Design Thinking for Strategy (eBook)

Innovating Towards Competitive Advantage

Claude Diderich (Autor)

eBook Download: PDF

2019 | 1st ed. 2020
XII, 219 Seiten
Springer International Publishing (Verlag)
978-3-030-25875-7 (ISBN)

Infos

The business environment is changing more rapidly than ever before, and new business ideas are emerging. This book discusses applying insights from design thinking to craft novel strategies that satisfy customer needs, make use of the available capabilities, integrate requirements for financial success and provide competitive advantage.

It guides readers through the jungle encountered when developing a strategy for sustained growth and profitability. It addresses strategy design in a holistic way by applying abductive reasoning, iteratively observing customers and focusing on empathy, as well as prototyping ideas and using customers to validate them.

Uniquely applying insights from design thinking to strategy, this book is a must-read for graduates, MBAs and executives interested in innovation and strategy, as well as corporate strategists, innovation managers, business analysts and consultants.

Dr. Claude Diderich is an innovation, strategy, and digital transformation consultant specialized in design thinking-based business model innovation at the consulting company innovate.d, which he founded in 2011. He has over 20 years of experience in strategy development and business model innovation, with special focus on design thinking. His expertise spans from creating innovative strategies, modernizing business models, launching new products, managing product portfolios, developing target operating models, as well as implementing novel technologies.  Claude has worked with diverse firms and advised them on improving their profitability through creativity and innovation in the digital age.

Claude holds a doctor ès sciences and a master in computer science engineering from the Swiss Federal Institute of Technology in Lausanne, a certificate of advanced studies in strategy from the University of St. Gallen, and a specialization certificate in design thinking and innovation from the Darden School of Business, University of Virginia. He is a member of the Strategic Management Society and a member of the editorial review board of the Journal of Business Models. Since 2015, he is a senior mentor to University of Virginia's Darden School of Business online design thinking program.

