Module 4

Design Thinking for Strategic Innovation

Strategic Management

• Strategic management is the process of setting goals, procedures, and

objectives in order to make a company or organization more
competitive. Typically, strategic management looks at effectively
deploying staff and resources to achieve these goals.
• Strategic management involves developing and implementing plans to
help an organization achieve its goals and objectives. This process can
include formulating strategy, planning organizational structure and
resource allocation, leading change initiatives, and controlling
processes and resources.
5.Stages
• The five stages of the process are goal-setting, analysis, strategy
formation, strategy implementation and strategy monitoring.
• Clarify Your Vision. The purpose of goal-setting is to clarify the vision
for your business. ...
• Gather and Analyze Information. ...
• Formulate a Strategy. ...
• Implement Your Strategy. ...
• Evaluate and Control.
Contd..
• Innovation Management
• It is the concept which has multiple aspects and dimensions and are contributed
based on the multiple disciplines of the study that has a various theories and
frameworks.
• Gartner defines innovation management as a business discipline that aims to
drive a repeatable, sustainable innovation process or culture within an
organization. Innovation management initiatives focus on disruptive or step
changes that transform the business in some significant way.
• Types of Innovations
• There are four types of innovations which are (1) Disruptive vs Sustaining
innovation (2) Radical vs incremental innovation (3) Innovation matrix (4)
Architectural vs Modular innovation
(1) Disruptive vs Sustaining
innovation
• Disruptive innovation refers to the process of transforming an
expensive or highly sophisticated product, offering, or service into one
that is simpler, more affordable, and accessible to a broader
population.
• Sustaining innovation is a type of incremental improvement that helps
an organization maintain its competitive advantage by improving the
features and performance of existing products, processes, and
services.
1. Disruptive vs. Sustaining
innovation

• The concept of disruptive innovation is related to the concept, product or service

which will create new value to the existing market and also create a completely
new market. While the sustaining innovation is based concept of improving and
growing the existing markets.

• 2. Radical vs. incremental innovation

• Radical innovation happens when a new technology completely disrupts existing
business or economy and creates a new business model. Incremental innovation,
in turn, refers to a series of small, gradually built improvements to existing
products, processes or methods to maintain competitive position over time.
Contd..
• Radical innovation is a type of innovation that combines the power of
technology with a new business model. It is a concept that changes
the relationship between customers and suppliers by displacing
current products and services or by making new product categories
• Incremental innovation is a series of small improvements or upgrades
made to a company's existing products, services, processes or
methods. The changes implemented through incremental innovation
are usually focused on improving an existing product's development
efficiency, productivity and competitive differentiation.
The Innovation Matrix

• To clarify the aforementioned dimensions and to better demonstrate

them, we took all four terms and combined them with our Innovation
Matrix. Radically disruptive – Innovation that harnesses new
technology and creates a new business model. Has no clear
competitors. Radically sustaining – Improvement on a product or
process in an existing market that provides new value for the
customer. Incrementally disruptive – An incremental improvement in
technology that leads to a dramatic disruption. Incrementally
sustaining – Small and cumulative changes in an existing product,
technology or service.
Contd..
• The most common structure for an innovation matrix is a two-by-two
grid with four quadrants or sections and two axes. The quadrants
often represent various types of innovations. The axes are parameters
that measure a particular innovation's position on the grid, which
determines its value proposition.
Contd..

• 4. Architectural vs. Modular Innovation

• Architectural innovation is described as the reconfiguration of existing product
technologies. Modular innovation (or component innovation), on the contrary,
is the exact opposite. In modular innovations, one or more components of a
product is changed while the overall design stays the same.
• Strategic Innovation
• Strategic innovation is an organization's process of reinventing or redesigning
its corporate strategy to drive business growth, generate value for the company
and its customers, and create competitive advantage. This type of innovation is
essential for organizations to adapt to the speed of technology change.
Contd..
• Architectural innovation occurs when new products or services use
existing technology to create new markets and/or new consumers
that did not purchase that item before. For example, the smart watch
used existing cell phone technology and was repackaged into a watch.
• Modular Innovation is a technique that uses either a complete
redesign of a product or service or core elements of a product while
leaving the links between these elements in the usual positions. It is a
framework that allows data to be shared and reused across
applications, enterprises, and communities.
Strategic Innovation

• Strategic innovation is an organization's process of reinventing or

redesigning its corporate strategy to drive business growth, generate
value for the company and its customers, and create competitive
advantage. This type of innovation is essential for organizations to
adapt to the speed of technology change.
• Features of Strategic Innovation
• Strategic innovation demands for holistic approach towards the
activities of the organizations at various levels in the organization. The
features of strategic innovation are as under;
Contd..

