Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)

REDEFINING VALUE:
BRIDGING THE INNOVATION
CULTURE DIVIDE
Nathan Shedroﬀ
Chair, Design MBA Programs
California College of the Arts
nathan@nathan.com
@nathanshedroff
designmba.cca.edu 
@designmba

MAKE IT SO
Interaction Design Lessons from Science Fiction
by NATHAN SHEDROFF & CHRISTOPHER NOESSEL
foreword by Bruce Sterling
Many designers enjoy the interfaces seen in science fiction films
and television shows. Freed from the rigorous constraints of designing
for real users, sci-fi production designers develop blue-sky interfaces
that are inspiring, humorous, and even instructive. By carefully studying
these “outsider” user interfaces, designers can derive lessons that make
their real-world designs more cutting edge and successful.
“Designers who love science fiction will go bananas over Shedroff and Noessel’s delightful and
informative book on how interaction design in sci-fi movies informs interaction design in the real
world.... You will find it as useful as any design textbook, but a whole lot more fun.”
ALAN COOPER
“Father of Visual Basic” and author of The Inmates Are Running the Asylum
“Part futurist treatise, part design manual, and part cultural analysis, Make It So is a fascinating
investigation of an often-overlooked topic: how sci-fi influences the development of tomorrow’s
machine interfaces.”
ANNALEE NEWITZ
Editor, io9 blog
“Shedroff and Noessel have created one of the most thorough and insightful studies ever made
of this domain.”
MARK COLERAN
Visual designer of interfaces for movies (credits include The Bourne Identity, The Island, and Lara Croft: Tomb Raider)
“Every geek’s wet dream: a science fiction and interface design book rolled into one.”
MARIA GIUDICE
CEO and Founder, Hot Studio
www.rosenfeldmedia.com
MORE ON MAKE IT SO
www.rosenfeldmedia.com/books/science-fiction-interface/
MAKEITSObyNATHANSHEDROFF&CHRISTOPHERNOESSEL
Experience Design 1.1
a manifesto for the design of experiences
by Nathan Shedroff
product taxonomies 16
user behavior 116
100 years 22
information 42
takeaways 28
data 36
knowledge 48
subjectivity 78
consistency 96
navigation 84
Design Strategy in Action
Edited by Nathan Shedroff
A publication from the MBA in Design Strategy program
2011
product taxonomies 16
user behavior 116
experiences 4
experience taxonomies 10
100 years 22
wisdom 54
information 42
takeaways 28
data 36
knowledge 48
subjectivity 78
consistency 96
navigation 84
2008 Edition
Dictionary of
Sustainable Management

MBA IN DESIGN STRATEGY
MBA IN STRATEGIC FORESIGHT
MBA IN CIVIC INNOVATION

BUSINESS
(DESIGN, ARCH, ENG…)

“BEAN COUNTERS”
“CREATIVES”

MINIMAL VIABLE PRODUCT
EXPERIENCE PROTOTYPE

functional
CLV = GC • - M •∑
i = 0
n
(1 + d)i
ri
∑
i = 1
n
GC = gross contribution per customer
M = (relevant) retention costs per customer per year
n = horizon (in years)
r = yearly retention rate
d = yearly discount rate.
(1 + d)i - 0.5
r i - 1
(Lifetime Customer Value)

functional
{ (V/S)b - (V/S)g}* Sales
(Brand Value)
(V/S)b = Enterprise Value / Sales ratio of the firm with the benefit of the brand name 
(V/S)g = Enterprise Value / Sales ratio of the firm with the generic product
Let's use as an example branded cereals maker like Kellogg (K) against a generic provider like Ralcorp (RAH).
Value of Kellogg brand name = (1.78 - 1.32)(13846) = $6,369 Million 
Thus, (6369/24200) or 26% of the value of the company is derived from brand equity.

functional
financial
emotional
identity
meaningful

RELATIONSHIP
functional
financial
emotional
identity
meaningful

RELATIONSHIP
functional
financial
emotional
identity
meaningful
R
E
X
PEIEN
E
C
R
E
X
PEIEN
E
C

functional
financial
emotional
identity
meaningful
QUALITATIVE
QUANTITATIVE

functional
(Does this do what I need…?)

