Design for

Innovation

Lecture 1
Introduction, The three Design
perspectives & Design Thinking

Céline Abecassis-Moedas
 Céline
Abecassis-Moedas
Professor of Strategy and Innovation Management
&
Researcher on Design, Design Management & Design
Thinking
&
Dean for Executive Education @ Católica Lisbon School of
Business Economics

Non-Executive Director @ CUF, Vista Alegre Atlantis &

Lectra

1 1
How design contributes
to innovation
The book is evidencing the ways in which
designs contributes to better business.
From higher return on investment, efficiency in
operations, aesthetic considerations, emotional
value and efficient interaction of design from
inside or outside the firm.
Design that is coming from the world of arts is
increasingly entering the world of business
and is here to stay!!!

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 Agenda

1 The Course

2 Design for Innovation

3 Design Thinking

3
 Course Organization

3 hours 18 hours & All course Readings

per week 12 sessions information for each Prepare all
on Moodle class readings
Expect cold
calling!

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 Program

1 to 5 8 to 10

6-8

30-Oct Introduction & The three design

11 - 12
24-Nov Guest Speaker
perspectives Lecture Design Management
Lecture Design Thinking 17-Nov Lecture Design-driven Innovation
03-Nov Design Thinking Workshop 27-Nov 5. Stella McCartney on the
2. Chef's Table - Grant Achatz at
(ExperienceInnovation Learn) Business of Sustainable Design
Alinea chef as designer (Netflix)
(The Business of Fashion
06-Nov Design Thinking Workshop (C)
Podcast) (C)
(ExperienceInnovation Learn) 20-Nov 3. Verganti: Innovating through
Guest speaker
Design (A) 11-Dec 8. Abstract: The Art of Design -
10-Nov Design Thinking Workshop 04-Dec 6. McKinsey: The Business Value
4. Managing Creativity in Luxury Ilse Crawford (Netflix) (C)
(ExperienceInnovation Learn) of Design (A)
Fashion Houses: Raf Simons at
7. Abstract: The Art of Design - 12-Dec Conclusion: The three
13-Nov 1. Brown: Design Thinking (A) Dior (C)
Ian Spalter, Digital Product perspectives and domains of
Guest Speaker 24-Nov Guest Speaker
Design (Netflix) (C) . 11 - 12
application

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 Course Grading

• Case study group assignment: 30%

• Article individual quizzes: 20%
• Final Individual Exam: 50%

* Groups of 5 to be defined today.

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 What is innovation?

Different types INNOVATION

of Innovation:
know what these are and an example

• Product Innovation
MULTIDIMENSIONAL
• Service Innovation
• Process Innovation
• Business Model Innovation
change the way how you sell your product - current trend is to change the product into a service
• Source of supply EVERY SMALL BIT HELPS
when you change the raw materials

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 Drivers for Innovation
most innovations are a result as a mix of both

for pharmaceutical for example it is mostly demand / pull: example covid

very few cases are only 100% either or

Demand or market pull: Technology push:
Development of new Utilisation of known
products and processes technologies to develop
as a direct result of innovative products and
market demand processes

not all market pulls find a technology

and not all technologies find a market

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 What is design?

“ Design is what links creativity and

innovation. It shapes ideas to become
practical and attractive propositions for
users or customers. Design may be
described as creativity deployed to a
specific end.
”
The Cox Review

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 What is design?
design means a lot of different things

as a function

DESIGN IS THE PROCESS DESIGN IS THE FINAL “DESIGN MIX”: DESIGN OVERLAPS (OR
BY WHICH STAGE IN THE R&D INTERACTS) WITH
EFFECTIVE OPERATION,
INFORMATION (AN IDEA) PROCESS, WHICH SAFETY, EASY OPERATIONS,
IS TRANSFORMED INTO TRANSLATES THE MAINTENANCE, VALUE MARKETING AND R&D.
AN OUTCOME DEVELOPMENT INTO FOR MONEY AND
(PRODUCT OR SERVICE). THE FINAL PRODUCTS AESTHETIC
FOR THE CONSUMER. CONSIDERATIONS… TO
SATISFY CUSTOMER
NEEDS.

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 What is design?
why is it that it is made somewhere else than designed?
- it is mandatory to write: "made in china"
- designed in california increases the perceived value
-

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What is the role of design in
the top companies?

Apple is the largest company in the world

https://companiesmarketcap.com

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 What is design?

“ Good design is about looking at everyday things with new

eyes and working out how they can be made better. It is
about challenging existing technology.

James Dyson – Inventor and Entrepreneur

”

design is a magic wand, which allows you to increase

your prices by 5 to 10 times (her words)

example: dyson hairdryer which costs unmengen mehr lan

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 What is design?

