Design Thinking and Critical Thinking for Innovation in a Disruptive World

Design Thinking
Critical Thinking &
Innovation Design
deepu@fayausa.com
@deepusnath

Movie : Passengers (2016)
deepu@fayausa.com @deepusnath

Movie : Ex Machina(2014)

Movie :Transcendence (2014)

Are they still just fiction?

Nadine - Human Like Robot
IBM Watson
Nadia Chat Bot Neural Lace
3 D Printed Heart DaVinci Surgical System

HOW DOES IT DISRUPT
DIGITIZE DEMATERIALIZE DEMONETIZE DEMOCRATIZE

DIGITIZE
Information Enabled

DEMATERIALIZE
Physical products disappear and consolidate

DEMONETIZE
The cost of products and services decrease significantly

DEMOCRATIZE
Available and affordable to everyone

What is next for YOU?

Gartner’s Top Ten Strategic Technology Trend Predictions

Convergence of Biological, Physical & Digital World
Whether we like it or not,
Whether we want it or not,
Technologies will make these this happen and
You and me have to use it and
finally we love using it
as we use the smartphone.
That will become part of you

DISRUPTIVE STRESS VS DISRUPTIVE OPPORTUNITY

HOW TO SURVIVE
THE WAVES OF CHANGE

ADAPT TO THE CHANGE

“survival of the fittest”
The fittest is the one who is aware and agile in the face of change.
‘Relevance’ is a moving target’
the challenges put forward by technology disruption cannot be tackled by mere syllabus
updation in the academia.
ere is no way around change; the only way is through

WHY CRITICAL THINKING IS IMPORTANT TODAY?

• Pinpoint the issue
• Collect information
• Examine and scrutinise
• Decide what's relevant
• Self-evaluate
• Draw conclusions
• Explain your conclusions
How to Improve Your Critical Thinking
Skills

Do you think education system is
broken?

BREAK YOUR
ECHO CHAMBERS

Facilitate Community of Practice

OVERCOME THE FEAR OF FAILURE
If you fail, just identify the reason and fix it on your next or pivot based on the revised need.
Have Internal locus of control

BE READY TO
UNLEARN & RELEARN

MAKE YOUR BASEMENT STRONG

Design thinking is a process
for solving problems by
prioritising the consumer's
needs above all else.
It relies on observing, with
empathy, how people interact
with their environments, and
employs an iterative, hands-on
approach to creating innovative

How to categorize innovation
Innovation can be either a new product, service or business model that uses completely new or existing technology in a new or
existing market. Most innovations belong to several categories and the categories also overlap.
Thus, the point of categorization is just to provide you with different ways to look at, and approach, innovation.
Technology Market
Business Model
Product or Service
Innovation can use either
existing or completely new
technology.
Although innovations are
often categorized based on
technology newness, it doesn’t
necessarily have to involve any
technology at all.
In addition to technology,
innovation can be categorized
based on the market it targets and
the impact it has on it.
Innovation can either
sustain the position in an existing
market, disrupt an existing market,
or create a completely new
market.
Another way to approach
innovation is look at the business
model it uses.
Innovation can either use a
new business model or an
existing business model in a new
market.
Probably the most
straightforward way to categorize
innovation is to use
product/service classification.
The main difference
between product and service
innovations is that products are
tangible, whereas services aren’t.

Innovation Matrix
The Innovation Matrix can be used to categorize
innovation based on two dimensions – the impact it
has on the market, and the technology it uses.
These 4 types of innovations are commonly used,
and in the first section of this guide, we’ll help you
understand the characteristics and differences
between each one.
We’ve also included some examples of different
types of innovations to give you a concrete idea of
how each of them can work in practice.
Incremental
Disruptive
Gradual, continuous
improvements on existing
products and services.
Technology or new business
model that disrupts the existing
market
IMPACT
ON
THE
MARKET
TECHNOLOGY NEWNESS
LOW HIGH
Sustaining
A significant improvement on
a product that aims to sustain
the position in an existing
market.
Radical
Technological breakthrough
that transforms industries,
often creates a new market.

Incremental Innovation
Most innovations are incremental, gradual and continuous improvements in the existing concepts, products or services in the
existing market.
Incremental innovations are slightly better than the previous version of the product or service and has only slight variations on
an existing product formulation or service delivery method.
Products can be made smaller, bigger, easier to use or more attractive without changing the core functionality of it whereas
services can be made more convenient, fast, and efficient for the user, for example.
Incremental innovation can attract higher paying customers because it fulfils
the customer needs identified from their behavior or feedback.
Characteristics:
• Does not create new markets but
happens in the existing one
• Often doesn’t leverage radically new
technology
• Low uncertainty
• Low impact on the market, however, can
have a significant impact on the
business (If your recurring expenses are
$1 billion and you can reduce expenses
by 1%, you’ll save $1 million. Making
$1m profit can take years and often
requires large investments)
TV today is a result of continuous incremental improvement.