financial
(…at a price that’s worth it?)

emotional
(How does this make me feel?)

meaningful
(Does this ﬁt into my world?)

functional
financial
emotional
identity
meaningful
Instagram$1.1

functional
financial
emotional
identity
meaningful
Instagram$1.1
$86M

functional
financial
emotional
identity
meaningful
Instagram$1.1
$1.01
$86M

functional
financial
emotional
identity
meaningful
Instagram$1.1
$1.01
$86M Quantitative
Qualitative

functional
financial
emotional
identity
meaningful
Instagram$1.1
$1.01
$86M Quantitative
Qualitative
(Premium)

“GOOD WILL”
“BOOK VALUE”

GROWTH IS EVERYTHING
FREE MARKETS ARE EFFICIENT
MARKETS OPTIMIZE EVERYTHING
“THE BUSINESS OF BUSINESS IS BUSINESS”
“CORPORATIONS ARE PEOPLE MY FRIEND”
THE FOUNDING FATHERS (USA) WERE PRO-BUSINESS
THE GPD MEASURES PROGRESS

RICH PEOPLE CREATE JOBS

THE NUMBERS TELL THE STORY

MARKETING & SALES ARE SIMILAR

BUSINESSES ARE MORE EFFICIENT THAN GOVERNMENTS
FOCUS ON MINIMAL VIABLE PRODUCT

COOPERATION IS FOR WUSSES

MYTHS OF BUSINESS

THE WORK SPEAKS FOR ITSELF
DESIGN IS FOCUSED ON CUSTOMERS
DESIGNERS CREATE CULTURE
BUSINESSPEOPLE ONLY CARE ABOUT THE NUMBERS
NUMBERS DON’T TELL THE STORY
YOU CAN PROTECT AN IDEA
DESIGNERS CREATE AND CONTROL THE EXPERIENCE
IT’S GOTTA LOOK NICE
THE BEST SOLUTION ALWAYS WINS
MYTHS OF DESIGN

Lessons from The Catalyst:
The Behaviors That Foster Innovation 
Within Orgs Are Often Fireable 
Oﬀenses:
• Hiding budget
• Working on projects after they’re  
cancelled
• Going “out of bounds” for mentors,  
partners, and conspirators
• Reframing the original opportunity

Product
Development
Board
CEO
Dir. LegalDir. HRDir. Finance
Dir.
Operations
Dir.
Marketing
Dir. StrategyDir. IT
ContractsManufact.
Purchasing
Distribution
Warehouse
Quality
Control
Acc.
Payables
Acc.
Receivables
Recruiting
Training
Health &
Safety
Network
Admin.
Training
Support
Community
Relations
Research &
Development
Strategic
Partnerships
Customer
Insight
Marketing
Commun,
Advertising
Customer
Support
Compliance
Business
Development
Market
Research
PR
Social Media
Brand
Strategy
Customers

Dir.
Operations
Product
Development
Board
CEO
Dir.
Marketing
ContractsManufact.
Purchasing
Distribution
Warehouse
Quality
Control
Acc.
Payables
Acc.
Receivables
Recruiting
Training
Health &
Safety
Network
Admin.
Training
Support
Community
Relations
Research &
Development
Strategic
Partnerships
Customer
Insight
Marketing
Commun,
Advertising
Customer
Support
Compliance
Business
Development
Market
Research
PR
Social Media
Brand
Strategy
Customers

Marketing
Commun,
Advertising
Business
Development
PR
Product
Development
Board
CEO
Dir.
Operations
Dir.
Marketing
ContractsManufact.
Purchasing
Distribution
Warehouse
Quality
Control
Acc.
Payables
Acc.
Receivables
Recruiting
Training
Health &
Safety
Network
Admin.
Training
Support
Community
Relations
Research &
Development
Strategic
Partnerships
Customer
Insight
Customer
Support
Compliance
Market
Research
Social Media
Brand
Strategy
Customers

