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What Marketers
Dr Ekaterina Khramkova, Founder & CEORussian Design Research Consultancy Lumiknows
Should
AboutKnow
Design Research.
:: 17 April 2009, Design & Advertising Industry in Russia, Central House of Artist, Moscow ::
2. What is the essence of design research approach?
1. Why design research?
2©2009 Russian Design Research Consultancy Lumiknows
Why
DesignResearch?
3©2009 Russian Design Research Consultancy Lumiknows
To understand your customer as deep as possible.
4©2009 Russian Design Research Consultancy Lumiknows
needsdrivers
values
Its values, drivers, anticipations and needs.
5©2009 Russian Design Research Consultancy Lumiknows
Its day-to-day experiences and environment.6
Its Weltanschauung…7©2009 Russian Design Research Consultancy Lumiknows
But how aboutmarket research?!
8©2009 Russian Design Research Consultancy Lumiknows
So far so good…
About 90% of them fail
despite thorough and expensive
Harvard Business Review, 2005Marketing Malpractice
Every year brings 30,000 of new products.
research.market
9©2009 Russian Design Research Consultancy Lumiknows
Whydoes it happen?!
10©2009 Russian Design Research Consultancy Lumiknows
Transformation of
consumptionculture
11©2009 Russian Design Research Consultancy Lumiknows
Traditional
«BRAND - CUSTOMER»
relationships model
BRAND
• When brands had no difficulties with reachingtarget audiences and
• Launched products which had always found its customer
CUSTOMER12©2009 Russian Design Research Consultancy Lumiknows
is over.
13
Traditional
«BRAND - CUSTOMER»
relationships model
BRAND
CUSTOMER©2009 Russian Design Research Consultancy Lumiknows
Brands experience real difficulties with
1. «delivering» its messages to the customer,
2. obtained information into a successful product or service.
«delivering»
«synthesizing»
14©2009 Russian Design Research Consultancy Lumiknows
Let’s talk about the first part.
15©2009 Russian Design Research Consultancy Lumiknows
Brands experience real difficulties with
1. «delivering» its messages to the customer,
2. synthesizing obtained information into a successful product or service.
«delivering»
ABUNDANCE OF PRODUCTS
16©2009 Russian Design Research Consultancy Lumiknows
ABUNDANCE OF BRANDS
17©2009 Russian Design Research Consultancy Lumiknows
3000 – Number of advertising messages people are exposed to per day.
Justin Kurby & Paul Marsden, Oxford, 2006
18©2009 Russian Design Research Consultancy Lumiknows
90% – Proportion of people who can skip TV ads and who do skip.
Justin Kurby & Paul Marsden, Oxford, 2006
19©2009 Russian Design Research Consultancy Lumiknows
3000 – Number of advertising messages people are exposed to per day.
Justin Kurby & Paul Marsden, Oxford, 2006
80% – Market share of video recorders with ad skipping technology in 2008.
Justin Kurby & Paul Marsden, Oxford, 2006
20©2009 Russian Design Research Consultancy Lumiknows
90% – Proportion of people who can skip TV ads and who do skip.
Justin Kurby & Paul Marsden, Oxford, 2006
3000 – Number of advertising messages people are exposed to per day.
Justin Kurby & Paul Marsden, Oxford, 2006
Now, how do you think, what is becoming
the mostfor Brand in its relationships with
valuable
Customer?
21©2009 Russian Design Research Consultancy Lumiknows
Attention.
22©2009 Russian Design Research Consultancy Lumiknows
of customerto your brand.
Attention
23©2009 Russian Design Research Consultancy Lumiknows
24©2009 Russian Design Research Consultancy Lumiknows
A wealth of information creates a poverty of attention.
Herb Simon, 1971
…Being able to capture someone’s attention at the right time is a very valuable asset.
Hal Varian, 2009Google’s Chief Economist,The McKinsey Quarterly,“Hal Varian on how the Web challenges managers”
25©2009 Russian Design Research Consultancy Lumiknows
A wealth of information creates a poverty of attention.
Herb Simon, 1971
…Being able to capture someone’s attention at the right time is a very valuable asset.
Hal Varian, 2009Google’s Chief Economist,The McKinsey Quarterly,“Hal Varian on how the Web challenges managers”
26©2009 Russian Design Research Consultancy Lumiknows
A wealth of information creates a poverty of attention.