• 1. This concept is based on the long-term perspectives and is developed based on

the developing strategic which matches the innovations in the organization.
• 2. The main objective of strategic innovation is to create competitive space for the
products and services offered by the organization.
• 3. The process of strategic innovation combines business process with creative
solutions to the problems in the organizations.
• 4. Collect information about the business from unconventional sources and provide
innovative strategy for the challenges in the organization.
• 5. Development of the organization process which can accommodate the changes
in the organization and build robots business process and procedures in the
organization.
Scope of Strategic Innovation

• The scope of strategic innovation is based on the seven dimensions which include (1)
Managed innovation process (2) Strategic alignment (3) Industry foresight (4) Customer
Insight (5) Technology (6) Organization Readiness (7) Implementation
• 1. Managed Innovation: In this process the facilitating process includes external and
internal perceptive with regards to organization capabilities, process, procedures and
customers.
• 2. Strategic Alignment: This is created for development of shared vision, goals and
actions among the key stakeholders in the organization.
• 3. Industry Foresight: This process includes deeper understanding of the driving forces,
influence of the new technology, competition dynamics and changing market trends.
• 4. Customer Insight: Strategic innovation provides deeper understanding of the
customers’ needs and demands and provide innovative strategic for the growth of the
market.
Contd..

• 5. Technology: The perspective of technology is assessed through strategic

innovation on the aspect of internal technology capabilities, organization
capabilities and reaching higher customer satisfaction.
• 6. Readiness of the organization: Strategic innovation provides an insight on
the readiness of the company to the changing innovations and also provides
insights on the capability of the organization to accept the changes in the
business environment.
• 7. Implementation: Strategic innovation provides an insight on the process of
implementation of the strategy through the aspect of process and procedures
and policies which align the organization to the innovation in the organization.
Design Thinking and Strategic
Innovation
• Design Thinking is a human-centered approach to innovation that
integrates customer emotion and empathy, the possibilities of digital
tech and analytics, and the requirements for business success.
Integration of the strategy supports in the reaching the market better
and improving the competitiveness of the firms in the market.
• In order to link design thinking and strategic innovation. Design
thinking is based on the mental activity in understanding the things
and process of the organization. While strategic innovation is based
on the concept of strategic management. Interaction between the
design thinking and strategic innovation provides following benefits,
they are as under;
CONTD..

• 1. Concept of design thinking has supported in developing products

and services which match the expectation of the customers and there
by supporting the strategy of the organization.
• 2. Design thinking provides an opportunity to integration of new ideas
and thinking which is essential for the development of right strategy
for the organization.
Practices of Integrating Design Thinking in
Strategic Innovation

