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Behavioral Science + Product Innovation = ❤ FITC Spotlight UX | @bermonpainter

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 2

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 3 Behavioral Science Behavioral Economics User Experience Product Innovation + + =

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 4 B E H A V I O R A L S C I E N C E Understanding how people’s thoughts, feelings, and actions lead to specific behaviors.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 5 B E H A V I O R A L E C O N O M I C S Combines our understanding of people’s behaviors and how they use their money or other resources.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 6 U S E R E X P E R I E N C E Understanding of how people feel when they’re using a product, service or other types of experiences.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 7 P R O D U C T I N N O V A T I O N Finding new ways to solve complex problems in ways that generate viable solutions and create value.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 8 “The integration of behavioral science, behavioral economics, and UX design principles will create more engaging, intuitive, and effective user experiences O P I N I O N

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 9 P A R T I How We Think Behavioral Science + Product Innovation = ❤. | @bermonpainter

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 10 1H O W W E T H I N K Intuitive & Automatic Our brains operate automatically, quickly, with little or no effort, and no sense of voluntary control. It's our intuitive, automatic, and immediate mode of thinking. For instance, when you see 2+2, your mind instantly comes up with the answer

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 11

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 12 2 H O W W E T H I N K Deliberate & Analytical Our brains operate deliberative, slow, and effortful. It's our conscious, rational, and analytical mode of thinking. Consider a more complex math problem, like 17x24, you made need to think about it a little more.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 13

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 14 “We can be blind to the obvious, and we are also blind to our blindness. Daniel Kahneman Thinking, Fast and Slow

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 15 P A R T I I How We Decide Behavioral Science + Product Innovation = | @bermonpainter

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 16 1H O W W E D E C I D E Gentle Nudges Subtle design choices that can influence the decisions and behaviors of individuals in predictable ways.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 17

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 18

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 19 Understand the Behavior Define the Desired Behavior Identify Nudge Opportunities Design the Nudge Test and Refine Evaluate and Monitor C R E A T I N G G E N T L E N U D G E S 1 2 3 4 5 6

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 20 “A nudge…alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives. Richard Thaler Nudge

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 21 2 H O W W E D E C I D E The Ability to Choose Choice architecture is the practice of influencing choice by organizing the context in which people make decisions.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 22

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 23 Understand the Decision- Maker Define the Decision Identify Choices Design the Choice Environment Test and Refine Evaluate and Monitor C R E A T I N G C H O I C E A R C H I T E C T U R E S 1 2 3 4 5 6

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 24 3 H O W W E D E C I D E Motivating Action Motivation is the driving force behind our actions based on our need for autonomy, mastery, and purpose.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 25

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 26 “The secret to high performance and satisfaction…is the deeply human need to direct our own lives, to learn and create new things, and to do better by ourselves and our world. Daniel Pink Drive

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 27 4 H O W W E D E C I D E Being Biased Systematic errors in thinking that affect the decisions and judgments individuals make.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 28

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 30 P A R T I I I Changing Behaviors Behavioral Science + Product Innovation = | @bermonpainter

