Design Meets Business; Design Thinking 2019

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Ryan Rumsey CEO/Founder, Second Wave Dive LLC @ryanrumsey Design meets Business

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For the next 30 minutes… DESIGN MEETS BUSINESS @RYANRUMSEY

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Design is all the rage right now DESIGN MEETS BUSINESS @RYANRUMSEY

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DESIGN MEETS BUSINESS @RYANRUMSEY

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DESIGN MEETS BUSINESS @RYANRUMSEY

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DESIGN MEETS BUSINESS @RYANRUMSEY Source: https://ninelabs.com/blog/business-value-of-design/

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Design Business Technology DESIGN MEETS BUSINESS @RYANRUMSEY Our favorite Venn worked!

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DESIGN MEETS BUSINESS @RYANRUMSEY Source: https://www.!ickr.com/photos/89228431@N06/11080482376; https://www.!ickr.com/photos/k2space/14257556613; https://commons.wikimedia.org/wiki/File:Poker_Table.jpg

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DESIGN MEETS BUSINESS @RYANRUMSEY

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This is not one of those talks DESIGN MEETS BUSINESS @RYANRUMSEY

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Why am I here? DESIGN MEETS BUSINESS @RYANRUMSEY

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Hello! I’m Ryan. DESIGN MEETS BUSINESS @RYANRUMSEY

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An Experience Strategy is how to create market di!erentiation with a distinct product or service o!ering. DESIGN MEETS BUSINESS @RYANRUMSEY

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Our team brings a novel means to management consulting; addressing gaps between business, product and design strategy. DESIGN MEETS BUSINESS @RYANRUMSEY

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We apply design and business methodologies with the objective of determining the business viability of experiences. DESIGN MEETS BUSINESS @RYANRUMSEY

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DESIGN MEETS BUSINESS @RYANRUMSEY Past influence Source: https://www.forrester.com/report/Demystifying+The+Language+Of+CX+And+UX/-/E-RES144655

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UX CX DESIGN MEETS BUSINESS @RYANRUMSEY Past influence Source: https://www.forrester.com/report/Demystifying+The+Language+Of+CX+And+UX/-/E-RES144655

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The perceived value customers have in interactions with your company. The perceived value users have in interactions with your product or service. UX CX DESIGN MEETS BUSINESS @RYANRUMSEY Past influence Source: https://www.forrester.com/report/Demystifying+The+Language+Of+CX+And+UX/-/E-RES144655

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Design Experience DESIGN MEETS BUSINESS @RYANRUMSEY The perceived value colleagues and stakeholders have in interactions with design work and design teams.

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DESIGN MEETS BUSINESS @RYANRUMSEY Why am I here?

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Source: https://www.amazon.com/Dark-Matter-Trojan-Horses-Vocabulary/dp/0992914639 DESIGN MEETS BUSINESS @RYANRUMSEY “For all the value they could create, too o"en designers appear naive in the face of genuinely understanding cultures of decision-making.” - Dan Hill, Dark matter and trojan horses. A strategic design vocabulary.

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Why am I here? Many business leaders are still struggling to understand the value design brings to everyday processes, funding decisions, resource allocations, and overall business viability… DESIGN MEETS BUSINESS @RYANRUMSEY

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Why am I here? O"en resulting in false starts, team frustrations, colleague and stakeholder confusion, and employee turnover. DESIGN MEETS BUSINESS @RYANRUMSEY

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Why am I here? DESIGN MEETS BUSINESS @RYANRUMSEY Investment in design work is o"en still questioned.

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Why is this? DESIGN MEETS BUSINESS @RYANRUMSEY 1. The perceived value of design. 1 2. The parlance of our times. 2 3. The priorities of prioritizing. 3

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The perceived value of design. 1 DESIGN MEETS BUSINESS @RYANRUMSEY

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The perceived value of design. 1 = Perceived Value Perceived Benefits - Costs Costs DESIGN MEETS BUSINESS @RYANRUMSEY

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The perceived value of design. 1 DESIGN MEETS BUSINESS @RYANRUMSEY How do your business partners perceive the bene"ts of design in your organization?

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The perceived value of design. 1 DESIGN MEETS BUSINESS @RYANRUMSEY How do your business partners perceive the bene"ts of design work in your organization?

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The perceived value of design. 1 DESIGN MEETS BUSINESS @RYANRUMSEY Designers must do better with recognizing these perception problems.

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The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY

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The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Words are funny and we keep using them.

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The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Expects… Schedules Agendas Examples Proof Numbers Expects… Trust & Patience New behavior New thinking “Imagination”  “Creativity” Design Business Talks about… Innovation Breakthroughs Disruption Results Impact Source: Tom Mulhern and Steve Portigal Same language, di!erent expectations?

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The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Source: Leah Buley, Co There are some overlaps—and some gaps. BUSINESS STRATEGY XD STRATEGY COMPETITIVE FORCES ? What’s happening around us? MARKET OPPORTUNITY HUMAN INSIGHTS What do people need? DIFFERENTIATION XD CHARACTERISTICS How can we uniquely help? ? INSPIRATION & VISION What would that look like? A PLAN XD BREADTH & DEPTH What do we need to do? Overlaps and gaps in meaning.

