INDEX: 2007 - User-centered design & innovation

INDEX:2007

HRH THE CROWN PRINCE IS PATRON OF INDEX: 2007

TABLE OF CONTENT

INDEX: inspires designers, business and societies alike to unfold the commercial and human potential in DESIGN TO IMPROVE LIFE.

3

editorial

4

user-centered design & innovation and ‘design fit for life’

6

history: the roots of user-centered design & innovation

7

anthropology

9

case: intel’s china home learning pc

10

mass customization - giving inches earning yards

14

lead users and lead customers

16

interview with jørgen rosted

INDEX: presents the best examples of Design to Improve

on the market is actually needed. Mattel uses very young

Life, awards the very best designs and gives access to the

female trend scouts; Lego ‘plays’ with its super Mindstorm

underlying processes, thinking and people. We do this by:

users; IDEO applies a wide range of human factors; and

• Awarding the largest design prize in the world in the

the Idea Factory creates its well-researched personas.

categories Body, Home, Work, Play and Community.

In this booklet, INDEX: introduces the general history

INDEX: Award is worth a total of €500 000 (€100 000

and thinking behind User-centered Design & Innovation

for each category).

juxtaposed against three different approaches that enable

• Presenting international design exhibitions.

you to gain an insight into the needs of users: the anthro-

• Hosting summits for the world leaders of design and

pology approach, the lead users approach, and mass

innovation.

• Publishing and distributing knowledge.

customization, all three followed by instructive cases.

We also look at the influence of user insight into the design of business models, services and strategy and look

If the focus is on Design to Improve Life, then why pub-

at the connection between Design to Improve Life,

lish a booklet on User-centered Design & Innovation?

User-centered Design & Innovation, and the program

The following parameters were decisive: Design to

for INDEX: 2007.

Improve Life can be created in many different ways, but 18

business model design - everybody’s business

the most unfailing processes must be the ones that build upon an in-depth insight into the needs of the users.

20

strategic design

22

case: made in korea

23

service design

24

case: umpqua bank

25

case: fresh start

26

un millennium development goals & global compact principles

For this reason, User-centered Design & Innovation deserves professional attention. But not the overwhelming attention that the concept – often interpreted only as anthropology-driven innovation – receives as the answer to the innovation dilemma, where innovation is mandatory. However, far too much investment in innovation fails. User-centered Design & Innovation is not a last resort. The attention needed is thus professional attention driven by the understanding that insight into the tacit and explicit needs of the users combined with the proper system to handle this insight can be a very valuable pathway

27

2005 winners and user-centered design

to innovation.

28

interview with program director lise vejse-klint

range of different approaches to ensure that what is put

User-centered Design & Innovation is a very wide

Enjoy!

Kigge Hvid, CEO, INDEX:

pg 03

ATTENTION

INDEX:2007 | pg 05

User-centered design:

DESIGN FIT FOR LIFE: INTRODUCTION

and use of fit and design. Other areas of design have to

change, modifications, experiments. A city is a process,

accommodate much more complex matters of fit.

not a product.

To take a user-centered approach to design and in-

The same thing can be said about design. Design

novation means to let fit prevail over form and function.

is iterative and unfolds in time. Important aspects of

Design must fit life and the world. The notion of fit is

iteration are repeated prototyping, trial and error. Design,

what differentiates modern user-centered design from

whether of a service or a product, must be subjected to

the earlier, historic, “functionalistic” design movements.

constant evaluation.

Instead of presenting features, design performs tasks. It is the translation of user needs into products or service

Hybridism: Linking Design for the World

requirements.

Design is often described as the creative link between

If anything, companies should learn from user-cen-

Perhaps this is why design plays an increasingly significant

applies to business strategies as well. To be user-centered

role in a world undergoing a process of hybridization.

User-centered Design & Innovation does not begin with

portance could be a pair of trousers. In this case, designers

is not one single strategy, but a diverse field of tactics.

the user; it begins with a vision: to offer better solutions

attach a great deal of importance to form and function:

Gaining knowledge about users’ explicit and tacit needs

to the market and thus have a better chance at success.

shape, color, lining, number and size of pockets, features

can be achieved through a variety of operations, and

However, to realize this vision, one needs to involve the

of the fabric, etc. – but all of these features might be

success depends on how this knowledge is utilized and

user, and the user must be involved from the beginning.

useless if fit is not taken into consideration. Who would

managed. The companies of today have to think about

Introducing the user at the earliest stages of the devel-

want a pair of trousers that did not fit, that was too large

how they can fit their users before they can begin to find

opment process gives a better shot at not introducing

or – perhaps even worse – too small? We know the notion

the fitted users.

something there is no use for on the market. To make

of fit in garments as size, and it is such a familiar part of

significant improvements in the lives of users, one must

clothing design that we almost don’t notice it. However, if

Travel Through Time

study them.

we look at other sectors of the design industry, we see that

The truth in the saying that “Rome wasn’t built in one

fit has gone unnoticed for too long.

day” is not only that things take time – they do – but that

Designers have always taken the end user into consideration: no news there. The difference is how this thinking

The fact that people come in different sizes is too

the Romans are still at it: still building, molding, assem-

obvious to go unnoticed. Even when mass-produced

bling. Rome, like any other city, is never finished, but

clothing replaced traditional customized clothing, which

constantly changing, adapting to the changing needs of

between the two classic considerations of design: form

in other industries meant an extreme standardization,

its inhabitants. Sometimes a striking universal form like

and function, both of them very important aspects of the

this fact was too apparent to be ignored. The industry met

the Pantheon is accomplished, but mostly, cities are about

user experience. Every now and then, changing fashions

its users halfway by reducing an infinite number of sizes

and ideologies allows one consideration to triumph over

to a limited number of preset ones which did not have the

the other, but Danish design has predominantly been

exact fit of tailored garments, but at least there was more

about bringing the two together into a coherent whole.

than one size.

is guided.

In the Danish context, the battle has always been

However, a third consideration has been lurking in

Clothing sizes have continually changed, with new

needs and means, which means it is of a hybrid nature.

tered strategies that one size never fits all, something that

USER-CENTERED DESIGN & INNOVATION AND ‘DESIGN TO IMPROVE LIFE’

the background for a long time: fit. The concept of fit has

sizes introduced at both ends of the scale as people varied

changing meanings in the world of design, sometimes

It would be very wrong to say that ‘Design to improve life’ only is made when using user-centered

more and more in size. At the start, different sizes were

referring to the designer’s sense of coherency in a design

innovation. Technology, skills and even occasions of divine inspiration have resulted in many designs

needed to fit the different body types, but today sizes do

object, and thus presenting itself as a feel, rather than a

that have improved the life of people significantly.

much more. The current vanity sizing trend, for example,

concrete and measurable parameter. This notion of fit is

meets a customer need for greater self-esteem by deviating

the one relating to the designer in the ivory tower, cut off

in a more goal oriented way. To improve the life of people, you must know what they need. Companies and

from the original size range, making people believe that

from the real world and the people in it. It is almost as

designers have in recent years come to the same conclusion; not everyone with the agenda of improving

they fit into smaller sizes.

life, but sometimes just to raise profit. Also the public sector has turned to the users of its services to

ungraspable a quality as beauty. But things are changing.

These two types of needs are very different from each

That said, user-centered design and innovation is the only way to work with ‘Design to improve life’

find better ways to cater for them.

With the new design practices, fit has finally become a

other: the first one is highly explicit, and the second one is

widespread tool for design.

not. No one goes into a shop with the explicit intention

be the same. Knowing what people need gives a head start to innovation, keeps it on track, gives better

of buying a size that is smaller than it really is. Vanity

chances for success and most importantly makes the world a better place.

As it relates to design, fit is not a new concept at all, but some parts of the design industry have had more of a

sizing is a service provided by manufacturers and retailers

tradition of considering fit than others. We know fit best

to cater for the customer’s tacit needs.

from the clothing industry. A simple example of its im-

Clothing is the simplest example of the importance

The ambitions might be different, but the means and the result as experienced by the user will often

Although we live in a world more technologically advanced than ever before, we do not face lesser or fewer problems than we used to. But our level of technology, skills and knowledge can give us hope that we by a joined effort can overcome some of the problems facing us.

