Introduction to strategic design

Eirik Langås, Screenplay

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

Freia

08.09.2010

08.09.2010 6© SCREENPLAY

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

Task:

Form groups of 4-5 people

describe the perfect tool for

organising your group

meetings throughout this

autumn.

Time: 10 minutes

08.09.2010 8© SCREENPLAY

08.09.2010 9© SCREENPLAY

The design process (simplified)

SolutionCreative

phaseAnalysis

http://grandburo.com/store/product.detail.php?pid=245

Design is about creatingsomething with a purpose

Design overload? / Handbag

PAGE 14

Design overload? / Kitchen

15

SIDE 16

Three aspects of design

Visceral design:

Appearance

Behavioural design:

Pleasure and

effectiveness of use

Reflective design:

Rationalisation and

intellectualisation

SIDE 17

08.09.2010 SIDE 18

9/8/2010 19© SCREENPLAY

20

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)

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

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

Honda – Choir

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

9/8/2010 26© SCREENPLAY

Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”

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)

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

A strategy is an explicit goal and a vision of how to get there

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

Task: Increase the sale of diamonds with young, urban men

08.09.2010 31

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

SIDE 33

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

Strategy:

The plan

08.09.2010 © SCREENPLAY 35

Strategy vs. tactics: A (very) simplified

view

Tactics:

What you do

• 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

What is the difference?

08.09.2010 37© SCREENPLAY

08.09.2010 38© SCREENPLAY

From:Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78

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

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

“If showbusiness wasn’t a

business it would be called

show show.”

Woody Allen

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

• 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

Design before and now (simplified)

Product

Produkt with design

Before: Now:

Designed product

(ecosystem)

…

The devil is in the details

46

What does this

smell like?

What does this

sound like?

What does this

feel like?

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.

Three examples

08.09.2010 SIDE 50

|

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

9/8/2010 55© SCREENPLAY

(Service) design offers tools to solve

strategic issues

9/8/2010 56© SCREENPLAY

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”

9/8/2010 57© SCREENPLAY

Zeit – Architect

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

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/…

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/…

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“

Task: Design a vase.

08.09.2010 © SCREENPLAY 64

Task redefined: Design something to help people enjoy flowers in their homes.

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/…

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/…

Designing is about exploring

possibilities

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

Analysis and design are separate

phases

Solution

1. Analysis

• Market and users

• Business

opportunities

• Communication

and brand targets

• Technology

• …

Assignment/

brief/…

Concept/

prototype/…

9/8/2010 71© SCREENPLAY

Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”

9/8/2010 72© SCREENPLAY

Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”

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

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

”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

08.09.2010 © SCREENPLAY 75

Spot the

business student

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/…

| PLANNING IN A NUTSHELL,

15.11.2006

PAGE 78

| PLANNING IN A NUTSHELL,

15.11.2006

PAGE 79

Vor Ort: Tasks wie z.B. Diary

• 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

How do we use what we know?

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

• 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

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

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

Task: Segmenting

9/8/2010 87Screenplay

08.09.2010 © SCREENPLAY 88

• 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

• 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

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

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

Segmentation by behaviors and

attitudes T

rust in

th

eir

ow

n ta

ste

Readiness for new music styles

Levis – Odysse

Playstation – Double life

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

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

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

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

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/

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

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.”

Personas enable focus

Personas

ensure

empathy

Personas are good

for consensus

From: Mulder, Steve: The user is always right, New Riders 2007

Personas

create efficiencyFrom: Mulder, Steve: The user is always right, New Riders 2007

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

Personas come alive in different ways

Persona card

From: Mulder, Steve: The user is always right, New Riders 2007

Actual 1:1 persona-profiles

From: Mulder, Steve: The user is always right, New Riders 2007

Persona office space

From: Mulder, Steve: The user is always right, New Riders 2007

The most common German living room

08.09.2010 113

Use personas to identify issues…

© SCREENPLAY

Beckman, Sara L.& Barry, Michael (2007): “Innovation as a learning Process: Embedding Design Thinking”

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”

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

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

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?

08.09.2010 119© SCREENPLAY

From:Porter, M. E. (1996): What is Strategy, in: Harvard Business Review, November-December 1996, pp.61-78

08.09.2010 120

Example Hotel

© SCREENPLAY

08.09.2010 121© SCREENPLAY

Kim, W. Chan & Mauborgne, Renée (1997): “Value Innovation. The Strategic Logic of High Growth”

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?

One tool:Branding and positioning

08.09.2010 123© SCREENPLAY

8-Sep-10 124

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.

Denotation:

Direct meaning ≈

Connotation:

Indirect meaning ≈

126

Connotation:

Indirect meaning

Better detected

than described

127

8-Sep-10 128

A brand is a

collection of

perceptions in

the mind of the

consumer

Definition of a brand / 2

8-Sep-10 130

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

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

Customer journey: Example airline

13308/24/09 © MAKING WAVES

Home Airport 1 Flight Airport 2 Destination

Customer journey

13408/24/09 © MAKING WAVES

Customer

journey

Possible

touch points

Customer journey and the business

perspective

13508/24/09 © MAKING WAVES

Customer journey

Users goals

Touch points

Business targets

Business processes

Customer journey and the business

perspective

13608/24/09 © MAKING WAVES

Customer journey

Users goals

Touch points

Business targets

Business processes

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?

The buying process

08.09.2010 138

Source: http://www.flickr.com/search/?q=customer%20journey&w=all

Understanding the customer’s buying

process

08.09.2010 139

Awareness

Research

Evaluation

Purchase

Delivery

Post evaluation

Selection vs.

Combining process and channel

08.09.2010 140

Broadcast Direct mail Store Internet Call center

Awareness

Research

Evaluation

Purchase

Delivery

Post

evaluation

9/8/2010 Screenplay 141

Possible user stories for H&M

142

Magasin DM Web banner Search HM.com Shop

Tim

e Ad in magazine

Get offers by

mail

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

08.09.2010 143

Cultural and other experiences

On site

• Stationary

• Mobile

Memory channel

• Web

• Print

Source: http://www.archimuse.com/mw2003/papers/garzotto/garzotto.html

Preparation

• Web

• Mobile

• Print

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

Recap: Analysis and design are

separate phases

Solution

1. Analysis

• Market and users

• Business

opportunities

• Communication

and brand targets

• Technology

• …

Assignment/

brief/…

Concept/

prototype/…

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

http://grandburo.com/store/product.detail.php?pid=245

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)

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

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

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

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

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.”

A brand is a

collection of

perceptions in

the mind of the

consumer

Definition of a brand / 2

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Combining process and channel

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Broadcast Direct mail Store Internet Call center

Awareness

Research

Evaluation

Purchase

Delivery

Post

evaluation

“People use the word

guru because the word

charlatan is so hard to

spell.”

Peter Drucker

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