Strategic Solution for RSM

Final Report Group 2 - IFI Design Consultancy Shen Liu 4012615 Mirthe monninkhof 4250303 Ad van der Veer 1355902 Pieter Vegt 4052900 Youge Xiao 4257219

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

1. Introduction In the story of Troy, the Greeks built the Trojan horse which contained Greek soldiers inside to overcome the city of Troy. Our design consultancy is called IFI (Innovation From Inside). We also believe that great changes come from inside. We can tackle a problem by studying it and its surroundings, looking at the strong and weak points of the problem, and innovation from deep empathy. Any problem or case is hard to solve, it is up to us not to tear down the impenetrable fortress, but to come up with a smart and innovative solution. Instead of diving in head first, we listen to our clients, believing that much of the knowledge is already there. We can then help to visualize your future vision and apply our knowledge to create a perfect fit in the right context at the right time. With our design skills, we make your implicit vision explicit (Valencia, Person & Snelders, 2011).

INNOVATION FROM INSIDE Figure 1.1 IFI Logo and slogan

Figure 1.2 Team members introduction

Shen Liu Netherlands

Pieter Vegt Netherlands

Ad van der Veer Netherlands

Mirthe Monninkhof Youge Xiao Netherlands China

Special Powers: Retail Design Experience, High Motivation, Structured Weak Spots: Stubborn

Special Powers: Radical, Part-time professional Designer Weak Spots: Facebook-less

Special Powers: Philosophical, Visionary, Programmer Weak Spots: Can’t rush project work

Special Powers: Highly reflective and Critical, Culturally wide oriented Weak Spots: Over perfectionistic

IFI Date

1 05-04-2013

Special Powers: UX/ UI Design, Asian Weak points: Not pay attention to details

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

2. Positioning Statement:

2.1 Our Vision To solve the wicked problems of tomorrows world, companies will need innovation fueled by people who are open-minded and ready for the fast changing borderless world. Therefore, the next generation needs to be able to adapt quickly to the exponential growth in innovation.

2.2 Our Mission Sustainable Innovation is the only way for companies to maintain a competitive position in this fast changing world. It is our mission to gain good understanding of our client in order to innovate from the inside and combine their strengths with our design skills. This synergic approach will make our clients more sensitive towards the future, attaining the adaptability while maintaining stability and reaching economic business objectives.

Figure 2.1 Create a synergy from inside

2.3 How We Work Our approach is clearly linked to our mission of gaining a good understanding of our clients in order to innovate from the inside out. Or as (Beverland & Farrely, 2011) formulates it, ‘we step out of our own worldview and view the situation from your viewpoint, so that we can come to a fit solution in the end.’ We do not work alone on the solution, but we want to include RSM, and use their strengths, to co-create (Calabretta, Gemser, Wijnberg & Hekkert, 2013).

Having reached this empathic view, we transpose it into the future for designing out-of-the-box solutions with a clear business fit. Our unique visual communication tools allow us to make this future vision tangible and understandable.

Our background as a multi-disciplinary team of Strategic Designers, Software Engineers and User Interface Guru allow us to combine many expert views into a concrete and applicable solution.

IFI Date

2 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

3. Problem Definition

We want the Rotterdam School of Management to position itself as a management school with a unique approach towards innovation.

The current education program of RSM is not sufficient in the area of innovation in order to maintain their leading position and attract students from emerging markets (Rotterdam School of Management, Erasmus University, 2013). Managing innovation provides a considerable challenge for the Rotterdam School of Management; In our perspective, innovation is about creating a culture rather than using it as a goal. This culture is all about acting on changing conditions, not just reacting. It is about creating new theories on the go, not just relying on today’s theories, which might not be valid tomorrow.

IFI Date

3 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

The current approach of RSM does not fit this culture yet. Our goal is to overcome this challenge by implementing a new innovation culture as an additional value to RSM’s current program. There are several factors determining the implementation:

How to manage innovation as an intangible resource.

How to encourage ‘taking the road less traveled’.

How to convince others to take this road, without proof of success.

How to create an innovation mindset while maintaining the business fit.