Introduction to a Method:

THE ROOTS OF USERCENTERED DESIGN & INNOVATION

ANTHROPOLOGY

User-centered Design & Innovation as a concept has a

Everyone is talking about User-centered Design & Innovation in

Anthropology is about how people understand and see themselves

order to catalyze user-centered design. In Denmark it is even on the

and how they interact and understand other people and their

government politics agenda. It can be difficult to get a clear

surroundings. These are central competencies in a world that seems

overview over the many different practices associated with the

increasingly complex and globalized.

user-centered paradigm.

The tacit needs of consumers are best met with the introduction of the field of human factors to innovation.

Ethnographers, anthropologists and their like are able to translate the tacit needs of consumers into proper words and images. In close collaboration with designers and engineers, anthropologists now participate on a large scale in the research and development of new products

longer historical background and has at least three

and services. Thus design companies like IDEO and ZIBA

different historical roots:

design have risen to an almost star-like status with the

• Human factors studies

Ergonomics

introduction of anthropological research. Clearly, a

• Ergonomics

Ergonomics is a design discipline that concentrates on the

designer’s role in the anthropological field cannot be

• Usability testing

human body. Ergonomic design adapts to people’s comfort

appreciated enough.

and safety. Ergonomics makes design fit to the human

The anthropological approach to design has also

All three are utilized in different ways and to different

scale and the human body. Ergonomics has also been

been seen in the public sector, where the UK Design

degrees in modern User-centered Design & Innovation.

deployed by the military and the industry. Early twentieth-

Council’s RED initiative has shown how widely the method

century industrialists took great care to make the work-

can be used.

Human Factors Studies

place as effective a space as possible, not necessarily for

Human factors studies is at its core a multidisciplinary

the comfort of workers, but to achieve the highest pos-

conducted by anthropologists. This kind of research is a

discipline. It focuses on the cognitive and perceptual ele-

sible speed of production. The functionalistic movement

competency deeply rooted in the tradition of many de-

ments of people. Human factors design is conducted col-

of design from the 1920s onward was especially interested

sign schools, but the last ten years have seen a growth in

laboratively by anthropologists, psychologists, designers

in ergonomics. By reshaping everything from houses to

the splitting and specialization of design competencies.

and engineers. Human factors design is all about making

kitchen utensils, they hoped to ensure a greater ease of

things understandable and easy to use on a mental level.

use for the common man.

Like so many important innovations, human factors

Anthropological approaches are not necessarily

Anthropology analyzes material, social and political conditions, as well as values, symbols and systems of recognition in a comprehensive perspective. This method

studies has a military background: it was first thoroughly

Usability

of analysis uses both historical and contemporary analysis

explored during World War II, when it was applied in the

The research and philosophy originally developed for

and perceives society from both inside and outside. Anthro-

construction of aircraft. Many planes crashed in World War

digital interfaces only is today applied to many other

pology thereby places itself, with its analytical background,

II due to what we refer to as human error. But research-

fields. The notion of usability has especially been deployed

at the intersection between the traditions of social science

ers found that although it may have been down to human

in relation to computers, software, and digital interface

and humanities.

error, these errors could be prevented if the control system

development. The overall impact of usability on User-

had another interface. A lack of standardization and a lack

centered Design & Innovation does not have so much to

social subjects in a comparative perspective and through

of knowledge of the limits of people and their perceptual

do with its means and methods as with its very persistent

studies of social and cultural conditions, anthropology

abilities proved to be crucial during stressful situations.

focus on the user and the user experience. Handling

seeks to understand basic human conditions and how they

Researchers learned that people could not be trained to

computers has made many aware of the importance of us-

change. Anthropology paints a fuller picture, so to speak,

everything: the human mind had its boundaries.

ability, an awareness that has spilled over into other fields.

as it investigates habits and looks past tradition in order

By combining scientific traditions from humanities and

not to judge, but instead observe.

INDEX:2007 | pg 07

History:

Anthropological methods build on presence, interviews and participation and thereby form the basis of in-depth regional and theoretical knowledge.

There are various methods when it comes to “study-

INTEL’S CHINA HOMELEARNING PC

ing people approaches” in order to learn about a given group of people or a culture. The approaches include such general things as “participant observation” (a key method of study in cultural anthropology), as well as including more specific things such as survey research, archival research, and more.

Participant observation is a fundamental method of research used in cultural anthropology. It involves a researcher or researchers living within a given culture

One of the leading companies using large-scale anthropological

for an extended period of time, taking part in its daily life

research is INTEL, which has made several products based on this

in all its richness and diversity. In such an approach, the

kind of research.

anthropologist tries to experience a culture “from within,” as a person native to that culture does.

If for some reason there are no real users available for user research, companies can use personas instead. A persona is a mock user or potential user who represents an ideal user. A personal biography is often included in a description of a persona, as well as likes, dislikes, wants and needs. Sometimes even an illustrative photo of the persona is included. Using personas can keep the process of design on track and targeted toward the user.

Case: Anthropology The China Home-Learning PC from INTEL is an example

CVS The US pharmacy company CVS has drawn three key customer profiles aligned with its own acronymic name: Caroline, Vanessa and Sophie. Caroline is the young one (under 35) who does not purchase a lot of prescriptions, but shops at the front end of the stores for beauty and wellness products. Vanessa is older than Caroline: she is a parent who shops for the entire family. Sophie is the eldest of the three: her children have left home, and she is the one who purchases the most pharmaceuticals. These three personas allow CVS to target the introduction of new products and market directly to one of the three groups they represent. Childcare products are aimed at Vanessa, beauty products at Caroline and pharmaceuticals at Sophie.

CVS also learned that because their average female customer was five foot four tall, their shelving was too high, so they lowered their shelves one foot.

The INTEL engineering staff involved in the develop-

of how anthropological research can be applied. It all began

ment process did not follow the observation team to China,

in 2003, when a study showed that while many households

but worked in what was called “the China Room” at INTEL.

in China wanted a computer and actually could afford one,

China Room walls were covered with observations and

many had not purchased one. This represented a huge mar-

photos, and there was even a full scale model of a Chinese

ket opportunity for Intel.

apartment to remind developers of the physical limitations.

Intel’s researchers traveled to China to find out more

Their solution was a computer that, among other things,

about the needs surrounding the purchase of a household

parents could physically lock (both software and hardware

PC and came up with several interesting observations.

elements) with an actual key to prevent children from play-

Under the one-child policy, most of a Chinese family’s at-

ing computer games. Its screen could also be converted to

tention is directed at the child, making the child the central focus

support handwriting with a stylus when laid in a horizontal

of interest. The education of their child has a very high priority,

position. The PC received the China Design Excellence

but parents expressed the concern that the introduction of

Award in the fall of 2004.

a PC to the household could shift the child’s attention from education to computer games. Researchers also observed the physical features of Chinese homes, i.e. where electrical outlets

Source: http://www.reed-electronics.com/eb-mag/article/

were located and potential locations and settings for a PC.

CA6336055

INDEX:2007 | pg 09

Based on ethnographical field work, anthropology takes place in all types of social and cultural connections.

GIVING INCHES, GAINING YARDS

needs. The differentiating factor can be country-specific

A New Role for Designers

standards or segment-targeted characteristics.

Customer co-design definitely means changed conditions

Customers engaging in mass customization do not

for professional design. However, the impact of custom-

only buy a product; they also buy a history of the product,

ers is often overestimated. Mass customization requires

which is the history of themselves as co-designers. From the

design and designers.

private customer’s point of view, this is probably the most important and convincing aspect of mass customization.

Due to the large volumes of information exchanged

tion must step aside and allow customers to enter the design process.

Trends over the past few decades show that the market

design, whether it is the visual or the technical features of

future scenario, but recent developments in information

the product that the customer is helping to design. This

technology and the spread of Internet access have quickly

poses a new task for design: to create and design operations

taken mass customization from vision to reality. The new

and products that allow customers to join in.

generation of mass customization products is making

Mass customization does not only work to the benefit of customers: it also offers several advantages that can improve company effectiveness overall.

Instead of building to stock, mass customization suppli-

unity of classic product design. Design in mass customiza-

customization has only really developed in recent years, Internet connections.