Herb Simon, 1971
…Real competition no longer revolves around market share. We are competing for attention – mind share and heart share.
K. Nordstrom, J. Ridderstrale, 2002 Funky Business
Buthow to
attract an attention of
customer???
27
Very nice…
©2009 Russian Design Research Consultancy Lumiknows
http://www.flickr.com/photos/aknacer/2914095066/
Осторожно. МАГИЯ…
http://www.flickr.com/photos/aknacer/2914095066/
Magic #1.
28©2009 Russian Design Research Consultancy Lumiknows
If you are in need of an honestattention of your customer
…you should be honestlyattentive to him.
http://www.flickr.com/photos/aknacer/2914095066/29©2009 Russian Design Research Consultancy Lumiknows
Loyalty
Brand
Empathyhttp://www.flickr.com/photos/keesssss/109284197/ 30©2009 Russian Design Research Consultancy Lumiknows
Advertising is about selling stuff, but
creating values.
31©2009 Russian Design Research Consultancy Lumiknows
Branding is about
http://www.flickr.com/photos/keesssss/109284197/
Management will increasingly have to be based onthe assumption that neither technology nor enduse is a foundation for management policy. Theyare limitations. The foundations have to becustomer values and customer decisions on thedistribution of their disposable income.
Peter Drucker,Management Challenges for the 21st Century, 1999
32©2009 Russian Design Research Consultancy Lumiknows
Until recentrly:Whattechnical/organization/financial/manufacturingpossibilities fordesigning new productdo we have?(Technology- DrivenStrategy);
Now: How can we empathizewith our customer?/What shouldwe design to make ournew brand/productexperience meaningful and exciting? (Consumer-Driven Strategy).
33©2009 Russian Design Research Consultancy Lumiknows
You have folks marketing tomato sauce, forexample, who don’t make their own spaghettibut dine at fine Italian restaurants and havenot opened a jar of spaghetti sauce in theirown house in years.
Interview with Dev Patnaik, Author of Wired to Care: How CompaniesProsper When They Create Widespread Empathy, 2009
34©2009 Russian Design Research Consultancy Lumiknows
35©2009 Russian Design Research Consultancy Lumiknows
«synthesizing»
Brands experience real difficulties with 1. «delivering» its messages to the customer,
2. obtained information into a successful product or service.
Let’s talk about the second part.
Only four of them had managedto meet plan in terms of timing, functionality of new products andmarket share.
We investigated into fourteen largecompanies with an annual sales volume
from $500 million to $10 billion.
Harvard Business Review, 2007In search for new generation's product. 36©2009 Russian Design Research Consultancy Lumiknows
Only four of them had managedto meet plan in terms of timing, functionality of new products andmarket share.
We investigated into fourteen largecompanies with an annual sales volume
from $500 million to $10 billion. WHAT CAUSED
THIS?
37
Harvard Business Review, 2007In search for new generation's product.©2009 Russian Design Research Consultancy Lumiknows
It turned out, every time when in an NPD processdifficulties occurred,
Harvard Business Review, 2007
the roots of the problems could easily be found atthe stage of early planning, when thecompany had to decide
the new product will have.
what design
38©2009 Russian Design Research Consultancy Lumiknows
“The Fuzzy Front End of Innovation”
39
– Identifying customer needs;– Synthesizing the needs in the form of design brief.
©2009 Russian Design Research Consultancy Lumiknows
http://www.flickr.com/photos/jurvetson/2542450115/
“The Fuzzy Front End of Innovation”
40
– Identifying customer needs;– Synthesizing the needs in the form of design brief.
– Establishing target specifications;– Concept generation;– Concept selection and testing;– Final specifications;– Project planning;– Economic analysis;– Etc.
©2009 Russian Design Research Consultancy Lumiknows
http://www.flickr.com/photos/jurvetson/2542450115/
Adapted from: Karl Ulrich, Steven Eppinger, Product Design & Development
«Phase Zero»,
at which
customer needs are identified and interpreted is
the most dangerous
in new product development.
41©2009 Russian Design Research Consultancy Lumiknows
It is herewhere the main reason behind
new products
lie.failure
42©2009 Russian Design Research Consultancy Lumiknows
The main reason behind new products failure:
24% Inadequate market analysis (i.e. analysis of customer needs);
16% Product problems of defects;14% Lack of effective marketing effort;10% Higher costs than anticipated;9% Competitive strength and reaction;8% Poor timing of introduction;6% Technical or production problems;13% All other causes.