Sustaining Innovation
Sustaining innovation is similar to incremental innovation in a sense that the product is made slightly better with every iteration,
reducing defects. The new improved version of the product can be more expensive and have higher margins than the previous
one if it targets more demanding, high-end customers with better performance than what was previously available.
However, it might as well be cheaper if it leads to higher volumes and thus higher absolute profits.
iPhone 11 Pro Max
1st Generation iPhone
Once disruptive but currently fully sustaining and
profitable innovation is iPhone, where the recent
versions of the phone appeal to the same customer
segments and do not create new value networks.
New models of the phone sustain the existing
business model in the premium segment of the
market to meet the needs of a more demanding
customers who are willing to pay more for a newer,
slightly better version of the phone.
Characteristics:
• Higher profits > focus on profitable segments
• Sustains or improves the position in an existing market
• Improves and grows existing value networks
• Changes are more incremental in nature
• At risk of being disrupted

0.
2.5
5.
7.5
10.
2002 2004 2006 2008 2010 2012 2014 2016
Blockbuster revenue Netflix revenue
Netflix vs. Blockbuster
Netflix is a classic example of a disruptive innovation that uses new technology and a new business model in
an existing market, eventually disrupting Blockbuster.
Billion $
2007: Netflix
launches
streaming
BANKRUP
T
$8 BILLION
2004: Blockbuster
launches online on-
demand, drops late
fees
2007: Blockbuster
launches Total Access
DVD-by-mail

Every industry is affected.
Mobility
Energy
Financial
services
Manufacturing
Professional
services
Technology
Travel
Retail
Media
Logistics
Real estate
Health care
Consumer
goods
Telecom
No one knows when the change is going to happen exactly. Here’s our best guess:

Examples of product innovation
A product innovation can be a completely new product that has never been seen before, an improved version of an existing product,
or a new feature to an existing product.
COMPLETELY NEW IMPROVED VERSION NEW FEATURE
Dynamic LED turning indicators
Wireless earpods
Fidget spinner

Service innovation –
Uber is an example of a service company that has created further growth outside its core business.
With UberEATS, it has used its strengths and unique capabilities to enter into adjacent markets – restaurant delivery and grocery
home delivery businesses.
The fact that they’re already in peoples’ phones and that they’re already organizing transportation has helped them to extend their
line of offerings and provide their customers with new value.
Uber’s unique capabilities enable rapid market entry:
Brand recognition
Uber’s strong and globally recognized
brand has enabled them to enter adjacent
markets fast.
Technology infrastructure
Uber has built a multi-sided technology
platform that can be used to exchange value
with customers, organizations and other
entities in adjacent markets.
Network of couriers
Uber has one of the widest drivers’
networks (around 3 million drivers) across the
globe that they can use to deliver adjacent
services..

Process innovation
Process innovation generally refers to the implementation of a new or significantly improved production or delivery
method.
Robotic process automation (RPA), for example, is the use of software with artificial intelligence (AI) and machine learning
capabilities can be used to handle high-volume, repeatable tasks that previously required humans to perform.
PRODUCTION
PROCESS
INPUTS
• Labor
• Technology
• Machinery
• Materials
• Changes in culture and
structures
OUTPUTS
Reduced:
• Wastage
• Processing time
• Production costs
Improved:
• Quality
• Process efficiency
• Productivity
• Customer & employee
satisfaction

Technological innovation
Technology as a source of innovation can be identified as a critical success factor for increased market competitiveness.
Technological innovation involves new or improved technology, such as new type of machinery or alteration of some form of
technology into a product, processes or service delivery methods.
Technological innovations can be incremental, disruptive, radical or sustaining.
INCREMENTAL DISRUPTIVE RADICAL SUSTAINING
iPhone
11
1st generation
iPhone
Each new car model is just
an improved version of the previous
one. Serves the needs of a typical
customer in the existing market.
Initially disrupted the existing
market with its advanced
technology, impressive user
experience and capability for new
use cases.
Currently making gradual
improvements to the products to
sustain its position in the market.
However, camera technology
consists of several technology
innovations.
Provides radical technology
solutions that are transforming the
automobile industry.
Network of self-
driving cars