• Design thinking and strategic innovation has four practices they are (1)
Reviewing (2) Simulating (3) Conversing (4) Collaborating.
• Reviewing: Design thinking is based on the data collected through various
sources, which include customers, employees and other stake holders. Based
on the data collected protype is developed through the concept of design
thinking. These development support in development of right strategy for
the innovation in the organization.
• Simulating: The concept of simulation provides insights on the experience of
the individual in the real world of business. Simulating opens up strategy
practice because it provokes managers to form an empathetic engagement
with the customer experience, thereby making the market context
immediately appraisable.
Contd..
• Conversing: Conversing was particularly important in enabling
collective reflection and getting agreement between participants with
diverse understandings of the strategy. In order words, this aspect of
design-led strategizing amplified managers’ attention to the real fit
within product-market fit.
• Collaborating: This practice was especially useful when teams were
dealing with complex issues that could easily be forgotten or lost in
conversational dialogue. Rather than trying to empathetically
understand each manager’s perspective (as in the conversing practice)
the focus in collaborative translation was on generating a shared
solution to a complex problem.
Module-5, Design Thinking
Workshop
• a meeting at which a group of people engage in intensive discussion and activity on a
particular subject or project.
• Design thinking workshop is a collaborative, work-based session built around the Design
Thinking process. Usually, these are done in person, but you can adapt and run a long-
distance design workshop. It can take up to two hours, two days, or a whole week — all
depending on the context of the workshop.
• Focus of Design Thinking workshop
• 1. Sensitivity: Addressing the real user problem and building empathy for targeted
users / customers.
• 2. Ideas, innovation, and problem solving: Generating multiple ideas and possible
solutions.
• 3. Prototyping and testing: Creating prototypes that are less reliable in the ideas
produced, suitable for testing to real users or agents.
Need for Design Thinking
Workshop
• 1. Design Thinking into your process will help you to quickly come up with viable,
user-centric solutions which results in improved customer satisfaction and greater
cost saving to the organization.
• 2. Design Thinking workshops enables to build better organization culture with the
focus of creativity and supports in growth of the organization.
• 3. Supports in developing skills of the employees by providing training in the domain
of problem solving and providing better solutions to the challenges on the job.
• 4. Development of innovation in a team culture through collaborated learning in the
design thinking workshop.
• 5. Design thinking workshop supports in developing competitive advantage for the
organization and in return develops better products and services for the organizations
Stages of Design Thinking
Workshop
• Design thinking workshop are divided into two stages they are
planning stage and the workshop stage. The aspects include in the
planning stage include (1) Learning Goals (2) Pre-Meeting (3) Checking
of the ambience for workshop (4) Developing flow of activity (5) Study
Material for the workshop The workshop stage includes (1)
Introduction (2) Define Problem Statement (3) Idea Testing (4) (5)
Prototype (6) Testing (7) Feedback (8) Closing of the workshop
• Planning Stage of Design Thinking workshop
Planning Stage of Design Thinking
workshop
• Learning Goals: During this stage of design thinking workshop learning goals for the
workshop needs to be developed, the organizing team can collect information from
the participants, members of the unit head and other stake holders related to the
challenges faced in the organizations. During this stage learning outcomes are be
developed for focused outcome of the workshop. The learning outcomes needs to
well connect with the objectives of the workshop. This aspect supports in
developing right culture for the workshop on design thinking.
• Pre-Meeting: During this stage of workshop the organizing team needs to check for
the following aspects for making the workshop effectively, they are right
information on the purpose of the workshop, secondly, preparation of agenda for
the workshop. Thirdly, giving detailed information to the design thinking trainers on
the background of the trainees and work profile which include designation, age and
experience of the participants.
Contd..
• Checking the ambience of the workshop: The design thinking needs right
ambience of the conduct of the workshop which include seating arrangement,
venue and right electronic devices. The role of ambience is important for the
improving the learning process of the trainees during the workshop.
• Flow of Activities: Design thinking workshop needs to prepare the right type of
activities for providing right insights on the challenges related to the
organization’s problems. The organization needs to collaborate with the design
thinking trainers for development of activities for the workshop. The activities
include the games, lecture material and discussion points with the participants.
This supports in developing the right flow of activities during the workshop and
achievement of learning goals of the design thinking workshop.
Contd..
• Study Material for the workshop: Participants for the workshop needs to be provided
with right study material related to the workshop. The study material needs to be
provided to the participants one week the workshop, this supports them to prepare
well for the workshop. The study material needs to be aligned with the flow of
activities and agenda of the workshop on design thinking.
• In the next stage of design thinking workshop, the workshop process has to be
conducted during this stage following aspects are covered, they are as under;
• Introduction to the workshop: During this stage participants needs to define the right
thoughts that can guide the flow of the workshop. During this stage all five stages of
design thinking needs to be included which are sensitivity, explain, ideate, prototype
and evaluation. Further to improve the learning process, during the introduction
stage. Further, to set the stage for the workshop real world success stories are be
shared with the participants for improving the motivation of the participants.
Contd..
• Define Problem Statement: During this stage of workshop, the participants will reduce
the overall design challenge to the problem specific directions, in this stage, the trainers
apply concepts such as empathy mapping, in this mapping participants create vision
statement and prepare documents how to approach the problem statement. Further,
each participant would be allowed to present the problem statement and describe the
problem and through the discussion the trainer provides insight on relooking at the
problem statement which match to address the design challenge.
• Idea Testing: In the third stage of the workshop design thinking process consists of idea
development and providing possible solutions to the challenges. Concept such as
brainstorming and sharing of ideas is applied by the trainer during this stage of
workshop. Another popular concept applied during the stage is the mind mapping and
visual of the data to understand the problem and develop idea towards the solution to
the problem.
Contd…
• Prototype: During this stage participants are allowed to build and experiment with
the prototype based on the idea presented by the participant. During this stage
participants can conduct survey among the other participants and collect information
from the prototype developed. During this stage, trainers might apply making the
participants work in a team with an intension to provide better prototype for the
idea. Further, the trainers might also apply the tool of journey mapping to understand
the customers preference which supports in development of better prototype.
• Testing: In this stage, the prototype developed is assessed to suit the scenario of the
challenge and linked to the business process adapted in the organization. This insight
is provided to the participants to match with the organization and customers. Testing
stage provide greater insight on the acceptance of the prototype to the needs of the
organization and provide solutions to the problem statement.
Contd…
• Closing of the workshop: This is the last stage of the workshop where
in the trainers provide feedback to the participants and participants
are motivated to apply the concept of design thinking in the working
of the organization. They are appraised on the benefits of design
thinking in improving the work process of an employee.