Up until now, mass customization has mostly been a

role, one that is somewhat different from the totalizing

between customer and supplier, truly widespread mass in close connection with the extensive access to faster

Mass customization involves the principle of customer co-

In mass customization, design is assigned a new

This, however, does not imply that mass customization is an approach that makes designers and design dispensable. On the contrary, companies operating

is becoming increasingly unstable and failing to supply the

with mass customization need designers for several oper-

level of stability expected in classic mass production.

ations that branch out further than the design of a

Today’s consumers are no longer a homogeneous mass, if they ever were. Consumers are demanding and diverse.

single product.

Design thinking is needed in creating the product

Many sectors are experiencing a decrease in customer

architecture, to standardize processes and product ele-

loyalty. The market no longer belongs to the sellers, but to

ments, to create toolkits and to limit customization

the buyers.

options in terms of cost and time frame.

fundamental changes not only to the way we shop and sell, but also to business models.

More and more businesses are adopting mass custom-

MODULAR DESIGN

ization as a significant strategy. Mass customization is a

We find forerunners of mass customization in business, where there is a long-standing tradition of modu-

ers build to order, reducing inventory costs while reducing

relevant way to meet customer demand for individualized

lar design.

the risk of obsolescence.

products. The success of all-mass-customization compan-

An effective mass customization of products works as an

What differentiates mass customization from traditional (craft) customization is that mass custom-

ies like DELL has led the way for others, while clothing

ization targets the same market as mass industrialized products. Mass customization is planned ahead

end-to-end operation, a streamlining of operations that is

manufacturers like Levi’s, Adidas and Nike have gotten

and not merely a costly deviation from a standardized product, since mass customization employs mass

useful throughout the entire company.

closer to their customers through a combination of

production means and methods to make customized products.

Interacting with customers through mass customization also offers valuable insight into customers and can help

mass-customization production and retail.

While car manufacturers, led by Henry Ford, re-

Modular design is a core discipline in design history. We find forerunners of mass customization in businesses where modular design is a long-standing tradition, e.g. the automotive industry, but mass

companies be more customer-centric. For many manufac-

volutionized industry with the introduction of the

customization and modular design also have a long-running history in the design and customization of

turers who have previously worked business-to-business

assembly line to achieve mass production, this industry

kitchen units.

(B2B), mass customization can be a helpful way to skip the

has also been a forerunner in moving toward mass

retailer level and communicate directly with customers,

customization. The industry today offers – and has done

by other elements without difficulty. Modular design permits the combination of the mass-production

working B2C (business to customer).

so for quite a while – a wide range of individual packages

benefits of standardization with individual choice and can be used to accommodate customization.

Most of all, mass customization is a method of generating extra value by being flexible towards customers while also remaining within manufacturing capabilities.

Making it Real Mass customization is a long-awaited movement that may change the structure of the market forever.

Mass customization (sometimes referred to as customer-made or built-to-order, although neither covers the same

of options and various interiors and features.

The mass-customization design process draws on the

To use modular design is to design an assembly in smaller elements (modules) that can be replaced

Though evidently based on high technology, somehow the modular design of mass customization traces its history back to classic modular design. The Danish furniture design tradition provides a well

long tradition of modular design. Modular design is

known historic background for modular design. Børge Mogensen and Grethe Meyer’s Boligens Byggesk-

the central design strategy for the car manufacturing

abe (1954-59), Børge Mogensen’s more recent Øresund shelving system, and Montana by Peter Lassen

industry, the computer hardware industry and most

(1982), all work within the framework of modular design. In all three examples, customers are invited to

industries that manufacture technological products, but

customize the final design to suit their own needs for shelving and storage space.

the concept is perhaps most familiar in the design of kitchen units.

The level of mass customization ranges from highly

Modular design allows a single element in the design to be isolated and changed. It is necessary that this element can be completely isolated, because in some circumstances it may interfere with all of the other processes. T-shirt customization, for example, is typically variations in print, color or size, but

concept precisely) was already anticipated by futurist Alvin

individualized products aimed at specific customers to

Toffler in 1970, but the term “mass customization”

highly standardized products targeted towards larger

was first coined by business consultant Stanley Davis in his

populations of customers. This latter group does not

bulence throughout the entire operation. In customizing a kitchen unit, finish is a typical customization

1987 book Future Perfect.

necessarily experience the product as customized to their

parameter, but if you wanted to change the depth of a unit, you would have to change the entire kitchen

many more elements could be customized as well, e.g. fabric and fit.

However, not all options are relevant in mass customization: some variations would create tur-

– unless of course, different depths were offered as options.

INDEX:2007 | pg 11

Mass Customization: Introduction to a Method

successful mass customization.

To keep systems of mass customization flexible and

box? The leading Danish manufacturer of baby carriages,

The added value of customization decreases in the

Odder, has at its Web site a page resembling a mass-custom-

process of production. The earlier the customer is involved

manageable at the same time, it is important to operate

Elicitation

ization configurator where you can choose the color, type of

in the process (and subsequently the more customized a

within a limited framework, presenting customers with

The process customers go through in determining what they

frame etc. However, instead of ordering online directly from

product), the more value the product has for the customer

fixed solution space.

want and specifying their needs is termed the elicitation

Odder, customers can print out an image of their custom-

in question.

process. In mass customization, elicitation most often takes

ized baby carriage and hand it in at their local retailer, where

finite number of options. The set solution space is the key

place via a computer interface that helps to turn needs

they can pick up the product later. Collaborating with a

involved in the process are still limited by the company, and

differentiator from craft customization. Setting the op-

into specifications. This process is the locus of supplier/

network of retailers in this way can be useful for manufac-

the number of customers actually involved in the process is

tions in advance allows mass customization to use

consumer interaction, and it is vital that the customer per-

turer of odd-sized, more niche-oriented products.

often restricted as well.

the same process, whereas in craft customization, pro-

ceives the process as lean and easy.

Successful mass customization offer customers a

Mass Confusion

Virtual Mass Customization

Going Local

The concept of mass confusion refers to an overwhelming

Depending on the business, virtual mass customization (i.e.

cesses are different every time. Making the solution space stable also means to make processes stable.

Note that the ways in which customers can become

A configuration for a mass-customization product

Some experts view mass customization as an effective way

complexity in choices offered to customers by a provider

a product that seems customized, but is actually not) might

will normally employ a graphical interface to help cus-

to keep jobs in house and prevent outsourcing to low-cost

engaging in mass customization. If customers are over-

be just as relevant a solution. Virtual mass customization

tomers visualize the product. In mass customization, this

labor countries. To meet customer demands for efficiency

whelmed by options, do not have enough knowledge to

requires a great deal of variety in the product to give the

configuration is normally known as a toolkit. The toolkit

close to that of mass production, suppliers must consider

make choices, are not aware of their own needs, or lose track

impression of customization. Virtual mass customization is

presents the tools that the consumer can use to customize

the time it takes for a product to reach the customer. Al-

of their vision of the end product in the customization

encountered in the car retail industry, where a customer’s

the product.

though customers may be willing to wait somewhat longer

process, it may cause delays in deciding and thus perhaps

choice of color does not actually lead to the manufacture of

for a customized product than for an off-the-shelf product,

also prevent a purchase from being made.

a car in that specific color: a ready-made car in that color is

The mass-customized product should have the same warranties from the manufacturer as a standardized

they are not necessarily willing to accept long shipping times

product. The consumer’s customization options must

on top of the extra wait.

therefore be limited so that the product is not damaged

This may explain why many global companies are only

simply assigned to that particular customer.

Levels of Customization Different types of mass customization offer different degrees

by use, nor should it be possible for a consumer to choose

offering customized products to home markets and not to a

of individualization and personalization. While some com-

a set of features that would spoil the functionality of the

global audience.

panies offer only set options, others give their customers the option of becoming more involved in the design process.

product. In fact, this applies not only to the technical features but also to the visual ones. Ideally, customers should

Size Matters

not be able to put together an “ugly” product that could

As mass customization often means a shift from the role

influence other customers’ perception of the brand. This

of manufacturer to that of retailer, shipping is a point to

could be done by a mutual exclusion of features believed

consider. Mass-customized products tend to be relatively

to be in conflict with each other: e.g. if Color A is selected

small to fit within the framework of postal services. Larger

for Element 1, then Element 2 cannot be Color F, etc.

products often require an extensive and well-functioning

On the other hand, please note that more innovative ideas are generated in large solution spaces with few restrictions, but this is often beyond the limits of

local distribution network, as in the case of DELL computers and the automotive industry.