Inhalt

Preface 6
Contents 7
The Concepts and Theories Behind Innovative Strategy Design 13
1 Understanding the Need for a New Approach to Strategy Development 14
1.1 Understanding the Concept of Strategy 15
1.1.1 Traditional Definitions of Strategy 16
1.1.2 Strategy from a Designer’s Perspective 17
1.1.3 A Distinct Definition of Strategy 18
1.2 Traditional Strategy Development Processes 18
1.2.1 Prescriptive School 18
1.2.2 Descriptive School 19
1.3 Challenges Faced by Traditional Approaches to Strategy Design 20
1.4 Design Thinking as a Solution 21
1.4.1 Design Thinking Approach 22
1.4.2 Delivering Value to Customers 23
1.4.3 A Common Language 23
1.4.4 Integrating Stakeholders 24
1.4.5 A Three Layers Process 24
References 24
2 Recognizing Key Insights That Make Design Thinking Valuable to Strategy 26
2.1 The Value of Design Thinking 26
2.1.1 Customer-Centric Problem Solving 28
2.1.2 Iteratively Improving Through Prototyping and Validating 29
2.1.3 Validating Ideas with Stakeholders 30
2.1.4 Combining Analytical Thinking and Intuition 30
2.2 A Look at the History of Design Thinking 31
2.2.1 The 1970s 31
2.2.2 The 1980s 32
2.2.3 The 1990s 33
2.2.4 The New Millenial 33
2.3 Design Thinking for Strategy 36
References 38
3 Revisiting the Business Model Canvas as a Common Language 40
3.1 The Role of the Business Model in the Context of Strategy Design 41
3.2 The Lightweight Business Model 42
3.2.1 Rationale and Conceptual Details 43
3.2.1.1 Customers 44
3.2.1.2 Offerings 44
3.2.1.3 Capabilities 44
3.2.1.4 Financials 44
3.3 The Detailed Business Model 46
3.3.1 Rationale and Conceptual Details 48
3.3.1.1 Customers 48
3.3.1.2 Offerings 50
3.3.1.3 Capabilities 50
3.3.1.4 Financials 52
3.3.2 Relations Between Elements of the Detailed Business Model 53
References 55
A Structured Approach to Strategy Development 57
4 Gaining a Collective Understanding of the Strategy Development Challenge 58
4.1 Strategy Project Set-up 59
4.1.1 Identifying Key Stakeholders and Their Roles 59
4.1.1.1 Decision Takers 61
4.1.1.2 Strategy Designers 61
4.1.1.3 Experts or Interpreters 61
4.1.1.4 Process Supporters 62
4.1.2 Fostering an Innovation Culture 62
4.1.3 Budget and Timeline 63
4.1.4 Assessment of the Change Capacity of and Underlying Risks for the Firm 65
4.2 Target Industry 68
4.2.1 Incumbents 68
4.2.2 Mature Firms 69
4.3 Guiding Principles 70
References 71
5 A Novel Strategy Development Process Based on Design Thinking 72
5.1 Process Overview 73
5.2 The Foundation Layer 73
5.2.1 Strategy Brief 75
5.2.2 Understanding Today’s Environment 75
5.2.3 Identifying Industry Trends 76
5.2.4 Choosing the Firm’s Strategic Focus 77
5.3 The Business Model Layer 77
5.3.1 Observing 77
5.3.2 Learning 78
5.3.3 Designing 80
5.3.4 Validating 80
5.4 The Competition Layer 81
5.4.1 Understanding the Competitive Landscape 82
5.4.2 Communicating 83
References 84
Laying the Foundation for a Successful Strategy 85
6 Understanding the Industry Environment and Its Implications to Strategy 86
6.1 Current Environment Analysis 87
6.1.1 Customers and Their Jobs-to-Be-Done 87
6.1.2 Outsider Perspective on the Industry 90
6.1.3 The Firm and Its Capabilities 92
6.1.4 Environmental Constraints 94
6.1.4.1 Political 94
6.1.4.2 Economic 94
6.1.4.3 Societal 95
6.1.4.4 Technological 95
6.1.4.5 Legal 95
6.1.4.6 Ecological 96
6.2 Industry Tends 97
6.2.1 Customers 98
6.2.2 Industry Structure 98
6.2.3 Innovation and Technology 99
6.2.4 Externalities 99
References 99
7 Choosing a Tangible Strategic Focus Rather Than Building Upon an Abstract Vision 100
7.1 Deriving the Strategic Focus Using Design Thinking 101
7.2 Observing and Learning 103
7.3 Designing Possible Strategic Focus Prototypes 104
7.3.1 Identifying Possible Strategic Focuses 104
7.3.1.1 Customers 104
7.3.1.2 Offerings 105
7.3.1.3 Capabilities 105
7.3.1.4 Financials 106
7.3.2 Choosing How to Compete 106
7.3.3 Characteristics Supporting the Strategic Focus 107
7.4 Validating the Designed Strategic Focuses 110
7.4.1 Checking for Consistency 110
7.4.2 Formulating Strategy Hypothesis 110
7.4.3 Designing Strategy Experiments 112
7.5 Selecting the Target Strategic Focus 113
References 114
Iteratively Developing the Business Model Underlying the Strategy 115
8 Gaining Insights by Observing Target Customers in Their Natural Environment 116
8.1 Observing Objectives 116
8.1.1 Observing Mature Firms 117
8.1.2 Observing Start-up Firms 117
8.1.3 Observing Disruptors 118
8.2 Deriving Perspectives Based on the Strategic Focus 119
8.3 The Observing Process 120
8.4 Identifying Target Populations 120
8.4.1 Customers Strategic Focus-Based Target Populations 122
8.4.2 Offerings Strategic Focus-Based Target Populations 123
8.4.3 Capabilities Strategic Focus-Based Target Populations 123