“ The role of the designer is to breathe soul into

the lifeless product of the machine.
”
Walter Gropius - Founder of the Bauhaus, Architect and Designer

“ We (designers) are here to inject art into commerce.

Tibor Kalman, Designer
”

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Design-based Industries

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 Can also be used in services
this is a hospital

SERVICES

CUF Tejo

P 06 Studio + CUF Hospitais -

Lisboa, Portugal

signs inside the hospital are also part of design

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 Can also be used in services

SERVICES

Starbucks Coffee

Nichiha + Starbucks Store

- North Carolina, USA

starbucks not only changed the product but also the ambience
- so the whole service was changed
- magic wand
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 Can also be used in services

RETAIL

Samsung Store

Samsung Concept Store –

South Korea, Seul

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Design in Business Performance
Design-led firms vs Non-design-led companies performance

The business value of design, McKinsey (2018)

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if you invest in design heavy companies, you have more roi
Design in Business Performance

The business value of design, McKinsey (2018)

basically: investing in design is always a good idea

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- companies that invest in design have a better financial performance

but it is hard to show the causality

Design in Business Performance

Design-led firms win the business advantage. (2016). Adobe.com

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 Where do we stand?

50% 40%
Admitted that they have no The companies surveyed
objective way to assess or still aren’t talking to their
set targets for the output of end users during
their design teams. development.
The business value of design, McKinsey (2018)

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 Design as a Market Opportunity
In the United States, the difference in number of design patents when comparing with utility patents keeps
being very big, even though the number of design patents has been increasing -> Opportunity

U.S. Patent Grants

450000
400000
350000
300000
250000
200000
150000
100000
50000
0
2016 2017 2018 2019 2020
Design Patent Grants 28873 30870 30497 34794 34877
Total Patent Grants 333583 351403 339992 391103 388900
Design Patent Grants Total Patent Grants

there is an opportunity to create more design patents

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but there are also other ways to protect designs (instead of patents)
 Design as a Market Opportunity

Consulting firms are

acquiring design firms. Why?
- to be able to offer a different type of methodolgy
- to have access to more knowledge etc
- to structure and make recommendations in a different way (design based)

https://sifted.eu/articles/innovation-agency-acquisitions
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 The 3 Design Approaches:

DESIGN THINKING DESIGN-DRIVEN DESIGN

INNOVATION MANAGEMENT

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 Design Thinking

01 Problem Solving Method

Inspired by the way that designers

02 think and work

03 A 6-step methodology

Useful in all innovation and

04 problem-solving contexts
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 Design-driven Innovation

• Design is a tool for differentiation.

Alternative to:

• Appropriate in radical innovation - Radical innovation pushed

by technology
contexts. - Incremental innovation

• The product carries an emotional

value rather than a utilitarian one.

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 Design Management

When incorporating design in an

organization, for it to bring innovation
and improved performance it must

Slif Citrus Squeezer - Alessi

be properly managed.
The key elements are:
a) Design organization
b) Relationship between design and
other functions
c) Design Roles
e.g. zara and h&m have anonimous designers whereas gucci
has famous designers

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Design
Thinking

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 Why is Design Thinking in Business
Schools?
Design Thinking proliferating in Business
Schools:
• Stanford Business School
• Harvard Business School
• INSEAD
• Berkeley Haas
• U. Virginia Darden
• MIT Sloan
• Yale School of Management
• Católica Lisbon!
Check HBR Issue (Sep 2015)
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 Design Thinking

“
Design thinking is about accelerating innovation to create better
solutions to the challenges facing business and society. It starts
whose problem are we trying to solve
- who are the people
- what are their problems

with people – what we call human-centered design – and

applies the creative tools of design, like storytelling, prototyping,

”
we have a set of tools
and experimentation to deliver new breakthrough innovations.
Tim Brown, CEO IDEO

ideo are one of the top design consultancies in the world

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 Design Thinking

“
Design is not a one-shot vaccine; it's an 'innovation fitness
program’ that puts an organization on top of its game. It is not an
‘event’, it is a way of thinking, communicating and doing every
day.
”
Heather Fraser, The Rotman School of Business, University of Toronto

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 Design Thinking

Human-centered! starting with people is very different than doing a survey: we have to actually observe them
in the context (observation is very important in design thinking)

It is about people. It begins

by observing, studying,
examining:

• The needs;
• The dreams;
• The behaviors.
Don Norman
The Principles of Human-Centered Design

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 Design Thinking
We start
What do people here!
desire?
Desirability
start by desirablity and then make it doable
We end
here!

What is
technically
and What is
organizationally financially
feasible? Feasibility Viability viable?