But what do you do if the product doesn’t fit in a shoe-

CUSTOMER’S WILLINGNESS TO PAY AND INCREMENT OF VALUE

TOOLKITS

The willingness to pay for customization remains a highly imprecise topic that needs further research.

ACCESSING IN-DEPTH CUSTOMER INFORMATION

However, studies on this subject show that customers are fairly willing to pay a considerable extra

Allowing users to specify their needs through a toolkit can provide valuable user insight. The high level

premium. In a study on watches conducted by Frank T. Piller and Nikolaus Franke, customers were on

of information delivered by consumers in the elicitation process gives companies access to a great deal of

average willing to pay a little more than twice the standard price for watches of the same type. Also,

what is called “sticky information,” i.e. information that is difficult and often costly to obtain from other

when customers in another part of the study were asked about their willingness to pay for the watches

sources.

designed by other customers, a great readiness to pay the same as for a standard watch was revealed. In

For suppliers who combine mass customization with classic retail, this can be an especially important

other words, customers were just as willing to buy a watch designed by an amateur as one designed by a

point. Instead of wasting money on traditional market research, stable and constantly updated access

professional.

to consumer desires and requests can provide valuable information on consumer trends – provided, of

Franke and Piller. “Value Creation by Toolkits for User Innovation and Design.” Journal of Product In-

course, that the consumers who wish to make use of the customization option are similar to the consum-

novation Management 21, 6 (2004): 401-415.

ers who buy off-the-shelf products.

INDEX:2007 | pg 13

Anything Goes?

INDEX:2007 | pg 15

Introduction to a Method

LEAD USERS AND LEAD CUSTOMERS

Tomorrow’s Competitors The lead user definition poses another issue to consider. As lead users expect to benefit significantly from innovation and have needs unmet by the market, they may constitute another problem: they may just turn out to be tomorrow’s competitors. If the need is strong enough, lead users could turn to manufacturers themselves or even begin manufacturing on their own. Remember that a lead user will often be closer to a network of other relevant lead users than manufacturers, and they will thus be in a better situation to see what kind of demand and economic potential exists.

Lead Customers and One-Percenters

The concept of lead users is probably the most hyped user-centered strategy, but many are confused by the concept.

Some companies have very successfully included actual customers in product development and design without having to perform the time-consuming operations normally involved in lead user processes. To separate this group from

In short, a lead user is a user who:

the actual lead users, we can call them “lead customers,” a

-currently has needs that a wider population will have at a later point in time, but has them months or

term coined by Patricia Seybold. If we enter the field of lead

even years before the rest of the population encounters them.

-expects to benefit significantly from satisfying those needs.

customers, we are also moving close to the fields of marketing and branding strategy.

Lead customers are sometimes called “One-Percenters.”

This group consists of people who rapidly become fans of a given product. They are not necessarily ahead of the needs

What if the entire research and development department

customers; it is a much wider concept. “Users” does not

of the general customer population, but the passionate

was dispensable, and customers could replace them instead?

mean users of a specific product, but users of or persons

feelings they invest in product could make their desires look

What if customers did this work for free, and this would

who have a particular interest in a given technological devel-

more extreme than those of the general population.

generate more success, with products and services more

opment. What makes them “lead” is the fact that they have

likely to succeed? This is often how the concept of lead users

this need before other users. They could be customers, but

is portrayed, but it is a pipe dream.

they could just as well be a competitor’s customers, or they

The lead user model does not hold the promise of easy

might not be anyone’s customers if the market has not yet

money, but it does have the potential to fulfill some of the

offered them anything good enough. In any case, lead users

above-mentioned conditions, since it seems that the lead

have hands-on experience that makes them aware of what

user strategy may actually offer a better chance of success

they need, and in some cases they might even have begun

and may offer innovative ideas from users as well. However,

satisfying this need with their own innovation.

it is not enough simply to add a “contact us” to a corporate Web site, although this seems to be a popular interpretation.

Ideas will not come rolling in that way. Lead user

Lead users also sometimes include other industries in adjacent markets with the same problem, which could mean they are able to supply a technological solution

strategy is actually a highly time-consuming method of

before you do. Lead users also include individual potential

innovation. The actual reward of lead user strategies is safer

customers who for some reason have decided to modify or

USER INNOVATION IN SPORTS

investments, not ideas for free.

develop the technology themselves. The lead user method

Sports equipment is an area in which lead user innovation plays a predominant role. In windsurfing,

The concept of lead users is often misinterpreted as

is based on the assumption that users are facing the prob-

boards previously did not have footstraps, and this made them hard to maneuver, and it was difficult for

term covering a population of innovative customers: this is

lems, not manufacturers, which means that it is users

users to stay on the board when making high jumps. This was true until 1978, when a community of wind-

quite far from the actual content of the concept. Lead users

rather than manufacturers coming up with solutions,

surfers experimented with using footstraps. The rest is history: windsurfing is today a worldwide sport.

might be innovative customers, but in many cases there are

or even prototyping.

(source: http://opensource.mit.edu/papers/evhippel-osuserinnovation.pdf).

no relevant lead users in the customer population.

The concept of lead users does not only include actual

Although lead users are not necessarily customers, they could and should be the customers of tomorrow.

In a study on outdoor-sports-related products, Christian Lüthje found that 37.3% of users developed ideas for new or improved products, 29.8% of which went beyond product improvement and extended to ideas for completely new products.

INTERVIEW WITH JØRGEN ROSTED

There has been a intense process of change in this area

Not surprisingly, there is a focus on the customer in user-

over the past ten years, and I still do not believe that we

centered design, but what is the role of the designer, then?

have seen the end of it.

Years ago, innovation happened within the business

It is no surprise that a designer’s primary competency is

enterprise itself. Once the prototype had been tested and

the ability to give form, to shape. This is also a fact that

put on the market, it seemed that fate and customer inter-

seems quite obvious when the design process leads to a

est would then determine its fate. Success depended on

tangible product, but it is more problematic and muddy

whether engineers and designers had the needs of the cus-

when it comes to understanding how a design process can

tomer in mind when they developed the product. Today,

lead to something intangible like a new service or a new

that is simply not enough. New products and services have

process.

to be developed in a close collaboration with consumers.

A designer’s understanding of form will definitely

The great challenge is to uncover and understand tacit

catalyze consequences and possibilities that are different

needs. This can be done in several ways, and this is clearly

than what other occupational groups might come up with.

Jørgen Rosted, Director at FORA and Chairman of INDEX:

where the dynamics and potential of UCD is.

This is due to the designer’s ability to visualize proposals,

Jørgen Rosted serves as Director of FORA, an independent research

What is the role of the business community in relation to the

of running an elderly care home that effectively improves

unit under the Danish Ministry for Economic and Business Affairs.

INDEX: theme “Design to Improve Life”?

quality of life or perhaps even a new and more effective

Rosted has been one of the most influential policy advisors in Denmark for the past two decades. He has served as Permanent Secretary in the Danish Ministry of Business Affairs and has held a number of leadership positions in the Danish Ministry of Finance as well.

Most recently, Rosted spearheaded FORA’s research into user-driven innovation and the mapping of regional and national clusters.

a capability that could even lead to a hitherto unseen way

way of preventing AIDS. Are such impalpable solutions “Design to Improve Life” separates good design from

design? According to INDEX: they are. And this is also

design-design. By “design-design” I mean design with an

why intangible solutions can be rewarded with INDEX:

aesthetic focus. It is a way of thinking design that is ap-

AWARD – that is, if it is clear how design competencies

preciated by many – including myself. Also, many design

have been applied in the process to accomplish the result.

awards focus on design-design.

