THE ROLE OF

DESIGN THINKING
A keynote by Pieter Baert in spring 2015 for the
financial industry.

pieter baert
 About Pieter Baert

From To

MAKIN MAKIN
G >
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PEOPLE THINGS
WANT PEOPLE
THINGS WANT
Online marketing & digital Designing digital services &
 1

What actually
is design
thinking?
And what it’s not.
We are talking about
design in its broadest
meaning.
 Design thinking is often
confused with visual
design
 “Design is not just what it looks like
and feels like. Design is how it works.”

Steve J obs, co-founder Apple

“Everything
is
designed.”

Start stop >lower emissions >lower taxes >I can afford driving pleasure
 “Even my car
insurance
broker uses
design.”

Minor car accident (stress) >paperwork (confused) >printed stickers (easy)

“We moved from
thinking of
ourselves as
designers to
thinking of
ourselves as
design thinkers.”
David Kelley, co-founder Ideo
 Design thinking is a
user-centered
approach
to problem solving
 Actually design
thinking is less about
thinking and more
about doing
!
Key elements

1. People-centered
2. Highly creative
3. Hands-on
4. Iterative
1
People- centered
You start from what people, users, customers, consumers,
(…) need or want to do. Their motivations and the problems
they are trying to solve.

Empathy is key. It’s not about you. You need the ability to
understand and share the feelings of others.
2
Highly Creative
Design thinking stimulates you to look at situations
differently and come up with new solutions, that go
beyond and improve existing alternatives.

Integrative thinking is key. You need the ability to look at

all the different aspects of a problem
3
Hands- on
Stop discussing, start working. Make ideas tangible.
Prototyping is thinking with your hands. Test your
hypnotises.

Failure is a (necessary) part of the process in order to

succeed. Experiments with trial and error are key.
4
Iterative
The road to success does not follow a straight line. The more
you are able to loop through “understand > create > learn”
cycle, the higher chance you have for good results.
Google Ventures ‘Design Sprint’
 How design feels

“The Process of Design Squiggle” by Damien Newman, Central Office of Design

 2

How do you
apply design
thinking?
Key pillars, model & process
When can design
thinking be
helpful?
?
‘Wicked’ problems
Problems that are ill-defined: both problem and solution
are unknown at the beginning. A large part of the problem
solving is actually defining the problem.

And/or tricky: it involves quite a bit of risk, as you are

leaving the comfort zone of the organisation.
!
Not every problem
Design thinking (creative, intuitive, emotional) is not the
answer to every single problem.

For some question you will need rational thinking,

spreadsheets, powerpoint and wo/men in suits to come to a
valid answer. >> e.g. acquiring a local competitor
 Innovation that is also feasible and viable

Business
- viability -

Innovation
People
- desirability -

Technology
- feasibility -

ideo.com, creating new, innovative avenues for growth, grounded in business viability and market desirability.
Zoom in to the
design thinking
process
!
No ‘one size fits all’ approach
There is not one single proces or toolkit that serves every
single case. There is a wide variety of processes and tools
that people customise to serve their needs.

The five step process from Stanford Design School is a

model that is broadly used and has proven its value.
The Human Centred Design process

The Human Centered Design Toolkit by IDEO

 An iterative cyclic proces

Empathise Ideate

Define Prototype

Test

The Design Thinking Proces by St anford Design School

1
Empathise
Understand the experience, situation and emotion of the
person who you are working for

•
Observe users and their behaviour in the context of their lives.
•
Engage with people in conversations and interviews. Ask why.
•
Watch and listen: ask someone to complete a task and tell you
what they are doing
2
Define
Process and synthesise the findings in order to form
a user point of view that you will address

•
User: develop an understanding of the type of person you are
designing for
•
Needs: synthesise and select a limited set of needs that you think are
important to fulfil
•
Insights: express insights you developed and define principles
3
Ideate
Focus on idea generation. You translate problems into
solutions. Explore a wide variety and large quantity of
ideas to go beyond the obvious solutions to a problem.