Marketing
Commun,
Advertising
Business
Development
PR
Product
Development
Board
CEO
Dir.
Operations
Dir.
Marketing
ContractsManufact.
Purchasing
Distribution
Warehouse
Quality
Control
Acc.
Payables
Acc.
Receivables
Recruiting
Training
Health &
Safety
Network
Admin.
Training
Support
Community
Relations
Research &
Development
Strategic
Partnerships
Customer
Insight
Customer
Support
Compliance
Market
Research
Social Media
Brand
Strategy
Customers
Shareholders Stakeholders

INNOVATION CULTURES:
39% Dynamic Innovators
26% Creative Innovators
18% Structured Innovators
10% Ad Hoc Innovators
8% Innovation Outsourcers
8%
10%
18%
26%
39%
Research: Cheskin (2008)

39% Dynamic Innovators
(innovation is lead by executives and cross-functional
teams, strategic innovators, integrating innovation right
into their corporate strategy) ex: GAP, Pepsi
• Strategic Thinking Guides Overall Process
• Led by Senior Management with Cross-Functional  
Teams
• Cross-Functional Collaboration Critical
• Creative Environment Important
• Innovation is not Dependent on a “Big Idea”
• Risk-Taking is Accepted

26% Creative Innovators
(more spontaneous and build innovation around inspiration
and instinct derived from one or a few “geniuses,” intuitively
aware of trends and customers’ cultures, act quickly,
decisively, and creatively) ex: Apple, numerous start-ups
• “Big Ideas” Inspire Most Innovation Initiatives
• Led by Senior Management
• Exertion is Often Ad-Hoc and Doesn’t Follow a Set Process
• Creativity and Curiosity are more Important Than Analytics
• Risk-Taking is Encouraged
• Design is recognized and respected as a partner

18% Structured Innovators
(meticulous processes in the hands of middle managers,
Research & Development, Information Technology, or
Product Development groups) ex: Nestlé, Kraft, Boeing
• Innovation is the Outcome of a Formal Process
• Leadership by Middle Management, R&D, and  
Technology Departments
• Cross-Functional Collaboration is Not Emphasized
• Analytic Evaluations are Usually More Important Than  
Creativity
• Most Innovations Are Iterative and Risk is Minimized

10% Ad-Hoc Innovators
(occasionally, and haphazardly create breakthroughs, no 
set process and often don’t know how they did it and can’t
replicate it, don’t always understand why an offering is
successful (or not). ex: Healthcare providers, utilities,
retailers, most auto companies
• Innovation Approached in Isolation (internally and externally)
• Leadership by Middle Management, R&D, and  
Technology Departments
• Cross-Functional Collaboration is Non-Existent
• Qualitative Metrics Only
• Risk AdverseResearch: Cheskin (2008)

8% Innovation Outsourcers
(just can’t innovate inside the company, culture doesn’t trust or
value innovation processes, regularly hire or acquire innovation
expertise or solutions from the outside, concentrate mostly on
sales, promotion, and brand strategies) ex: many fashion
houses, older technology ﬁrms, or pure marketers, most
ﬁnancial services
• Risk adverse
• Quantitatively managed and focused (only)
• No real support for innovation across all divisions
• Innovators often leave for other opportunities

IT’S MORE IMPORTANT FOR AN
ORGANIZATION TO KNOW ITSELF
THAN TO BE ANY SPECIFIC TYPE

ORGANIZATIONS, DEPARTMENTS,
TEAMS, & INDIVIDUALS ALL HAVE
DIFFERENT CULTURES

Leadership
• Support design from the top
• Communicate vision and values  
internally (all parts of the org)
• Support qualitative metrics for  
success (not only quantitative)
• Ensure all aspects of the org  
understand who is expected to 
innovate and the rewards
• Don’t make design decisions
but ensure they’re being made
• Temper legal advice

Marketing
New approaches that support
Innovative Opportunities:
• Qualitative Marketing Insight 
(not merely Quantitative Research)
•“Design Research” Techniques
• Customer Insight Before  
Technological Development 
(Augmenting “Agile” Development)
• Separating Marketing from Sales

Operations
• Invest time and budget  
toward design efforts
• Support design efforts 
in other org divisions
• Regular dialog throughout  
divisions

R&D
• Build and maintain a culture 
that attracts and enables 
integrative and divergent 
thinkers
• Provide “cover” for development
• Work with Marketing, Customer  
Support, and Customers directly
• Prototype and deploy!