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The parlance of our times. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Lack of clarity in what we mean = misalignment.

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The priorities of prioritizing. 3 DESIGN MEETS BUSINESS @RYANRUMSEY

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The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY 1. User 2. Business 3. Team 4. Self - Kate Aronowitz; Design Partner at GV Source: https://medium.com/@katearonowitz/who-sets-your-priorities-6283910549c0; https://twitter.com/mrabdussalam/status/923902822969733121

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The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Design Business Technology Are you prioritizing the overlap?

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The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Ever notice these circles overlap? Design Business Technology Are you prioritizing the overlap?

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The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Ever notice these circles overlap? Business partners are embracing this overlap with Design Thinking. They are closer to design than designers are to business. Design Business Technology Are you prioritizing the overlap?

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The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Ever notice these circles overlap? Business partners are embracing this overlap with Design Thinking. They are closer to design than designers are to business. Designers should be spending ~20% of their time embracing this overlap. Design Business Technology Are you prioritizing the overlap?

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The priorities of others. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Prioritization is hard and to do it well, it requires less "nger- pointing.

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Rabbit hole moment! DESIGN MEETS BUSINESS @RYANRUMSEY

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Design Business Technology DESIGN MEETS BUSINESS @RYANRUMSEY This Venn means many di!erent things at once!

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Design Business Technology DESIGN MEETS BUSINESS @RYANRUMSEY How do I know I have it? Is it Design Thinking? Is it UX? Is it Product Management? Is it Innovation? This Venn means many di!erent things at once!

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DESIGN MEETS BUSINESS @RYANRUMSEY Design Business Technology Let’s make an assumption.

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DESIGN MEETS BUSINESS @RYANRUMSEY Design Business Technology Innovation Let’s make an assumption.

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DESIGN MEETS BUSINESS @RYANRUMSEY What makes an innovation successful?

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Innovation DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.

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Radical Incremental Innovation DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.

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Radical Incremental Improvements within a given frame of solutions (i.e., “doing better what we already do”) A change of frame (i.e., “doing what we did not do before”) Innovation DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.

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Radical Incremental Improvements within a given frame of solutions (i.e., “doing better what we already do”) A change of frame (i.e., “doing what we did not do before”) Innovation NOVEL UNIQUE ADOPTED DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.

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Radical Incremental Improvements within a given frame of solutions (i.e., “doing better what we already do”) A change of frame (i.e., “doing what we did not do before”) Innovation NOVEL UNIQUE ADOPTED DESIGN MEETS BUSINESS @RYANRUMSEY Source: Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research versus technology and meaning change. Design Issues, 30(1), 78-96.

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Back out of the rabbit hole! DESIGN MEETS BUSINESS @RYANRUMSEY

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A few perspectives DESIGN MEETS BUSINESS @RYANRUMSEY

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Some of my perspectives DESIGN MEETS BUSINESS @RYANRUMSEY Articulating how design work "ts into business processes is a design problem to solve.

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Some of my perspectives DESIGN MEETS BUSINESS @RYANRUMSEY To calculate perceived value, designers have to do better with calculating the perceived bene"ts of their contributions.

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Some of my perspectives DESIGN MEETS BUSINESS @RYANRUMSEY By framing the value of design through business lenses, designers frame the value of design work to business leaders.

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DESIGN MEETS BUSINESS @RYANRUMSEY Congrats! These are your problems to solve.

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How might we do that? DESIGN MEETS BUSINESS @RYANRUMSEY

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DESIGN MEETS BUSINESS @RYANRUMSEY Use design to develop your business potential.

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DESIGN MEETS BUSINESS @RYANRUMSEY Design Business Technology Embrace the overlap.

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DESIGN MEETS BUSINESS @RYANRUMSEY Winning in the market Design Business Technology Embrace the overlap.

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DESIGN MEETS BUSINESS @RYANRUMSEY 1. Remix design cra". 1 2. Embrace business culture. 2 3. Understand the math. 3 Welcome to bSchool!

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Mix and re-use elements in a di$erent way.

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Colleagues and stakeholders are humans too.

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Framing the Now How Might We Explore Potentials Identify & Release Diverging Diverging Converging Converging Use design to understand colleagues like they are users.

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Strategyzer, https://strategyzer.com/canvas/value-proposition-canvas ; http://www.givegoodux.com/getting-stakeholder-buy-in-for-ux-work/ Observe partners to determine what they think, feel, say, and do.

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Strategyzer, https://strategyzer.com/canvas/value-proposition-canvas ; http://www.givegoodux.com/getting-stakeholder-buy-in-for-ux-work/ Listen to your partners to understand their pains and gains.

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Activities Skills Address those pains and gains with your work.

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY People, Projects (-) Influence (+) (-) Willing to experiment (+) Identify willing partners to test assumptions with.

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Create a value proposition to sell pain relievers and gain creators.

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Business culture is a manifestation of business processes.

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Business leaders are accountable for setting the pace and quality of decision-making.