•
Creativity: combine the un/conscious with rational thoughts and
imagination
•
Group synergy: leverage the group to reach out new ideas an build
upon other’s ideas
•
Separate the generation and evaluation of ideas to give imagination
a voice
4
Prototype
Build to think. A simple, cheap and fast way to shape
ideas so you can experience and interact with them.

•
Start building: Create an artefact in low resolution. This can be a
physical object or a digital clickable sketch. Do it quick and dirty.
•
Storyboard: create a scenario you can role play in a physical
environment and let people experience your solution
5
Test
Ask for feedback on your prototypes. Learn about your
user, reframe your view and refine your prototype.

•
Show: let people use your prototype. Give it in their hands and let
them use it. Listen to what they say.
•
Create experiences: let people talk about how they experience it
and how they feel
 3

How does it benefit

financial
institutions?
The benefit of design thinking in the financial industry.
 “If you always do
what you always
did, you will always
get what you always
got.”
Albert Einstein, theoretical physicist
My father in “The
law was a relationship
local bank
branch with your
manager. He customers
is a walking
CRM is
database. changing”
 “People adopt new
technology, discover new
solutions and develop
different expectations”
 “Which triggers
the need for new
approaches in the
financial
industry”
!
Challenges
Some key challenges in the financial industry:

• Threat of disruption by ‘FinTech’

• High customer acquisition costs
• Lower customer loyalty
• Increasingly difficult to up-sell
• Reduced switching costs
Research on Millenials >link
Bain, Customer Loyalty in Retail Banking: Global Edition 2014
The role of digital channels worldwide

Bain, Customer Loyalty in Retail Banking: Global Edition 2014

The human touch remains important

Bain, Customer Loyalty in Retail Banking: Global Edition 2014

The uprise of smartphones & mobile internet
3.1

Design thinking
helps you
innovate
A
Big bets
With PowerPoint presentations full of statistics and customer
insights, you need to make big bets on new products,
technologies, and premium services that go to market and
flop, often for reasons that are hard to figure out.
B
A lean approach
Design thinking stimulates you to be highly creative and at
the same time allows for quick validation of those
concepts with the target customers and business model (as
such limiting potential risk).
3.2

…helps you
differentiate from
competitors
A
Serving is selling
As it becomes increasingly harder to differentiate on
price, product range or local presence, “customer
experience” becomes a key differentiator for
banks. “Serving is the new selling."
 "Most banks recognise that many customers struggle to
! consistently save, spend and invest their money wisely, (…)

(…) the traditional role of banks was to provide services and

enforce terms and conditions, and not to worry about whether
customers were making smart choices.

(…) taking a more proactive stance, with offerings that make

it easier for people to stick to good behaviours and achieve
their personal financial goals."

IDEO, Retail banks turning to Design

3.3

…helps you
increase customer
satisfaction
>
Customer retention
A customer centric mindset helps you improve the
customer experience over different channels and touch-
points and positively impacts customer satisfaction.

Customers are more loyal, buy more and higher margin

products from you. It also improves your net promotor score.
(ambassadorship)
/
But it has it’s limits…
1. It’s good to skip endless research, meetings and strategy
sessions, but under-thinking is as bad as over-
thinking.

2. Great ideas that benefit consumers require a viable

business strategy built into an idea

3. Every problem is different. There is not one proces or

toolset to standardise design thinking.
 !

What should
you remember?
Key take outs
 1

Design thinking is a user-

centered approach to problem
solving.
Empathy is key.
 2

Design thinking is especially

helpful for “wicked” problems.
 3

Design thinking is a step-by-

step process that is repeated
over multiple iterations.
 4

Design thinking is about

doing. Let’s start together
today.
QUESTIONS?
SHOOT.
Pieter Baert
+32 473 667 861
[email protected]

pieter baert