
• Recap and outlook
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Recap: Analysis and design are
separate phases
Solution
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• Technology
• …
Assignment/
brief/…
Concept/
prototype/…
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Analysis and design are separate
phases
Solution
1. Analysis
• Market and users
• Business
opportunities
• Communication
and brand targets
• …
Assignment/
brief/…
Concept/
prototype/…Today 24.09
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http://grandburo.com/store/product.detail.php?pid=245
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PAGE
148
“Marketing is not the art
of finding clever ways to
dispose of what you
make. It is the art of
creating genuine
customer value.”Philipp Kotler
(Marketing guru)
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What is strategy?
SIDE 149
A goal
Mostly: Sell more, become
young and trendy
More rare: Increase the
sale of the product by x %
with young urban men
…and how to reach it
Young men should wear
diamonds more often
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Using design, visual arts, arts,
humanistic and cultural thinking,
psychology etc. to support
achievement of strategic
business goals (e.g. making more
money, raise awareness, create
sympathy, ...).
150
Strategic design
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Segmentation by behaviors and
attitudes – example FedExL
eve
l o
f p
rep
ara
tio
n
Desired level of personal interaction
From: Mulder, Steve: The user is always right: New Riders 2007
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1) Business results depend on satisfying users
2) You are not your user
3) Learning about users requires direct contact
4) Knowledge about users must be actionable
5) Decisions should be based on users
From: Mulder, Steve: The user is always right: New Riders 2007
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Election & students: possible personas
Fear struck
duty-voter
Hyperactive
non-voter
Happy go lucky
Marit, 22
from Bergen
• Marketing at BI
(2nd year Bachelor)
• Fadder for 1. års-
studentene
• Studies electrical
engineering at NTNU in
Trondheim (masters
degree, 3rd year)
• Plays in the band at
UKA
Andreas, 24,
from Skarnes
• Teacher student at
Høgskolen i Nesna
• Skibum
Stian, 21,
from Tromsø
”There doesn’t seem to be
a party that fits me.”
”What? Is there an
election? Excellent, that
will make for some good
jokes...”
”Is election day a public
holiday? I’m off kiting.”
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A brand is a
collection of
perceptions in
the mind of the
consumer
Definition of a brand / 2
8-Sep-10 154
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Combining process and channel
08.09.2010 155
Broadcast Direct mail Store Internet Call center
Awareness
Research
Evaluation
Purchase
Delivery
Post
evaluation
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“People use the word
guru because the word
charlatan is so hard to
spell.”
Peter Drucker
08.09.2010 156