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY ECONOMIC VALUE CUSTOMER VALUE EMPLOYEE VALUE SHAREHOLDER VALUE BUSINESS PROCESSES PARTNER VALUE ORGANIZATIONAL DESIGN PROCESS DESIGN SOCIETAL VALUE STRATEGIC DIRECTION SUPPLIER VALUE PERFORMANCE METRICS Business leaders have consider a variety of lenses when making decisions.

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Vision and Strategy Financial “To succeed ﬁnancially, how should we appear to our stakeholders?” Objectives Measure Targets Initiatives Customer “To achieve our vision, how should we appear to our Objectives Measure Targets Initiatives Learning & Growth “To achieve our vision, how will we sustain our ability to change and improve?” Objectives Measure Targets Initiatives Internal Busin “To satisfy our shareholders and customers, what business processes must we excel at?” Objectiv Discover how business success is communicated.

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Status Observe how work progress is communicated.

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY WHAT HOW WHY WHO Value Proposition Pro!t Mechanism Value Chain Ask leaders what the business model is.

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Embrace business culture. 2 DESIGN MEETS BUSINESS @RYANRUMSEY Read the room instead of gasping at fonts, colors, and layouts?

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Remix design cra". 1 DESIGN MEETS BUSINESS @RYANRUMSEY Ask partners for plans that worked and reverse engineer them.

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Desirability meets viability through numbers.

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Start with math assumptions to challenge business assumptions.

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY = x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned Example: ROI of Retention

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY = x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned An example = x x 1,900,000 $100 (12%-10%) $3.8M

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is business viability. Project costs should not exceed this! = x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned An example = x x 1,900,000 $100 (12%-10%) $3.8M

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is business viability. Project costs should not exceed this! Typically, this number comes from segment data. That segment may contain one or more personas to align to. = x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned An example = x x 1,900,000 $100 (12%-10%) $3.8M

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is business viability. Project costs should not exceed this! Typically, this number comes from segment data. That segment may contain one or more personas to align to. Here’s your target to test di!erent solutions against. In this hypothetical, can we project an increase in retention? = x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned An example = x x 1,900,000 $100 (12%-10%) $3.8M

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY This is business viability. Project costs should not exceed this! Typically, this number comes from segment data. That segment may contain one or more personas to align to. Here’s your target to test di!erent solutions against. In this hypothetical, can we project an increase in retention? Without a base value, we can’t calculate an ROI. = x x Number   of customers Annual customer value Projected rate   minus  current rate Incremental dollars   earned An example = x x 1,900,000 $100 (12%-10%) $3.8M

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY TEST B (Time on task) TEST A (Do nothing) TEST C (Satisfaction %) (12% - 10%) Did any work? Identify options for testing. Options drive accountability.

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Year 1 Year 2 Year 3 Total (Present Value) Total (Risk Adjusted Total bene!ts $1,500,000 $3,600,000 $4,100,000 $3,800,00 Total costs -$500,000 -$200,000 -$100,000 $800,000 $1,000,00 Net Cash Flow -$-500,000 $800,000 $3,300,000 $3,300,000 $2,800,00 Total ROI 280% Option B: Time on task improvements Show costs and bene"ts of each option.

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Understand the math. 3 DESIGN MEETS BUSINESS @RYANRUMSEY Desirability Scorecard Strengths Weaknesses Opportunities Threats • No extra cost expenditures towards capabilities or planning • Resources will not be allocated and can be focused on business as usual tasks • No remarkable growth can be increasing productivity • Users will continue to have to r representatives in the phone ch situation • Resources not spent on new capabilities could be directed towards training and employee incentives • Allows for further research and on current economic climate and focus on other potential future opportunities • Org remains vulnerable to mar • Member satisfaction may dimi expectations grow across the in • Decreased member retention a needs remain unfulfilled Desirability Score 84.00% B Usability 86.9% B Functionality 91.9% A Adoption 64.5% D Communication 87.9% B SWOT Analysis Show the risks and strengths of options to recommend a path forward.

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Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY

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Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY The most di!icult challenge I’ve had (professionally) is designing for my colleagues and stakeholders.

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Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY Investing in design work is a business decision.

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Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY Business leaders will prioritize design perspectives of users when it’s good for business.

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Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY When it’s good for business, the perceived bene"ts of design work become actual business value.

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Closing thoughts DESIGN MEETS BUSINESS @RYANRUMSEY Go design your business potential!

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Resources DESIGN MEETS BUSINESS @RYANRUMSEY beyondusers.com altmba.com Beyond Users dMBA altMBA LEARN THE BASICS OF BUSINESS

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At Second Wave Dive, we embrace the overlaps. DESIGN MEETS BUSINESS @RYANRUMSEY BEYOND THE BASICS Winning in the market Design Business Technology

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DESIGN MEETS BUSINESS @RYANRUMSEY BEYOND THE BASICS secondwavedive.com 6-week online masterclasses that dive into the intersection of business and design.

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Thank you! ryan@secondwavedive.com @ryanrumsey @secondwavedive DESIGN MEETS BUSINESS @RYANRUMSEY