Technology
• Abandon “command and
control” for a service mentality:
Explore and deploy in the
service of departmental and
customer needs (not merely
the needs of the IT dept.)
• Consider the experience!

Finance
• Explore new business models
• Explore new funding models
• Abandon “command and 
control” for a service mentality

HR
• Understand and Develop  
appropriate hiring procedures
• Develop and deploy new  
review and reward structures
• Source creatively and  
dynamically
• Work closely with design leads
• Abandon process when  
necessary

Design
• Understand business process, 
issues, and terminology
• Develop new ways of communicating  
customer experience to non-designer 
peers
• Respect the need (and time) for 
quantitative metrics and decisions
• Work closely with non-designers
• Focus on Total Value!

adopt a new
practice
CARE DRIVES CONVERSATIONS WHICH CREATE COMMITMENTS
WHICH ENABLE ACTIONS WHICH DRIVES RESULTS
The root cause of all outcomes
(positive and neagtive), are the
conversations we (effectively or not)
have or don’t have.
YOU CAN
ONLY
INNOVATE
FOR THAT
WHICH YOU
• passion and ownership
• lack of commitment
• compliance & obligation
If you don’t change actions, you
can’t change results.

Business Model Generation, Alexander Osterwalder
businessmodelgeneration.com
}44
The Business Model Canvas
Cost
Structure
Key
Partners
Key
Resources
Channels
Key
Activities
Value
Proposition
Customer
Relationships
Customer
Segments
Revenue
Streams