Robert Cooper, Winning At New Products
©2009 Russian Design Research Consultancy Lumiknows 43
an innovative product idea.
Traditional marketingis good at analyzing
existing market ideas, but has problems with
generating
44©2009 Russian Design Research Consultancy Lumiknows
If I’d ask people what they wanted, they would have said a faster horse.
Henry Ford,Beginning of the 20th c.
45©2009 Russian Design Research Consultancy Lumiknows
If I’d ask people what they wanted, they would have said a faster horse.
Henry Ford,Beginning of the 20th c.
If you’d asked people what they wanted in a VCR, they might have eventually suggested something like “super-fast rewind”. … You might set out to create the fastest-rewinding VCR in the world. But just as you released your fancy new model, you would have been blown away by the arrival of the first DVD players – which, along with sporting superior image quality, sound, capacity and improved reliability, require no rewinding at all!
Tom Kelley, The Ten Faces of Innovation, Beginning of the 21st c.
46©2009 Russian Design Research Consultancy Lumiknows
Companies have really big difficulties
customers needsto create a product customer will prefer despite
with identifying and synthesizing
an abundance of choice.
47©2009 Russian Design Research Consultancy Lumiknows
How tomore effectively synthesize
needs??
48
So what?..
©2009 Russian Design Research Consultancy Lumiknows
http://www.flickr.com/photos/jurvetson/2542450115/
Magic #2.
49©2009 Russian Design Research Consultancy Lumiknows
Shift from narrow defined customerto total human experience.
50©2009 Russian Design Research Consultancy Lumiknowshttp://www.flickr.com/photos/aknacer/2914095066/
51©2009 Russian Design Research Consultancy Lumiknows
http://www.flickr.com/photos/dogfaceboy/1095640322/52©2009 Russian Design Research Consultancy Lumiknows
Transformation of
consumptionculture
53©2009 Russian Design Research Consultancy Lumiknows
1. To control customer’s attention is getting harder –she/he manages “the marketing space” on her own;
2. Marketing has problems with The Fuzzy Front End of Innovation at which customer needs are identified and new product ideas are generated.
54
Transformation of
consumptionculture
©2009 Russian Design Research Consultancy Lumiknows
55
Transformation of
consumptionculture
©2009 Russian Design Research Consultancy Lumiknows
and, as a result,
Fundamental changes in designer’s competencies.
http://www.flickr.com/photos/redgum/238095322/
New expertise of
designer:
CUSTOMER understanding
DESIGN BRIEF Synthesizing56©2009 Russian Design Research Consultancy Lumiknows
Purpose of
designresearch:
http://www.flickr.com/photos/redgum/238095322/
CUSTOMER understanding
DESIGN BRIEF Synthesizing57©2009 Russian Design Research Consultancy Lumiknows
Design in Technology program, University of Cambridge, Judge Institute of Management, 2004
Visual imagesBar charts & text
Integrated to design development teamDetached research team
Open ended dialogueClosed ended questions
Focuses on new possibilitiesFocuses on the “known”
Raw data (reality)Sanitized data (aspiration)
Identifies “user experience”Identifies “preferences”
Observe behaviours first handSelf-reporting of behaviours
In-contextArtificial setting
Design Research Techniques
Market Research Techniques
58©2009 Russian Design Research Consultancy Lumiknows
approach.
designresearch
The essence of
59©2009 Russian Design Research Consultancy Lumiknows
flickr.com/photos/bacillus/2743928941/
flickr.com/photos/myklmabalay/30178916
In the special way of seeing the situation
http://www.flickr.com/photos/mllemathilde/1428593831/60©2009 Russian Design Research Consultancy Lumiknows
flickr.com/photos/bacillus/2743928941/
flickr.com/photos/myklmabalay/30178916
http://www.flickr.com/photos/kiolero/745968385/
http://www.flickr.com/photos/theloser091/2186539998/in/set-72157606514104932/
through people’s eyes.
http://www.flickr.com/photos/firenzesca/2494845630/61©2009 Russian Design Research Consultancy Lumiknows
In the unique ability to work with ill-defined information
62©2009 Russian Design Research Consultancy Lumiknows
synthesizing new from chaos.