The INDEX: “Design to Improve Life” theme clearly

User-centered Design & Innovation is quite an important

has another aim. We want to focus on the challenges in

theme in public government policy. Why is it not even men-

the contemporary civilization and thus on the necessity of

tioned in the EU’s Seventh Framework Program?

improving the quality of life, which applies to everything What is the importance of User-centered design (UCD) in terms of Danish competitive power?

from western lifestyle problems to environmental chal-

It is not mentioned because Denmark is the only country

are generally not using it properly today. Don’t forget, this

lenges – and especially to social adversity in rich and poor

in which the public authorities have realized the impor-

is exactly how we discussed technology 30 years ago – how

countries.

tance of UCD and innovation. Furthermore, Denmark is

were the SMEs ever supposed to be able to afford that?

All man-made risks should be looked upon as op-

simply the only country that has a public-sector program

Western industries are currently facing drastic restruc-

Nevertheless, it seems that the SMEs of today are just as

portunities, and I believe that there are great prospective

aimed at promoting these competencies and the use of

turing. In industrial society, we competed on price and

high-tech as the large corporations are.

markets in designing solutions to remedy or prevent huge

UCD and innovation. To be so far along is, of course, a

global risks. This is indeed something that is meaning-

competitive advantage, but more importantly, we must

quality. Today, in the global society of knowledge, we

It takes time, however, before a business enterprise

increasingly compete on experiences and the intangible

can see and feel that an investment in UCD is worth the

ful to people and businesses, and that is what justifies

hope that recognition of the necessity of user-centered

money, so to speak. If we use various activities to persuade

INDEX: and Design to Improve Life.

design and thinking will spread increasingly.

elements that now naturally, so to speak, follow the product.

In order to do well in this competition, we need both

Danish companies to look at the difference and the po-

competencies and the ability to organize creative interdis-

tential in UCD before their competitors do, it could be of

ciplinary collaborations. UCD is a key competency in this

great importance in Denmark’s ability to compete.

process and thus a competitive parameter that will be of increasing importance.

Do you see any trends in user-centered design?

The Danish business sector primarily consists of small and

Almost all designers will say that design has always been

medium-sized enterprises (SMEs). How can they use user-

user-centered, and this is completely correct in the sense

centered design?

that design, unlike art, is considered a commercial activity aimed at customers. Trends in UCD are not about cus-

SMEs can use UCD exactly the same way as much larger enterprises do. However, it is expensive and SMEs

tomer focus, then, but instead about how to uncover and understand the needs of customers.

INDEX:2007 | pg 17

User-centered Design & Innovation from a Danish Perspective

INDEX:2007 | pg 19

User-centered Design in Business Model Design:

EVERYBODY’S BUSINESS

with other ways of doing business or changes in organiza-

for the relatively smaller markets of the European states.

tional structure. CEOs worldwide are focusing an average

Moreover, Europe historically has a different business

30% of innovation efforts in developing business models.

structure than the U.S. and Japan, with a vast majority of

A study conducted by IBM Business Consulting Services

SMEs and fewer large companies. This poses a problem

in 2006 showed that business models are the place to

for the growth of European companies that has yet to be

invest your design and innovation efforts if you want

properly solved.

to obtain profit and ensure growth. The innovation of business models seems especially attractive to businesses

Threadless.com

whose innovative potential in the operational area has

Threadless.com is a business built entirely around its

already been utilized.

customers. This T-shirt company was launched in 2001

Popular innovations in this area are customer inte-

User-centered Design & Innovation exceeds the boundaries of product and service design. More and more businesses are reorienting themselves to become user-centered.

by Jacob DeHart and Jake Nickell as a subsidiary of their

gration, structural changes in the organization, and the

newly formed firm SkinnyCorp. Threadless.com prints

implementation of strategic partnerships with outsiders,

customer-designed motifs on T-shirts, and anyone can

In a 2006 survey by the American Management Associa-

like Procter & Gamble’s C+D (Connect and Develop)

suggest a design. Since the launch of Threadless.com,

tion and HRI, the most popular idea of what to do to

model. The IBM Global CEO Study showed that although

SkinnyCorp has launched additional commercial and

maintain and develop customer focus was to solve cus-

the classic types of innovation are important, it was actu-

non-commercial sites branching into other areas while

tomer complaints quickly. This is very much in line with

ally the companies that focused on the innovation of their

retaining the original Threadless feel: NakedAndAngry.

what earlier studies have shown about the cost of changes

business model that enjoyed the fastest growth. The study

com, an online necktie store where customers can suggest

in connection with the launch of a product: they actually

also examined whether the choice of innovation has any

patterns for limited editions of ties; 15MegsOfFame.

peak after the launch, not before. At least some of these

impact on a company’s financial performance by identify-

com, a site that allows unsigned recording artists to reach

changes and some of the preceding complaints could have

ing which companies outperformed and under-performed

a larger crowd and allows visitors to download music;

been avoided if companies were better at researching and

with respect to average revenue growth. The companies

OMG Clothing, another T-shirt company, whose every

testing beforehand, instead of patching up afterwards.

in the upper half with respect to financial performance

T-shirt is inspired by a slogan submitted by customers;

This obviously indicates that the innovation and design

emphasized the innovation of business models twice as

and Extra Tasty, a site dedicated to the mixing of drinks

process could be much better managed, but the notion of

much as the companies in the lower half. This sends a

and cocktails.

design management stretches far beyond that.

significant message: business model innovation matters.

Designers today are becoming more and more in-

The 2006 AMA survey showed that respondents

Threadless does not manufacture the T-shirts they print on: they are either made by American Apparel or

volved in areas other than their traditional workplace in

believed that they should be doing more to be customer-

Fruit of the Loom. A whole community has grown around

R&D and design departments. In recent years, an increas-

centered than they actually did. The survey also concluded

Threadless, with people are presenting and advertising for

ing number of designers have climbed up to management

that high-level executives are much more optimistic about

their T-shirt designs on their own Weblogs and discuss-

level in the corporate world. And they seem to be needed.

user involvement than those at a lower level. As the latter

ing design. It should be stressed that each customer does

Methods of doing and managing business are changing

are often closer to the users, this is a hint that high-level

not design his or her own T-shirt; rather, a certain T-shirt

as never before, calling for the creative skills of designers

executives may actually be too optimistic. Implementation

signifies belonging to a certain community. Having

and their ability to specify and satisfy needs. Designers

of user-centered strategies might start with a vision at the

your own design printed on a T-shirt is a service offered

can outline alternatives to the often offhand structure of

highest executive level, but it must also be followed by a

worldwide and something that can easily be done at home

many companies, which is often more the result of ad hoc

rethinking of all operations. Businesses face the dilemma

with special fabric print paper provided by print solution

decisions taken during a process of growth than planned

of knowing the path to take but not quite getting there.

suppliers. So if customers wanted unique T-shirts, they

development. The design of business models includes

In the twenty-first century, value is generated by cus-

would have no problem getting them elsewhere. Thread-

rethinking strategies, production flow, distribution, retail

tomer co-creation or co-design, or mash-ups (Web appli-

less is based on the principle of “collective customer

and marketing. Today, manufacturers are taking on the

cations that provide content from more than one source

commitment”: a T-shirt is not printed and manufactured

role of retailers and vice versa. The full scope of change

to create a new service, e.g. GoogleEarth). The genius of in-

until enough customers have expressed an interest in it. As

is exemplified by how, over the past decade, the formerly

tegrating customers into the design process is that companies

a result, Threadless is not producing T-shirts to stock and

technology- and hardware-centered IBM reinvented itself,

can not only rely on customers to provide relevant input,

thus has less inventory and less risk of obsolescence.

changing into a business consulting and service company,

but premium value is also added to the design as well.

most significantly expressed in its 2004 sale of its PC business to the Chinese company Lenovo.

Innovation is not just about inventing new products and services; today it is to a greater degree also connected

Looking beyond the Web, there is an often-noticed

Each year since its launch, Threadless.com has quadrupled its sales. More than 30,000 designs have been

tendency to favor what is local. National boundaries remain

submitted so far, and more than 70 designs are currently

a hindrance for companies in their efforts to center inno-

submitted every day. Each design that is accepted receives

vation efforts on the user, and this poses a special problem

an award in cash and vouchers for T-shirts.