PC Customer Experience Waveline
©2014 TechCo. CORPORATION
USEEXPLORATION SETUPPURCHASE
Experiences + Touchpoints
INTENSITY
T I M E
Ideal Customer
Experience
The customer is looking for a trusted agent
to them through the purchase process.
TechCo. can work with channel partners to
educated sales staff and deliver consistent
collateral and information at the point of
sale so there is truth for the customer.
The customer has difficulties
navigating complex user inter-
face. OEM information embed-
ded on the computer often
looks like marketing materials.
TechCo. can help simplify.
Answer the questions directly
around TechCo. supported
and promoted software. Work
closely with the OEMs to take
ownership of the customers
experience at this stage.
The customer has difficulties navigating
complex user interface. OEM informa-
tion embedded on the computer often
Tec
the
sup
Wo
ow
at t
The customer is looking for an
unbiased opinion about where to
turn to find information. TechCo.
has
an opportunity to provide
recommendations and resources
that might be valuable.
The customer is looking for an
unbiased opinion about where to
turn to find information. TechCo.
has
an opportunity to provide
recommendations and resources
that might be valuable.
1
1
2 3
4
5
6
2 3 4 5 6
Opportunities
WiDi once set up allows
users to access content
on their computer such as
downloaded movies and
music. It creates a mirror
display on your HDTV
Ads gets customers
excited and peak
awareness about new
computers and features
Windows 8 OS creates
curiousity and customers
are interested in explor-
ing the new technology
and how it works with
new form factor
In Store exploration is
used prior to purchase
so customers can get a
good look and feel for
potential options
Sales associate often
give our conflicint
information especially
when it comes to WiDi
Friends & Family are
valued as they provide
only opportunity to see,
touch, and use a variety
of computers before
purchase.
Program install: Chrome,
Adobe Reader, Lorem
ipsum dolor sit amet,
consectetur adipiscing
elit. Sed ullamcorper, elit
vitae.
WiDi is difficult to
find out about, unless
a friend has it or you
come across it on a
blog, chances are you
won’t find out much
about it
Google is used to find specific
technical information that is not
listed on the product display
cards, like info on graphics
cards, RPM on hard drives, etc.
Upgrade from Win8 to
Win 8.1 During the install
process the drives from
were not updated, this
caused problems with
finding WiDi
1 Segment A
WiDi is highly preferred
because of ability to do
specific searches and
serve up applicable, con-
textual information.
Windows 8 two modes
Lorem ipsum dolor sit
amet, consectetur adipi-
scing elit. Sed ullamcor-
per, elit vitae eleifend
euismod
Internet program install:
Chrome, Adobe Reader,
per, elit vitae.
OEM manual is
referenced to find
the “don’t do’s”
A non-functioning or
outdated computer
prompt users to set out
on the discovery process
2 Segment B
Google search Lorem
vitae eleifend euismod
3 Segment C
Family
ipsum d
consect
elit. Sed
vitae el
of computers before
purchase.
OEM websites come with
mixed reviews, some see
them as marketing while
other like to see options
vs. pricing tools
Product display card
were inconsistent in the
depth of information
between different
computers, for others it
was a good guide
Windows 8 Setup Wizard
euismod
Windows 8 two modes
euismod
Google allows
customers to
directly search and
find the answers
they need, it
matches their
thinking style
Sales Associates often provide
misleading, conflicting, or
down-right untrue information
(with WiDi, for example). When
knowledgeable and articulate,
though, a sales associate can
persuade someone to make a
purchase and instill excitement.
Wayfinding Signage is
often unclear and pro-
vides little in the way of
helping customers make
selections or navigate the
space more effectively
Google is a common starting
spot that helps customers
gain an overview of the
options avaliable and
start navigating the
complex ecosystem
of the PC Retail visit before purchase
test the look and feel of the
products, talk to associates
about what is new, and
check out the selection
Google is accessed
multiple times to
continually refine
the search in finding
the right match
Forums/Reviews are a
resource that help provide
contextually relevant
information and carry a
perception of being
unbiased as compared to
the manufacturer for
others it is a necessary evil
OEM Packaging can
set expectation about
the process or the
experience the cus-
tomer is about start
Computer customers
are looking for light,
sleek, attractive form
factor computers. The
look and feel can make
or break deals
Computer customers are
looking for light, sleek,
attractive form factor
computers. The look and
feel can make or brake
deals
Quick Start Guide is
sometime used by the
customer as a resource
to make sure the proper
sets are being followed
to get computer set up. It
is going through the
steps properly to get
OEM SiteOEM Site
Google
Search
Google
Search
Google
Search
Google
Search
Sales associateSales associate
Friends &
Family
Friends &
Family
Friends &
Family
Friends &
Family
Wonder
Truth
Beauty
Frustration Shock
Anxiety
&
Fear
Frustration
Meandering
Excitem
ent
Validation
Trust
Excitem
ent
Discovery
Freedom & Oneness Comfort
Computer crashing #5
WiDi confusion #3
Key touchpoints #4
Video #1
#2 Calling store to get
information about WiDi
#6 Excitement about
new computer
Video Jim
@ 58 minutes
Video Jim @ 58 minutes
setting up #7
Dragon setup #13
WiDi works #16
Internet Explorer - can’t
delete #12