63©2009 Russian Design Research Consultancy Lumiknows
Despite an abundance of data, most
companies do a poor job ofpredicting the behavior of theircustomers. Even companies that take thegreatest trouble over their predictions arecorrect only 55% - a result that
Harvard Business Review, March 2006
hardly justifies the costs of having a customer relationship managementsystem in the first place…
64©2009 Russian Design Research Consultancy Lumiknows
Design research methods
Laura S. Richardson «Deconstructing Design», ITT, 2008. Sources: M3 Design, frog design, IDEO, Continuum, IIT, TU Delft, SmartDesign, Nokia and others.
65©2009 Russian Design Research Consultancy Lumiknows
The real art of discovery consists not in finding new lands, but in seeing with new eyes.
Marcel Proust
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http://www.flickr.com/photos/kenilio/172744389/sizes/o/
You may use these ones…
67©2009 Russian Design Research Consultancy Lumiknows
«Panoramic View»
http://www.flickr.com/photos/_miss_lucky_/2579436279/http://www.flickr.com/photos/7539598@N04/3085177911/
But you would be better of using something like these.
«Wow! I see this for the first time in my life!»
68©2009 Russian Design Research Consultancy Lumiknows
Design research is about seeing things seen many times before in a completely new light.
http://www.flickr.com/photos/jo92/1659953189/
69©2009 Russian Design Research Consultancy Lumiknows
In other words, to see behind day-to-day
«usual life situations»
opportunities of creating new.
«of an average customer»
70©2009 Russian Design Research Consultancy Lumiknows
What do you think this is?
Thoughtless Acts? Jane F. Suri, IDEO 71©2009 Russian Design Research Consultancy Lumiknows
And this?
Thoughtless Acts? Jane F. Suri, IDEO 72©2009 Russian Design Research Consultancy Lumiknows
Thoughtless Acts? Jane F. Suri, IDEO
Or these?
Thoughtless Acts? Jane F. Suri, IDEO 73©2009 Russian Design Research Consultancy Lumiknows
Images from day-to-day “usual” life?
74©2009 Russian Design Research Consultancy Lumiknows
No, these are opportunities of creating thousands of innovative brands, products, services, based on real life customer needs.
http://www.flickr.com/photos/60538638@N00/2629847447/
75©2009 Russian Design Research Consultancy Lumiknows
Discovery consists of seeing what everybodyhas seen and thinking what nobody hasthought.
Albert Szent-Gyorgyi
76©2009 Russian Design Research Consultancy Lumiknows
http://www.flickr.com/photos/60538638@N00/2629847447/
Abundance of
opportunities.
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Good news..
Сharles H. Duell, The commissioner of the United States Patent
and Trademark Office :
«Everything that can beinvented has been invented».
78©2009 Russian Design Research Consultancy Lumiknows
Сharles H. Duell, The commissioner of the United States Patent
and Trademark Office :
«Everything that can beinvented has been invented».
79©2009 Russian Design Research Consultancy Lumiknows
It was said in
1899...
If we base ourselves in technologies,- the end of innovations is really close.
But if we originate in humans, – opportunities of creating new are endless…
80©2009 Russian Design Research Consultancy Lumiknows
Laura S. Richardson, «Deconstructing Design», ITT, 2008.
81
Launching newproducts and servicesis the No.1 driver ofrevenue growth;
By 2010, productsrepresenting morethan 70 per cent oftoday's sales will beobsolete due tochanging customerdemands andcompetitiveofferings.
Deloitte Research, Global Manufacturing Study©2009 Russian Design Research Consultancy Lumiknows 82
Customeris ready to these figures…
Is your brand prepared to them??
©2009 Russian Design Research Consultancy Lumiknows 83
http://www.flickr.com/photos/aknacer/2914095066/
Are you ready to empathize with your customer?
Do you have enough expertise to understand his/her total human experience??
©2009 Russian Design Research Consultancy Lumiknows 84
85©2009 Russian Design Research Consultancy Lumiknows
but createmeaningful
values for them?
Is your brand ready to not just sellpeople your
product,
86©2009 Russian Design Research Consultancy Lumiknows
Thank you for your time.
©2009 Russian Design Research Consultancy Lumiknows
www.designresearch.ru
Dr Ekaterina [email protected]
©2009 Russian Design Research Consultancy Lumiknows
flickr.com/photos/mllemathilde/1428593831/