Business model innovation
Business model innovation is a fundamental change in how a company delivers value to its customers or captures it from
the market. In practice, it often happens through the development of new pricing mechanisms, revenue streams or distribution
channels but isn’t limited to them.
Signs that indicate that your business is at risk of being disrupted:
• Saturated market
• Outdated technology
• Undesirable changes in industry conditions
• Unwillingness or inability to keep up with global trends
• Low customer satisfaction
Purchasing music, for example, has transformed twice in the past couple of decades. iTunes is an interesting example
of disaggregation business model – a strategy that breaks down or separates something into constituent parts or elements. Before
iTunes started to sell single tracks, you either had to buy the entire album to hear your favorite song or sit by the radio at the right time
to be able to record it.
Later, Spotify took the digital music business to a completely different direction with its freemium streaming model by cutting out the
middleman and dealing with customers directly online to which Apple now has had to respond with its own Apple Music service.
vs.

Marketing innovation
An innovation is typically considered to be a marketing innovation if it brings significant changes to the “traditional”
marketing mix (4Ps: Price, Product, Promotion and Place) of the industry in question.
For an innovation to be successful, people need to be able to find it and then benefit from it. The main purpose of a marketing
innovation is to create entirely new markets or increase market share in existing ones.
The ability to connect with your customers is key and there is always room to improve relationships and customer engagement.
Because of the constantly evolving technology and customer preferences, new marketing innovations are needed to promote
both new and existing products and services. Coming up with innovative marketing practices enables you to enhance those
customer relationships in ways they might not even expect.
L’Oréal cosmetics company has developed its Makeup Genius App to reach a
wider customer group and to elevate their engagement with the brand. Using
such innovative technologies in their marketing also has the added benefit of
allowing them to enhance the online shopping experience by using data to
suggest products that match the personal preferences of the customer.
Although technology plays an important role in future marketing innovations, it
doesn’t necessarily always have to leverage new technology.
L’Oréal – technology at the core of marketing innovation

Architectural innovation
Architectural innovation is described as the reconfiguration of existing
product technologies and was introduced by Rebecca Henderson and Kim
Clark in 1990.
The main point in architectural innovation is that while the core components
of the product remain the same, the relationship between these components
changes. This type of innovation entails the overall design, system or the
way components interact.
A classic example of architectural innovation is Sony Walkman. All the main
components already existed but were before just used in other products.

Modular innovation
Modular innovation (or component innovation), is the exact
opposite of architectural innovation.
In modular innovations, one or more components of a product
is changed while the overall design stays the same.
An example of a modular innovation is a clockwork radio that is
powered by an internal generator and provides electricity for long
periods of time.
It uses the architecture of an established radio but has a different
impact because it can be used in areas with power shortages.

Social innovation
Social innovations are new practices or technological inventions that aim to meet social needs in a better way than existing
solutions. These types of innovative solutions can be provided or funded either by public or commercial entities.
Although it isn’t always the case, the result of innovation should be improvement.
From the society’s perspective, some examples of the fundamental outcomes of social innovations are:
• Economic growth
• Increased well-being
• Increased communication
• Educational accessibility
• Environmental sustainability
Emerging social issues require new innovative solutions
Sustainability and environmental issues, such as climate change, are challenges that require a lot of work and innovative
solutions now and in the future.
Often, politics or other methods aren’t enough to make a change – at least not quick enough. Policy changes take time to take
effect, which is why the long-term survival of our society and nature depends on new, responsible innovative technologies.
Thus, new greener technology solutions, such as eco vehicles and clean water solutions will definitely offer many advantages
for the future.

Source: ARK Investment Management LLC, 2018; Helpman, E. (2010). General Purpose Technologies and Economic Growth. Cambridge, MA: MIT Press; Brynjolfsson, E., & McAfee, A. (2018). The second machine
age: Work, progress, and prosperity in a time of brilliant technologies. Vancouver, B.C.: Langara College; Kurzweil, R. (2016). The singularity is near: When humans transcend biology. London: Duckworth.
Although radical innovations are rare, there have been more and more of them in the recent past.
Now, there’s a new, even bigger wave of radical innovations ahead:
The Future of Innovation

Incremental Disruptive Sustaining Radical Product Service
Product
Service
Process
Technological
Business model
Marketing
Architectural
Social

Irrespective of your background,
as long as you learn and build right skills..
Todays world will accept you,
and there is always a pathway you will excel

𝝁Learn
WILL HELP YOU TO CONNECT TO YOUR
AFFINITY SPACE

Young Innovator
Program
WILL PREPARE YOU TO
RIDE THESE WAVES OF CHANGE

Design Thinking and Critical Thinking for Innovation in a Disruptive World

Design Thinking and Critical Thinking for Innovation in a Disruptive World

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