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 Design Thinking
6–step methodology of Design Thinking

Frame
opportunities
Brainstorm ideas
abstract
Form insights
concrete
Observe people
Try experiments

Define the challenge

Inspire Ideate Implement

See: https://www.youtube.com/watch?v=M66ZU2PCIcM&t=192s&ab_channel=AlfonsoNeri
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 Inspire Ideate Implement

STEP 1 Qualitative Research

Techniques

• Observation and
immersion.
• Interviews.
Define the challenge that must be done in a • Focus groups.
human-centered way. • Content analysis of
visual and textual
Instead of starting with a specific challenge, we materials.
start with “who are we serving?”. Who would • Oral history.
benefit from this solution?
what is the pain that people are experiencing

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 Inspire Ideate Implement

STEP 2 Qualitative Research

Techniques
we have more to learn from ppl who are outliers
- bcs through them we could identify the most interest needs • Observation and
immersion.
Interviews.
Observe people, preferably extreme users, so that •
• Focus groups.
the solution can create the best experience for the • Content analysis of
visual and textual
user persona. This is done by using qualitative materials.
research techniques, with the objective of • Oral history.
developing empathy, questioning assumptions and
inspiring new solutions.

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 Inspire Ideate Implement

STEP 3 Qualitative Research

Techniques

• Observation and
immersion.
• Interviews.
Form insights based on qualitative research • Focus groups.
techniques. Insights translate individual stories • Content analysis of
visual and textual
into overarching truths about the user. materials.
An insight is not: a slogan, a mission statement, a solution. • Oral history.
Instead, it is: authentic, non-obvious, revealing

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 Inspire Ideate Implement

STEP 4

When framing opportunities, we must venture into

the realm of the abstract to explore ideas that have
never existed before, and doing so, create value for
the users at a whole different level. If you try to
solve the opportunity from the realm of the
concrete, youʼre necessarily limited to the solutions
you have already imagined.
where is the space for us to create smth new
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 Inspire Ideate Implement

STEP 5

Following sacred rules of brainstorming:

1. Defer judgment
2. Encourage wild ideas
3. Build on the ideas of others
4. Stay focused on topic
5. Be visual
6. One conversation at a time
7. Go for quantity

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 Inspire Ideate Implement

STEP 6

Experimentation will help an abstract and innovative idea to evolve into the practical realm.

A great experiment is:

• Low Risk: Your idea should be novel, exciting and easy to understand by someone not in the process or topic.
• Quick & Easy: Your idea should meet a real need and solve a real problem.
• Generative: Your idea should be relevant to the original design challenge.

This phase is also known as Prototyping. find solutions, test, go back to user

NOTE:
The 6 steps in design thinking are not linear. They can occur simultaneously and be repeated
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An application of
Design-Thinking 6-step
methodology

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 Bank of America: Keep the Change

In 2005, Bank of America launched “Keep the Change,” a program

that rounds up purchases on Bank of America sponsored debit
cards to the nearest dollar and transfers the difference to a
savings account. With this functionality the users would be able to
save money without having the “urge” of spending it.
Deposits are made on a daily basis to allow users to track their
savings through the Online Banking portal at any time to see their
progress.

“Save automatically from everyday purchases”

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 Inspire Ideate Implement

STEP 1

Keep the Change

Define the challenge: Bank of America asked IDEO to expand the

number of products and to attract new customers with an emphasis
on boomer women with kids.

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 Inspire Ideate Implement

STEP 2

Keep the Change

Observe people: the team observed that some people were fudging
their math, “rounding up” their bill payments, so that in the end they
would be adding a buffer in their banking accounts. This behavior
exemplified the common desire for and struggle around saving, that
was felt by many mothers.

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 Inspire Ideate Implement

STEP 3

Keep the Change

Form insights: A mother’s age does not define her financial behavior,
instead the life stage of her children becomes the defining factor.
Many people round up their bill payment for speed, convenience and
peace of mind. Many mothers had difficulty saving what money they
had, for lack of resources or willpower.

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 Inspire Ideate Implement

STEP 4

Keep the Change

Frame opportunities: “How might we integrate savings into people’s

everyday lives to help them save effortlessly?”

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 Inspire Ideate Implement

STEP 5

Keep the Change

Brainstorm ideas: “round up” or “keep the change” allowed customers

to save while they spent. The products rounds up purchases made
with Bank of America Visa card to the nearest dollar, transferring the
difference from the checking account to the savings account
automatically.

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 Inspire Ideate Implement

STEP 6

Keep the Change

Experimentation: Bank of America did several small pilots before

launching (prototype).
Result: 12 million customer saved more than 3.1 Billion and allowed to
bring new customers (mothers)

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KEY LEARNINGS Keep the Change

• A human and user centered view is effective in problem solving.

• It can be applied to everyday situations.
• Characteristics of ʻDesign Thinkersʼ: empathy, integrative thinking,
optimism, experimentalism, collaboration.

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Any questions?

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