8.4.4 Financials Strategic Focus-Based Target Populations 124
8.5 Passively Observing 124
8.5.1 Types of Observations 125
8.5.2 Passively Observing Process 126
8.5.3 Passive Observation Tools 127
8.6 Conducting Ethnographic Interviews 129
8.7 Running Focus Groups 131
8.8 Performing Secondary Research 132
8.9 Timeline and Required Skills 133
References 134
9 Understanding Target Populations and Their Jobs-to-Be-Done Through Learning 135
9.1 Learning Objectives 135
9.2 The Learning Process 136
9.3 Selecting a Framework 136
9.3.1 Understanding Customers 137
9.3.2 Identifying Capabilities and Resources 139
9.3.3 Comprehending Financials 140
9.4 Mapping and Clustering Insights to Gain Knowledge 141
9.5 Formulating and Validating Assumptions 145
9.6 Timeline and Required Skills 146
References 147
10 Shaping the Strategy by Designing Business Model Prototypes 148
10.1 Designing Objectives 149
10.2 The Designing Process 150
10.3 Documenting the Current Detailed Business Model 151
10.4 Generating Innovative Ideas 152
10.4.1 Selecting a Target Population 152
10.4.2 Ideation 153
10.4.3 Typical Examples of Ideas 154
10.4.3.1 Customers and Their Jobs-to-Be-Done 155
10.4.3.2 Products- and Services-Focused Ideation 156
10.4.3.3 Leveraging Capabilities 157
10.4.3.4 Ideation Around Financials 157
10.4.4 Ideation Tools 159
10.5 Transforming Ideas into Business Model Prototypes 162
10.6 Aggregating Prototypes Stemming from Multiple Ideas 165
References 166
11 Managing Uncertainty Through Experiment-Based Validation 167
11.1 Validating Objectives 168
11.2 The Validating Process 168
11.3 Formulating Assumptions 170
11.4 Classifying and Prioritizing Assumptions 172
11.5 Designing and Conducting Experiments 173
11.5.1 Typical Experiments 175
11.5.1.1 Mock-up or Prototype Feedback 175
11.5.1.2 Confirmatory Interviews 176
11.5.1.3 Split Testing 176
11.5.1.4 Surveys 177
11.6 Validating Desirability, Viability, and Feasibility 177
11.6.1 Validating Desirability 178
11.6.2 Validating Viability 179
11.6.3 Validating Feasibility 179
11.7 Risks to Avoid 180
References 180
Exposing the Designed Strategy to the Competitive Environment 181
12 Exploiting Findings from Game Theory to Succeed in a Competitive Environment 182
12.1 What Competitive Advantage Means 182
12.2 Understanding How to Compete 183
12.2.1 Competing on Differentiation or Uniqueness 184
12.2.2 Competing by Being Superior 185
12.2.3 Handling Indifference 185
12.3 The Competing Process 186
12.4 The Competitive Landscape 187
12.4.1 Identifying Key Players 187
12.4.1.1 Customers 187
12.4.1.2 Competitors 189
12.4.1.3 Complementors 189
12.4.1.4 Employees 189
12.4.1.5 Suppliers 190
12.4.1.6 Investors 190
12.4.1.7 Regulators 190
12.4.2 Possible Strategies for Competing 191
12.5 The Business Model in the Competitive Environment 192
12.6 Designing the Firm’s Competitive Advantage 193
12.6.1 Customers Based Competitive Advantage 194
12.6.2 Offerings Based Competitive Advantage 196
12.6.3 Capabilities Based Competitive Advantage 196
12.6.4 Financials Based Competitive Advantage 196
12.7 Winning the Competition Game by Sustaining a Competitive Advantage Using Game Theory 197
12.7.1 Competitive Equilibrium 198
12.7.2 Modeling Competition Using Game Trees 200
References 201
13 Laying the Groundwork for Strategy Implementation Through Stakeholder Focused Communication 202
13.1 The Communicating Process 203
13.2 Understanding the Ground Rules 203
13.3 Identifying the Audience 205
13.3.1 Internal Audience 205
13.3.2 External Audience 206
13.3.3 Looking at the Audience from a Different Perspective 206
13.4 Selecting Communication Channels 207
13.4.1 Face-to-Face Communication 208
13.4.2 Electronic Communication 208
13.4.3 Print Communication 209
13.5 Laying-Out the Timeline 209
13.6 Preparing the Message 210
13.6.1 The Traditional Strategy Message 211
13.6.2 Crafting the Strategy Message in a Design Thinking World 211
13.7 Telling the Story 213
13.8 Validating that the Strategy Message is Understood 215
References 215
Index 216

Produkt-Details

• Erscheint lt. Verlag: 1.10.2019
• Reihe/Serie: Management for Professionals
• Reihe/Serie: Management for Professionals
• Zusatzinfo: XII, 219 p. 54 illus.
• Sprache: englisch
• Themenwelt: Mathematik / Informatik ► Mathematik ► Statistik
• Themenwelt: Mathematik / Informatik ► Mathematik ► Wahrscheinlichkeit / Kombinatorik
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Marketing / Vertrieb
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Business model innovation • business strategy development • Competitive advantage • Creative Strategy • design thinking • ethnography • human-centered design • start-up firms • Strategy development process
• ISBN-10: 3-030-25875-0 / 3030258750
• ISBN-13: 978-3-030-25875-7 / 9783030258757