ne
CONFIDENTIAL - INTERNAL USE ONLY
USESETUPPURCHASE
This Waveline provides Te
ences felt by customers ov
sion of a customer’s comp
points along the journey.
phases of the journey. Wh
this map provides us wit
customer’s learn and inter
HOW TO READ THIS M
LEGEND
Ideal Customer
Experience
The customer is looking for a trusted agent
to them through the purchase process.
TechCo. can work with channel partners to
educated sales staff and deliver consistent
collateral and information at the point of
sale so there is truth for the customer.
The customer has difficulties
navigating complex user inter-
face. OEM information embed-
ded on the computer often
TechCo. can help simplify.
Answer the questions directly
around TechCo. supported
and promoted software. Work
closely with the OEMs to take
ownership of the customers
experience at this stage.
The customer has difficulties navigating
complex user interface. OEM informa-
tion embedded on the computer often
TechCo. can help simplify and answer
the questions directly around TechCo.
supported and promoted software.
Work closely with the OEMs to take
ownership of the customers experience
at this stage
TechCo. can help simplify and answer
the questions directly around TechCo.
supported and promoted software.
Work closely with the OEMs to take
ownership of the customers experience
at this stage
mer is looking for an
opinion about where to
d information. TechCo.
unity to provide
dations and resources
be valuable.
3
4
5
6
7
8
3 4 5 6 7 8
WiDi once set up allows
users to access content
on their computer such as
downloaded movies and
music. It creates a mirror
display on your HDTV
of computers before
purchase.
Program install: Chrome,
Adobe Reader, Lorem
vitae.
WiDi trying to find WiDi
and set it up is extremely
difficult for users
Google is used to find specific
technical information that is not
listed on the product display
cards, like info on graphics
cards, RPM on hard drives, etc.
Upgrade from Win8 to
Win 8.1 During the install
process the drives from
were not updated, this
caused problems with
finding WiDi
Windows 8 two modes is
highly preferred because
of ability to do specific
searches and serve up
applicable, contextual
information.
1 Segment A
WiDi is highly preferred
because of ability to do
specific searches and
serve up applicable, con-
textual information.
Windows 8 two modes
euismod
per, elit vitae.
OEM manual is
referenced to find
the “don’t do’s”
2 Segment B
per, elit vitae.
Forum Tips and Ticks
Family & Friends Lorem
vitae eleifend euismod
3 Segment C
Opportunities
of computers before
purchase.
Product display card
were inconsistent in the
depth of information
between different
computers, for others it
was a good guide
Windows 8 Setup Wizard
euismod
Windows 8 two modes
euismod
Google allows
customers to
directly search and
find the answers
they need, it
matches their
thinking style
YouTube provides customers
with a visual walk through of
how to accomplish basic to
complex task without
contacting the OEM
Sales Associates often provide
misleading, conflicting, or
down-right untrue information
(with WiDi, for example). When
knowledgeable and articulate,
though, a sales associate can
persuade someone to make a
purchase and instill excitement.
Wayfinding Signage is
often unclear and pro-
vides little in the way of
helping customers make
selections or navigate the
space more effectively
ssed
to
ine
inding
h
Forums/Reviews are a
resource that help provide
contextually relevant
information and carry a
perception of being
unbiased as compared to
the manufacturer for
others it is a necessary evil
OEM Packaging can
set expectation about
the process or the
experience the cus-
tomer is about start
Computer customers
are looking for light,
sleek, attractive form
factor computers. The
look and feel can make
or break deals
Computer customers are
looking for light, sleek,
attractive form factor
computers. The look and
feel can make or brake
deals
Google
Search
Google
Search
rt Guide is
used by the
as a resource
ure the proper
eing followed
mputer set up. It
rough the
perly to get
Sales associateSales associate
Friends &
Family
Friends &
Family
Friends &
Family
Friends &
Family
Brick and MortarBrick and Mortar
Truth
Beauty
Freedom
Anxiety
&
Fear
Frustration
Meandering
Boredom
Trust
Excitem
ent
Discovery
Freedom & Oneness Comfort
Key touchpoints #4
TechCo. WiDi details
#10
#2 Calling store to get
information about WiDi
#6 Excitement about
new computer
Video Jim
@ 58 minutes
Video Jim @ 58 minutes
setting up #7
Win8 two modes #9 Learning styles #14
Dragon setup #13
Spoiled by Apple TV #11
WiDi works #16
Internet Explorer - can’t
delete #12

Stage 0:
Unsustainable
“Business as Usual”
Stage 1:
Exploration
Stage 2:
Experimentation
Stage 3:
Leadership
Stage 4:
Restoration
High degree of organizational alignment
Stakeholders & CommunitiesGovernance and Management
Operations and Facilities
Design and Process Innovation
Human Resources and Corporate Culture
Marketing and Communications
Partnerships and Stakeholder Engagement

Strategic Focus
Corporate
Meaning Priorities
Team & Partner
Meaning
Priorities
Customer
Meaning
Priorities
Competitors’ Meaning
Priorities
MEANING STRATEGY

DESIGN THINKING
DESIGN RESEARCH
“NEW BUSINESS”
NEW LEADERSHIP
SYSTEMS THINKING
SUSTAINABILITY

Nathan Shedroﬀ
Chair, Design MBA Programs
nathan@nathan.com
@nathanshedroff
designmba.cca.edu 
@designmba
THANK YOU

Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)

Similar to Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015) (20)

More from Rosenfeld Media

More from Rosenfeld Media (20)

Recently uploaded

Recently uploaded (20)

Redefining Value: Bridging the Innovation Culture Divide (Nathan Shedroff at Enterprise UX 2015)