ENTREPRENEURIAL MANAGEMENT

MGT 246 Introduction to

Entrepreneurship

Professor Haibo LIU

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Asynchronous session: method

Questions:

1. Who are the cofounders of method? Describe their background and personality.

2. How are their skills and background complementary?

3. What was the inspiration for creating the company?

4. Who are method’s competitors? How is method’s positioning unique?

5. What have you learned from their experience as entrepreneurs?

Examples of BAD design

What Made them Successful?

 method

 Coca Cola  Apple’s products

Breakout Room 1. Selection your team

number 2. Introduce yourself 3. Work on this question 4. You have 5 mins

Design driven innovation and Method

 Co-founded by chemical engineer Adam Lowry and designer/marketer Eric Ryan

 Method has emphasized fashionable and appealing product dispensers and environmental friendly products

Design Thinking and Coca Cola

 The evolution of Coca Cola bottles

 Which design is significantly different from its predecessors?

Poll from Socrative

 Go to https://www.socrative.com/

 Click “Login” and “Student Login”

 Room number: UCRINNOV8

 Name as in roster: First name, Last name. IMPORTANT for participation points!

 Click “finish quiz” after you finish

Design Thinking and Coca Cola

 The evolution of Coca Cola bottles

 Which design is significantly different from its predecessors?

 1916 - Birth of the Contour Bottle

Design Thinking

 Coca-Cola was becoming easily confused with ‘copycat’ brands.

 Coca-Cola called for a bottle that could be recognized when broken on the ground or by touch in the dark.

 The contour bottle is patented in 1915 by the Root Glass Company of Terre Haute, Indiana

Design Thinking and Apple

 Apple’s iPod was a comparative latecomer product to the mp3 player market

 Yet it created the standard for the others to follow because of the uniqueness of the look and feel

 People do not buy things only to meet their needs: there are important psychological and cultural factors

 Its design owns a great deal to Steve Jobs and Jonathan Ive

Recent Focus on Design Thinking

 Articles in design thinking appear in The Economist, Harvard Business Review, Business Week, The Wall Street Journal, and The New York Times

 Litigations among firms are on the rise. For example, lawsuits between Samsung and Apple are design related

Design Thinking

 The nomenclature is more appropriately attributed to the innovation consulting firm IDEO and its leadership, founder David Kelley (Kelley and Littman, 2005), and more recently, current chief executive officer Tim Brown (Brown, 2009).

 IDEO’s own strategy as a firm has reflected the evolution of design thinking itself: although originally focused on product development, it has expanded to include the design of services, strategies, and even educational and other social systems.

Design Thinking

 A human centered innovation process that emphasizes observation, collaboration, fast learning, visualization of ideas, rapid concept prototyping, and concurrent business analysis

~ Thomas Lockwood, former president of the Design Management Institute

 Bringing designers’ principles, approaches, methods, and tools to problem solving.

~ Tim Brown

Design Thinking - challenges

 The problems in design lacked both definitive formulations and solutions and were characterized by conditions of high uncertainty.

 It is not so much about “what is the best solution”, it is more about “what is the best question to ask”

 Hoerst Rittel (1972) first called attention to the “wicked” nature of many design problems.

Design Thinking

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Design Thinking - Takeaways

View of the Design Thinking Process

Sources of Innovation

 Identifying a need which no one has worked on before or finding novel ways to meet an existing need lies behind many new business ideas.

 Knowledge push: Research and development (R&D) in laboratories, science facilities and universities in the public and private sectors generate new knowledge every minute

 Need pull: “Necessity is the Mother of invention”. Usually comes in at mature stage in industry or product lifecycles.  Examples: Amazon, Zipcar, WhatsApp, etc.

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Design Driven Innovation

©2015 John Wiley and

Sons

Locate: market pull innovation

Design Driven Innovation

©2015 John Wiley and

Sons

Design Driven Innovation

 Design driven innovation (Verganti, 2009) in addition to technology driven

 Design that gives meaning to the shape and form of products, or the emotional aspects of services

 Usually features and characteristics that the customers didn’t know they wanted

 Usually not due to knowledge or technology push

Design Driven Innovation

 From product design to service or business model design

 Restaurant: moves from emphasis on food to the entire experience, including the food, ambiance, service, status, etc.

 Healthcare: streamlining operations and optimizing patient experience

 Others industries that rely heavily on process design include: banking, airlines, hotels, etc.

 Who Invented Incandescent light bulb?  What was the most common source of lighting

before electric lights?

Who Invented Incandescent Light?

 Edison was not the first man to create incandescent light.

 The English scientist Humphrey Davy built a powerful electric lamp in the early 1800s.

 The Englishman Joseph Swan received a patent on a bulb in 1878 that Edison studied while building his own.

 What are the reasons for adoption of Edison’s electric lighting?

Innovations Meet Institutions

 It is not a simple story of one innovation’s technical and economic superiority over an incumbent rival.

 The evidence suggests that for its initial success (adoption), Edison’s system of electric lighting depended on the concrete details of its design to invoke public’s familiarity with existing gas and water utilities (existing institutions).

 Edison’s design, which exploited past understanding but also preserved the flexibility to evolve and build new institutions

Compatibility

 Compatibility is the degree to which an innovation is perceived to be consistent with the existing values, experience and needs of potential adopters.

 Two distinct aspects of compatibility: o existing skills and practices, o values and norms.

 Few innovations initially fit the user environment into which they are introduced. Significant misalignments between the innovation and the adopting organization will require changes in the innovation or organization, or, in the most successful cases of implementation, mutual adaptation of both.

How Great Designers Think

 Embracing failure

 Analogical insights

 Reframing problems

 Elegant simplicity

 Inside-out craftsmanship

 Never leave well enough alone

 Customer doesn’t know what’s right

 Zealous missionaries

~William Lidwell https://www.youtube.com/watch?v=rdH8Kuku9tA&t=3622s

Dyson vacuum

Watch the video below and analyze how design thinking is applied to their new product development:

James Dyson launches new Dyson vacuum with laser technology. – YouTube

 https://www.youtube.com/watch?v=fN7KJ46DHjU

Red Dot Product Design Award

Chair Nendo Oki Sato, Tokyo, Japan

Air Purifier Homwee Technology (Sichuan) Co., Ltd., Chengdu, China

Red Dot Product Design Award

Mountain Bike Canyon Bicycles GmbH, Germany

HP Officejet Printer Hewlett-Packard, Singapore