INDEX:2007 | pg 21

User-centered Design in

STRATEGIC DESIGN

other words, it is the wise orchestration of all the assets a

understanding the needs of consumers. The company at-

company has at its disposal.

tempts to evaluate the minds and needs of consumers and

As a multidisciplinary approach, it naturally includes

gain an understanding of what the consumers consider to

a considerable amount of data from many different sources,

be value. This may be an easy method to enter a market

with the goal of supporting and strengthening corporate

that has not yet been defined by competitors, or even to

strategy which, when working well, creates a relationship

create a market, which means having no competition at all.

between design, strategy and corporate identity. Strategy controls the consistency and focuses on design’s long-

Extra Is the Extract of Teamwork

term capabilities.

Product design is not simply a creative expression, and

An offshoot of traditional design, strategic design is

In general, design is perceived in very narrow terms. However, there is a very clear distinction between two different levels of exercising design: a performance level and a strategic level.

it is certainly not art, nor is it simply a display of style

also a multi-discipline that combines a range of different

and aesthetics. Design must, in fact, take into account a

competencies like we see in anthropology, sociology, en-

number of problems related to industrial production and

gineering, etc. Viewed in that light, strategic design is not

especially the internal processes of the company. A suc-

The performance level is dominated by the practical

only about coming up with the idea; it is also about being

cessful product design is a synthesis of performance, style,

design discipline, e.g. industrial design, furniture design,

able to commercialize the idea into a product or service

ergonomics, usability and symbolism.

graphic design, interaction design, packaging design and

that the consumer needs.

many more. The strategic level is about planning, leading

Applying a designer’s tools and methods to the de-

Yet, achieving good design is not just a design task, but also a management task.

and using specific designer skills to gain increased value in

velopment of ideas and problem-solving, corporate lead-

corporations and organizations.

ers can create innovative and creative organizations and

more than just a logo, and products and services are a

use strategic design as a tool that can turn the traditional

fundamental element of corporate identity. Thus the chal-

methods of running a company upside down.

lenge today is to optimize brand identity and functional-

Too often, design is defined only as visual and aesthetic problem-solving or communication because of the

In the marketplace, an image is made up of much

ity, as well as the quality of the way the product suits its

predominance of graphic designers. In other fields and contexts, design might only refer to fashion design or

Bridging Differences

purpose and the skills and personality of its users, the

interior design. However, recognition of the similarities

Interaction between management and design is not a

visual communication that goes with it, and certainly the

between all design disciplines shows that there is a larger

new phenomenon, but designers are still widely consid-

environment in which it is sold.

definition of design at a higher level.

ered to be in the same category as artists. On the other

Products communicate their function through shapes,

hand, management is often seen as quite the opposite: the

and design increases the value of a product, providing it

comes of the design process, but they do not begin to

arch-enemy of creative thinking. The skills of a designer

with a specific identity so it can be differentiated from the

describe the boundaries of the playing field of design.

are important, but so are the skills of design management

competition and at the same time increasing its symbolic

Just think of the Internet: several organizations, logistics

applied within the company.

performance.

Industrial products and graphics are certainly out-

systems and computer software – all engineered AND

In order to embrace the idea of interdisciplinarity, to

In this connection, if products or services are to stand

designed. Overall, organizations need to take design

create a bridge between designers, managers and research-

out, they must ooze of added value, some “extra-ness”

thinking seriously.

ers, it is necessary for them all to realize that strategy,

– and this cannot happen unless the entire organization

management and creativity are not adversaries, but allies.

has been analyzed and organized. Every single bit must be

Encompassing Smaller Plans for One Objective

Both designers and design managers are necessary players

tied together so that consumers will, at the end of the day,

Let us be clear: design should not be considered just

in any modern enterprise: the absence of especially the

have the feeling that they are buying more than just the

a shaping discipline. In fact, design can just as well be

latter discipline could seriously damage otherwise good

physical product.

viewed as an advanced planning tool that builds on the

results. Creativity and strategy are not contradictions in

designer’s ability to give form and visualize, as well as

terms – in fact, they are quite the opposite. Design needs a

tions before designing, about strategically arranging and

prototyping and user insight.

strategic framework.

preparing – all highly beneficial for both customers and

Strategic design means simultaneously controlling

The working method of designers is not a linear pro-

Basically, strategic design is about asking ques-

a company’s bottom line. Whereas the traditional design

product design (product, families of products, shape,

cess. Rather, it is a process in which designers keep asking

approach is, roughly put, concerned with the results of the

function, materials, colors, ergonomics, user interface,

questions about what it is they are working with. As a

design, strategic design focuses on identifying problems

etc.), graphic design (corporate identity, company publi-

consequence, the aim is not a foregone conclusion, and

and creating solutions before the actual manifestation of

cations, events, packaging, promotions and advertising),

this creates dynamics and may lead to solutions that are

the product or service, a shift in focus that will very often

Web design (Internet, intranet and multimedia), environ-

very different from what was first anticipated.

reveal new opportunities.

ment design (factories, offices, showrooms and retail stores), management processes, and business models – in

This “method” or way of thinking is almost in direct continuance of user-centered design, which is based on

MADE IN KOREA

SERVICE DESIGN

In the past five years, Samsung has won more awards from the

Service design can be both tangible and intangible, and may involve

Industrial Design Society of America (IDSA) than Apple, thus

artifacts just as much as communication. It can also be both com-

surpassing its competitor in the quest for design excellence.

mercial and non-commercial. Whatever form it takes, however, it must be strict, consistent and easy to use.

Strategic Design Case About a decade ago, Samsung (which means “three stars”)

long course in mechanical engineering in order to prepare

products were gathering dust on store shelves: American

them to defend their ideas. Partnerships with up-and-coming

consumers considered them to be toy-like knockoffs. To

engineers and managers from other disciplines were also

change this, CEO Kun-Hee Lee set out an ultimate aim: to

formed so they could learn to work together. Such partner-

push Samsung into the highest ranks of first-class brands.

ships are still the principle behind Samsung’s Creating New

According to Fast Company, it is the brand that has grown

Business Group, an elite team of designers, technologists and

fastest over the past five years: Samsung is currently the

experts in marketing and manufacturing who study consum-

The service sector is growing, and service design has

world’s most profitable tech company, accounting for 20.7%

ers and create future scenarios.

There is no doubt that a positive experience as a

become a field concerned with the development of ser-

customer has very great value in connection with brand and

Through its Design Power Program, Samsung’s in-house

vices to meet specific needs. These services may make use

perception. Applying design techniques to a service will

Lee soon realized that Samsung would have to create

school for designers, Samsung sends its most promising stu-

of different communications media (Internet, telephone,

produce greater customer satisfaction. In short, customers

stylish, premium digital products that sparked custom-

dents to study at the world’s top universities and institutions

in-person, etc.); they may or may not be automated, and

experience an efficient and thoroughly thought-through

ers’ emotions with elegant, human-centered design. Lee

and have also opened its own design studios in London, Los

they may or may not use products as part of the service

service that sparks customer loyalty which, at the end of the

decided to use design as a competitive weapon and thus

Angeles, Milan, San Francisco, Shanghai and Tokyo.

experience.

day, means tougher competition. This will become the deter-

of Korea’s total exports.

transformed Samsung from imitator to world-class in-

However, the company was not satisfied until it had

Service design in general is the design of systems and

mining difference between products.

formed the core of the company: its design ethos, a clear set

processes that aim to deliver a service to customers. The

of principles upon which design could be based. The search

service is more than often tied to a physical product or

clear shift towards convenience. However, customers are con-

that Samsung lacked a design identity. In other words, its

finally came to an end when Samsung discovered the Tae Kuk

offer, but may also be a strictly immaterial offer such as

stantly demanding exciting experiences. To fulfill this wish, a

top managers discounted the value of design.

symbol on the South Korean flag, a yin-yang symbol that

legal counseling. Service can be delivered through virtual

new creative element will have to enter the field of designing

Some of the plans included a collaborative work envi-

represents both unity and duality. This inspired Samsung’s

or physical interfaces or by people in the flesh.

user experiences, and this is where service design can play a role.

ronment in which designers were required to take a year-

touchstone, which is now “Balance of Reason and Feeling.”

novator.

Along with Fukuda, his design adviser, Lee concluded

There is no doubt that the focus on functionality has taken a

INDEX:2007 | pg 23

User-centered Design in

A FRESH START IN THE KITCHEN...