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 31

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 32 The Orchestrating Innovation Framework 1. InnovationOps Model 2. Innovation Program Management 3. Innovation Delivery 1.1 Operational Logistics 1.1.1. Funding 1.1.2. Structure 1.1.3. Profit Model 1.1.4. Talent 1.1.5. Process 1.2 Portfolio Management 1.2.1. Risk Appetite 1.2.2. Strategic Alignment 1.2.3. Metrics & Performance 1.2.4. Differentiation 1.1.5. Ecosystem Building 1.3 Experience Strategy 1.3.1. Products, Services, Business Models, Processes, and Assets 1.3.2. Channel Alignment 1.3.3. Brand Strategy 1.3.4. Engagement 2.1. Vision & Objectives 2.2. Scope 2.3. Approach 2.4. Staffing Management 2.4. Metrics & Reporting 2.4. Budgeting 3.1. Intake 3.1.1. Qualification 3.1.2. Opportunity Recognition 3.1.3. Scoping & Sizing 3.2. Discovery 3.2.1. Primary Research 3.2.2. Secondary Research 3.2.3. Market Analysis 3.2.4. Competitive Analysis 3.3. Experimentation 3.3.1. Frame Assumptions 3.3.2. Create Hypothesis 3.3.3. Brainstorm Solutions 3.3.4. Prioritize Focus Areas 3.3.5. Build Rapid Prototypes 3.3.6. Validate & Measure 3.3.7. Synthesize Learnings 3.4. Business Case 3.4.1. Risk Analysis 3.4.2. Value Proposition 3.4.3. Financial Modeling/ROI 3.4.5. Recommendations 3.5. Decision 3.5.1. Go-to-Market 3.5.2. Pivot 3.5.3. Discontinue Transition & Scale _build Element Lab Local Market Other Partner Internal Team Nearshore / Offshore Partners (AWS, MS, GCP) A well orchestrated, disciplined, and practical approach to innovation.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 33 Behavior-Based Test & Learn Model A rapid prototyping model leveraging behavioral design techniques to systematically influence human behavior in features, products, or services. Understand current pain points, unmet needs, and gather enough data to understand what’s happening in order to create one or more hypothesis statements to explore and validate. EXPLORE DISCOVER OBSERVE DETERMINE THE OPPORTUNITY HYPOTHESIZE VALIDATE FRAME ASSUMPTIONS IDENTIFY BEHAVIORS CONCLUDE GENERATE SCENARIOS NARROW FOCUS BUILD MEASURE LEARN DETERMINE ALIGNMENT DECIDE Begin to understand the “what” by leveraging behavioral design heuristics (e.g. endowed progress, social proof, framing, anchoring, etc.) Define the problem areas and reframe them as an opportunity statements. Create associated behavioral KPI’s. Form initial hypothesis statements that articulate the action, change, and measure expected then begin to explore the problem-solution fit. Begin to explore problem-solution fit scenarios that are human-needs based, narrow your focus and prioritize what will be built and tested. Where you have any gaps in data or understanding, clearly articulate any assumptions being made. Identify the behaviors you want to reinforce by leveraging the CAR model (cues, actions, and rewards) Refine your earlier hypothesis statement to include your newly identified behaviors. Prioritize your scenarios based on impact/complexity, determine what will be built, how you will validate, and the appropriate prototyping fidelity and method. Create rapid prototypes that can easily be validated with end-users, measure against clear criteria, and document the main learnings. Determine the appropriate method and fidelity for the rapid prototype (e.g. mockup, clickable prototypes, simulations, stories) and only build what’s needed to successfully validate your hypothesis. Create a test plan, determine the appropriate testing method (e.g. usability tests, contextual inquiries, tree tests, card sorts) and capture data from end-users. Synthesize the test results and determine if the defined target behaviors were achieved and if the hypothesis was validated or invalidated. The KANO model may be helpful to visualize the results. Create your final business case and recommend the direction that should be taken based on the results. Articulate how well the solution aligns to core business and customer needs, adds value to the existing product or service, and the feasibility to implement and scale. Recommend a direction forward based on the data gathered, validity of the hypothesis, and alignment to core business and customer needs. The intent is to help the organization understand whether to continue to invest in the proposed solution or move on and explore other challenges.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 34 Identify Innovative Opportunities We leverage an Open Innovation model to train the organization how to think about how to solve challenges and uncover the most valuable opportunities differently. Align Teams We align teams around the problem-solution fit scenarios, narrow our focus and prioritize what will be built, tested, and measured. Explore Concepts We adopt a mix of lean, design thinking and agile methodologies to quickly explore and create new tangible business concepts that can be validated. Validate Prototypes We validate concepts with end- users, measure against clear criteria, and document the main learnings to help determine what to prioritize and bring to market. Decide what to Bring to Market We create a robust business case to determine which solutions generated sufficient value and should move forward and which should not. Build, Pilot & Scale We follow an agile deliver model to implement the chosen solutions and prepare for an initial pilot or full market roll-out with a core focus on driving growth. 1-4 weeks 1-2 weeks 3-12 weeks 2-4 weeks 1-2 weeks 12+ weeks Putting Everything Together

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 38 Identify Innovative Opportunities We leverage an Open Innovation model to train the organization how to think about how to solve challenges and uncover the most valuable opportunities differently. • Art-of-the possible workshops • Future-back workshops • Primary & secondary research • Competitive analysis • Behavioral design analysis • Opportunity prioritization • Initial hypothesis statements Align Teams We align teams around the problem-solution fit scenarios, narrow our focus and prioritize what will be built, tested, and measured. • Vision & KPI workshops • Problem-solution fit workshops • Scenario & solution planning • Value stream identification • Portfolio alignment • Venture partnerships • Innovation brief Explore Concepts We adopt a mix of lean, design thinking and agile methodologies to quickly explore and create new tangible business concepts that can be validated. • Task & workflow mapping • Choice architectures • Service blueprints • Feature definition • Brand exploration • Experience design • Rapid prototypes Validate Prototypes We validate concepts with end- users, measure against clear criteria, and document the main learnings to help determine what to prioritize and bring to market. • Validation plan • Contextual inquiries • Surveys • Market testing • Validation synthesis Decide what to Bring to Market We create a robust business case to determine which solutions generated sufficient value and should move forward and which should not. • Risk analysis • Value proposition • Market-fit results • ROI modeling • Value stream mapping • Roadmap alignment • Portfolio alignment • Executive presentation Build, Pilot & Scale We follow an agile deliver model to implement the chosen solutions and prepare for an initial pilot or full market roll-out with a core focus on driving growth. • Agile delivery • Cloud & infrastructure modernization • QA testing • Pilot strategy • Go-to-market strategy • Release roadmap • Change management • Transition strategy 1-4 weeks 1-2 weeks 3-12 weeks 2-4 weeks 1-2 weeks 12+ weeks Product Innovation Accelerator

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 39 “Effective behavior change design requires a deep understanding of users' behavior, motivations, and context, and the creativity to design solutions that meet them where they. Stephen Wendel Designing for Behavior Change

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Behavioral Science + Product Innovation = ❤ | @bermonpainter Dowser story Knowing where to dig, is more important than the digging itself 40 Image of dowsing – somebody walking through a field (AI generated?) Berm on

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 41 Knowing where to dig is more important than the digging itself

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 42 1T H R E E T A K E A W A Y S Successful product innovation depends far more on knowing where valuable opportunities exist over how to innovate

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 43 2 T H R E E T A K E A W A Y S Altering people's behaviors require ethics and the presence of choice without significantly changing their economic outcomes in a negative way.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 44 3 T H R E E T A K E A W A Y S While creativity can involve exploring crazy ideas, serious ideas must be grounded in viability and feasibility.

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 45 M. Bermon Painter G L O B A L I N N O V AT I O N & D E S I G N L E A D E R Virtual Office Hours Every Friday from 7-9am EST https://calendly.com/bermon-painter Social Media @bermonpainter innovation@slalom.com

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Behavioral Science + Product Innovation = ❤ | @bermonpainter 46 What questions do you have? Behavioral Science + Product Innovation = | @bermonpainter