Umpqua Bank went from $140 million in assets in the mid-1980s to

Find it boring to cook? No inspiration? Fresh Start helps friends

$5.36 billion in 2005. What happened?

transition into a healthy lifestyle through shared cooking, a concept that has two friends sign up for the Fresh Start service and make a commitment to cook with each other on a regular basis.

Service Design Case Service Design Case

Umpqua Bank was founded in 1953 in Canyonville, Oregon,

plain its new concept. The employees are now trained at the

as a small community bank. It existed as such until 1994,

Ritz-Carlton Hotel to ensure that customers feel welcome.

when Ray Davis became CEO of the bank and things started

The initial makeover cost $250,000, but it seems to have

The Web site myfreshstart.org is used to initiate the

to change.

been money well spent: Umpqua Bank is today the largest

service, facilitating the negotiation between friends as

friend talks the other through their half of the recipe as the

independent community bank in the Pacific Northwest and

they agree on a cooking and on a cooking schedule, and

device provides a two-way audio channel between the two

Northern California, with 127 stores.

serving as a feedback tool throughout the course of the

friends’ kitchens. The wireless device discreetly adapts to

service.

any kitchen environment. When they are done cooking, the

In 1998, Umpqua Bank made a move for the big citymarket of Portland. Umpqua Bank felt a change of strategy was necessary to make the leap from small community bank to the greater financial scene.

Following its success, Umpqua Bank hired David Hawkins, formerly with Ziba design, as its brand manager. Today the

On scheduled days, the Fresh Start service delivers a

Using a communication device in their kitchens, each

friends remove the sticker to reveal the complete recipe.

MyFreshStart.org documents the Fresh Start service de-

bank’s concept stores offer free Internet access on wireless

box that contains a recipe and the prepared, pre-por-

laptop computers and free coffee. Umpqua Bank now even

tioned ingredients to prepare that recipe. The box is deliv-

sign project and was completed in the spring of 2005 by Dave

has its own book club called the Umpqua Read Club. In the

ered to each friend’s home prior to the scheduled cooking

Chiu, Alexandra Deschamps-Sonsino and Haiyan Zhang.

stores, customers can listen to and buy CDs by local bands.

time. The recipe initially has one half covered by a sticker.

The project was specifically created for Emergence 2006,

to be the case, customers did not really need faster bank-

Umpqua Bank still has the feel of a community bank, stick-

Each friend receives a different half of the recipe, enabling

an international design forum hosted by the School of Design

ing. Instead, Ziba coined the term “slow banking” to ex-

ing to the local area, but on a much larger scale.

them to take turns leading the cooking process.

at Carnegie Mellon University on September 8-10, 2006.

Instead of contacting a management consultant firm, as would have been the usual procedure, Umpqua Bank contacted local Portland-based design firm Ziba.

Ziba found that, contrary to what was often thought

INDEX:2007 | pg 25

UMPQUA BANK

UN MILLENNIUM DEVELOPMENT GOALS & GLOBAL COMPACT PRINCIPLES

2005 INDEX: AWARD WINNERS & USERCENTERED DESIGN

Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equality and empower women

Lifestraw™

great care to design for the user, making the interface

The winner in the Body category, Lifestraw™, addressed

beautiful and simple, as well as easily understandable. The

one of the world’s major issues: the lack of clean drinking

iTunes Music Store took care of another important aspect:

water. More than a billion people worldwide are without

the intellectual property problems connected with music

access to clean water. With LifeStraw, manufacturer

in digital format. The iTunes music store offers an attrac-

Vestergaard Frandsen addressed this problem by design-

tive alternative to illegal file sharing.

ing an affordable water purifier in the very straight-

Reduce child mortality

forward and graspable shape of a straw using the best

Siyathemba – the field of hope

Improve maternal health

available technology. The LifeStraw is very lightweight

In South Africa, HIV/AIDS is the leading cause of death,

Combat HIV/AIDS, Malaria and other diseases

and portable, which takes into consideration the very

and especially afflicted is the region of KwaZulu, where it

difficult conditions under which it is used.

is the cause of 42 percent of all deaths.

Ensure environmental sustainability

More than 60,000 LifeStraws were distributed after the most recent earthquake in Pakistan.

Develop a global partnership for development

Siyathemba (which means “we hope” in isiZula) is a project with the double target of developing the local community and providing it with treatment and

• Principle 1: Businesses should support and respect the pro-

Observatorio Iberoamericano para la Artesanía

information.

tection of internationally proclaimed human rights; and

In 2001 the Foundation Fundación Española para la In-

In 2004, the charitable organization Architecture

• Principle 2: Make sure that they are not complicit in

novación de la Artesanía (the Ministry for Industry, Tour-

for Humanity launched a global competition to design a

ism and Commerce in Spain) designed simply strategy, a

soccer field that could also function as a meeting point

network and a Web site focused on improving life for 40

for the area’s youth, to create a space for people to be edu-

million craftsmen in Latin America.

cated and treated without undergoing the stigmatization

human rights abuses.

• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

The main activities improve networking among

• Principle 4: The elimination of all forms of forced and compulsory labor;

normally associated with it in the region.

craftsmen, teaching them new trends and enabling them also to communicate with customers and new markets.

Softwall

• Principle 5: The effective abolition of child labor; and

The network not only optimizes their earnings potential,

The 2005 INDEX: Award winner in the Home category

• Principle 6: The elimination of discrimination in respect

but also sparks ideas and innovation in connection with

was the partition wall Softwall, which counters a problem

sharing design methods, information transfer, technologi-

faced by many people worldwide. Softwall provides a rem-

cal development, design, product development, databases,

edy to the fact that many of us are living in housing built

and so on.

for another time and different family patterns and thus

of employment and occupation.

• Principle 7: Businesses should support a precautionary approach to environmental challenges; • Principle 8: Undertake initiatives to promote greater environmental responsibility; and

Observatorio has, in this way, made sure that this craftsmanship does not die.

• Principle 9: Encourage the development and diffusion of environmentally friendly technologies • Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.

Award was centered around the theme “Design to Improve Life” and thus had a focus on human needs.

The solution is a flexible, storeable wall based on the classic technology of folding paper and thus presenting

Apple iTunes & iPod

a new function in a simple and familiar form. It absorbs

No introduction is necessary for the winner in the Play

noise and light, making it an alternative to real walls.

category, the world-renowned iPod by Apple together

Today Softwall is a part of the permanent collection at

with its online companion iTunes. The popularity of the

MOMA in New York.

iPod has proved to be a welcome addition to people’s Each in its own way, every one of the five 2005 winners of INDEX:

does not support a contemporary lifestyle.

lives. In the design of the iPod, Apple’s design team took

INDEX:2007 | pg 27

INDEX: 2007 Focus

INDEX:2007 | pg 29

INTERVIEW WITH LISE VEJSE KLINT

User-centered Design & Innovation in INDEX: 2007 Perspective

The program for INDEX: 2007 is in the making. Director

context, it is only possible to improve life for a short pe-

to the problems should be found in this direction,’ and

of the program for INDEX: 2007 is architect and designer

riod of time. That may be well enough, but the ambition

they pointed to design and creative thinking as one of the

Lise Vejse Klint. The ambition for INDEX: Summit in

needs to be to provide viable solutions. That is why it is

directions. In many ways I see next year’s Summit as a

2007 is to show how the many very different User-cen-

crucial to look into the economic aspect.

way of taking up the challenge from Davos. Hopefully, in

tered Design & Innovation methods can play not only a

“The cultural aspect looks at what is desirable and

taking that challenge up through design, we have a part

part, but as Lise states it “a crucial part” in solving some

what fits in the context, whereas the economic aspect

of the answer, and we can qualify that through the design

of the problems ahead of us on a global level. These

looks at what is pragmatic and constructive, thus keeping

method we call User-centered Design & Innovation, in

problems also fit into the main focus of INDEX: which is

it rewarding for all partners and stakeholders. These two

which we explore the potential. I believe that design is a

Design to Improve life.

main contexts lead us to design, which looks at what is

part of the answer – no doubt about it – and the rest of

possible and how we value and evaluate those experiences

the answer from INDEX: Summit are ways to facilitate an

Design as a mediator between economic and cul-

and encounters we have in the cultural and economic

implementation.”

tural contexts

contexts. This tells us in which directions we should look

“What is important in our approach in 2007 is that in the

to find possible scenarios and solutions and how we can

INDEX: SUMMIT 2007 August 25–28

very moment you begin to talk of user-centered design,

facilitate them. It is important to us exactly because design

International leading experts in design and user-

you have to relate to the fact that you are dealing with real

is not part of the traditional ‘technocratic’ projection of

centered innovation are invited to Denmark to dis-

people – not necessarily individuals but also groups of

known solutions. Traditional ‘technocratic’ thinking only

cuss, develop, lecture and share knowledge.

people, and all those people have a context that you have

looks at solutions from one angle; design asks why we do

to consider, no matter how you approach the problem.

not look in other places. It lets us consider whether there

INDEX: SUMMER CAMP 2007, August 10–31

One of the two main contexts from the view of INDEX:

might be some more fruitful answers elsewhere. And this

Students from around the world are invited to take

is the cultural context. Everyone is embedded in a specific

is the situation where design not only can play a role, but

part in an international summer camp with a focus

cultural reality which has to be considered if you want to

an important role.”

on how design and user-centered innovation can improve life. The students will be interacting with

help or put solutions forward,” says Lise, who continues: “However, people are also embedded in an economic

Taking the challenge of design

the experts from INDEX: Summit.

context, and all studies show that, no matter whether you

Inspiration for the approach to the events in INDEX:

live in what we used to call the first world or the third

program for 2007 came from several sources. The annual

INDEX: NETWORK SERIES 2007, August

world, if the solutions are not put into a viable economic

meeting of the World Economic Forum in Davos, which

Designers, business and educational/research insti-

put design and creative thinking high up on the agenda,

tutions are invited to debate and share knowledge

was an especially vital source.

with INDEX: Summit participants.

Lise Vejse Klint is a former president of Danish Designers. Last year she was elected Secretary General of ICOGRADA, the International Council of Graphic Design Associations. Lise is a member of the Executive Committee of the International Design Alliance (IDA) as well. She has a master’s degree in architecture from the Royal Academy of Fine Arts School of Architecture and many years of experience in teaching at institutions such as The Royal School of Library and Information Science, the University of Copenhagen and the Royal Academy of Fine Arts School of Architecture. In addition, she is a board member for the Danish Arts Foundation, and last year she was appointed by the Minister of Economic and Business Affairs to join a special committee on strengthening Danish design.

“We are, of course, not the only ones thinking this way; there was the same underlying assumption at the

The program for INDEX: in 2007 boasts three major

World Economic Forum in Davos earlier this year. So we

events: the Summit, the Summer Camp and the Network

are not reinventing the wheel, but building our knowledge

Series, all of which look at the same issues, but from dif-

on prior experiences.

ferent perspectives.

“What they did at Davos in January was to look at a series of problems and say, ‘We believe that the answers

“We approach it from three different angles. INDEX: Summer Camp will look at the possible solutions in a

INDEX:2007 | pg 05

very practical way, i.e. how to implement them, whereas

two affect us all on an everyday basis, no matter what our

century have provided solutions to problems. In the twen-

organizations and operations, in a much more effective

INDEX: Summit will take a much more philosophical

given context is.”e Role of Design

ty-first century, their aim is not to solve the problems, but

way than through mere research.”

approach, in turn seeking to answer the question ‘How

To accommodate the notion of cultural diversity in the

to define the problems instead. This will provide designers

to facilitate?’ Lastly, INDEX: Network Series is INDEX:

process, INDEX: takes inspiration from the UN’s educa-

with a quite different objective and role in relation to the

a number of current economic thinkers point to the fact

Summer Camp and Summit’s interface with Danish trade

tional, scientific and cultural organization.

problems. To me, it is vital that we are elaborating on and

that we in Europe have traditionally been more interested

contemplating more about such aspects at INDEX: Sum-

in research and less in development, in which design is

mit in 2007.”

a important factor. Research can in general terms only

and industry, will take a more debating approach, address

“If you are working with the MDGs, it is apparent

relevance and performing a reality check from their point

that you have an ambition to relate on a very conscious

of view.”

level to the cultural dimension in the solutions. It would

Lise continues: “We are talking a lot about R&D, and

be conducted by the major players, whereas the poten-

be strange not to look at what UNESCO has to say about

The Advantage of Design

tial of the SMEs to a greater degree is development. The

Gender and Environment

that. They have a lot of considerations on cultural diver-

INDEX: Series is an event that invites designers, business-

potential of the SMEs in this respect is huge and to a great

The events will address two major problems facing the

sity and its importance in solving problems.”

es and educational and research institutions to be part of

extent unexplored. It is important to compare it to the

the project. Lise’s experience has given her a clear vision

repeated surveys conducted by Oxford Research in con-

of what industry can learn from design.

nection with the committee’s work whose results indicate

world today. So large-scale are these problems that 189 heads of state decided to include them in the eight UN Millennium Development Goals: “Once again, it is not our ambition to reinvent the

The Role of Design “What is interesting in thinking design into that

“I think that Danish trade and industry – and perhaps

that businesses are happy with the work of designers.

context is our ability to visualize. I was recently at a con-

especially the SMEs (small and medium-sized enterprises)

More than 90 percent answered that they were ‘satisfied’

wheel, so we take our starting point in UN’s eight Mil-

ference in South Africa where I heard Dr. Darlie Koshi

that make up most of the sector by far – will benefit

or ‘very satisfied’ with the services provided by designers.

lennium Development Goals (MDGs) and the 10 Global

from India talk about how the creative economy brings a

greatly from learning how design can play a decisive role

Of course, this is due to the fact that we in Denmark have

Compact Principles for the simple reason that we do not

demand for further visualization. Visualization represents

in the development of their business. This aspect was also

very highly skilled designers, but it is also because once

have to discuss the relevance of a given problem. After all,

a highly advanced way of evaluating and suggesting pos-

highlighted by the Committee on strengthening Dan-

a company has begun the process of buying design, they

189 heads of state agreed that if we do not try to find solu-

sible future scenarios. He sees the ability of the designer

ish design: we all agreed that some kind of education of

have a sort of ‘Aha!’ experience that gives them new in-

tions to these eight problems before 2015, the world is in

to visualize and conceptualize problems and solutions, to

the buyers of design was necessary, simply to help them

sights. They think, ‘Can it also be used for that?’ I think it

serious trouble. It is beyond our reach to address all eight,

bring them to a point where everybody can understand

realize to what degree designers can contribute not only

is important to push more of the SMEs in that direction,

so we have decided to address Goals 3 and 7 because these

them. He also reflected on how designers in the twentieth

to innovation, but also to rethinking business strategies,

and that is also our ambition.”

Global Compact

The Third and Seventh UN Millennium Development Goals

In an address to the World Economic Forum on January 31, 1999, United Nations Secretary-General Kofi Annan challenged business

The eight Millennium Development Goals have been agreed upon by all the world’s countries and all

leaders to join an international initiative – the Global Compact – that would bring companies together with UN agencies, labor

the world’s leading development institutions.

organizations and civil society to support universal environmental and social principles. The idea was launched at UN Headquarters in New York on July 26, 2000.

#3

Through the power of collective action, the Global Compact seeks to promote responsible corporate citizenship so that business

• Eliminate gender disparity in primary and secondary education, preferably by 2005, and at

all levels by 2015

can be part of the solution to the challenges of globalisation. In this way, the private sector – in partnership with other social actors – can help realize the Secretary-General’s vision: a more sustainable and inclusive global economy.

The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment, and anti-corruption.

#7

• Integrate the principles of sustainable development into country policies and programs; re verse loss of environmental resources • Reduce by half the proportion of people without sustainable access to safe drinking water • Achieve significant improvement in the lives of at least 100 million slum dwellers by 2020

publisher: index:

index:

text: sandra dali, niels jarler

strandboulevarden 47 a

layout: hannah cho, virginia sin

2100 copenhagen ø

print: damgaard-jensen a/s

denmark

photos: miklos szabo

www.indexaward.dk

thanks to: the copenhagen institute

info@indexaward.dk

of interaction design issued: october 2006

INDEX: EVENTS

August 24th

August 17thSeptember 24th

August 25thAugust 28th

August 10thAugust 31st

August 2007