~ ~

Figure 3.1 Problems RSM encountered

IFI Date

4 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

4. Proposed Solution

4.1 The Concept

RSM profiles itself as one of Europe’s most international and innovative business schools and plans to strengthen this reputation by extending their offering in the area of innovation. One of their major selling points is: ‘Develop business leaders with international careers who carry their innovative mind set into a sustainable future’ Their approach is to teach this leadership through a combination of intellectual and practical challenge.

We believe that to support RSM in developing successful leaders for the future, their students need to be taught how to deal with wicked problems of tomorrow’s world. The approach of RSM to combine intellectual and practical challenges is very valuable in this respect.

However, contextual inquiry with multiple RSM students and alumni has pointed out that there is opportunity to improve the practical aspects of the existing educational programs.

IFI Date

5 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

The opportunity that we propose to RSM will enhance their educational system in an innovative way. Our advice is to create an educational service that will support students in learning how to adjust quickly to the fast changing world.

In this perspective of service design, this educational solution will almost entirely consists of intangible resources (e.g. knowledge). Only at the interface between service provider (RSM) and its clients (students), an materialistic interface resides: the staff, coaches, teachers etc. In order for the program to succeed it is paramount this primary interpersonal interface is designed and constructed correctly. Although this point of human interaction cannot be removed from subjectivity and spontaneity it should not preclude this interaction from being shaped, for example by defining body language, word use or environmental settings (Secomandi, 2011).

It should generate a culture of motivation and innovation inside the RSM. We will help RSM to create this culture by adding a practical challenge to the existing educational program, which will reinforce the mix of intellectual and practical challenges.

Creating a new culture and generating motivation are both highly grounded in psychology and perception of every individual student. I is therefore important to maintain an very User-Oriented Design approach during the entire development phase (Veryzer, 2005).

An practical example of the implementation is given below.

Example Teams are set op of an X number of students (+-4). These students represent a company where RSM can choose an appropriate type of company. You could think of food chain companies, supermarkets, sportswear, the oil industry, ICT and so on. Students go through a fictional route of running this company, where the aim is to strive for success through innovation management. In order to be successful in this respect, they have to learn how to quickly adjust and get the most of unexpected events. Again, these events can be formulated in cooperation with RSM. Examples of unexpected events could be:

IFI Date

6 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

Start a Company

1. Switch of employees Company A looses 2 employees to company B, but also gains two employees of company B. The challenge of this unexpected event is how to deal with leaking or lost knowledge, and how to get the most from new knowledge.

2. R&D invention R&D comes up with a new invention in e.g. manufacturing technology. Here the challenge that students face is how to implement this new manufacturing technology efficiently in the current process.

3. Market change.

The students are challenged to deal with market change, like a change in customers buying habits. They could perform a company analysis to identify strengths and weaknesses. Moreover, this analysis can be used to reorganize part of the company so that a new service / product can be offered that fits to the new market.

4. Joint ventures Market opportunity, external parties proposing joint ventures. Students have to identify which proposals are of interest for the company. Moreover, they will need to identify what changes and new knowledge is needed to realize this joint venture.

Failure:(

IFI Date

7 05-04-2013

Success:)

Figure 4.1 Solution Example

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

4.2 Use RSM Resources Even though our solution for innovation is based on a new approach towards education, we want to make sure that it fits the context of RSM. Therefore, we investigated RSM’s current resources and looked for a way in which they might be used for our solution. Both internal as external resources are considered.

Internal Resources 1. Internal knowledge: As a leading business School RSM has a lot of prominent teachers.

2. IT-Facilitations: Next to Blackboard, RSM uses Careernomics Solutions to communicate with upcoming students. This could be used for courses as well.

3. In 2012 RSM opened a location in Amsterdam: When dealing with change this could be of use if students need to be placed in a new environment.

4. Digital distribution of courseware can help in making the course easy adaptable to changes.

External Resources 1. Corporate partners: The corporate partners of RSM have a long history of changes that were caused by, or led to innovation. (Merging of ABN Amro, technological developments for Akzo, competition from upcoming markets for Corus). Examples from these corporations can learn students how to cope with changing situations.

2. Market developments: Real-live changes could be a source for innovating in the course. However, the course need to be easy adaptable.

3. CEMS and PIM partners: Through the Community of European Management Schools (CEMS) and the Partnership in International Management (PIM), RSM has a large network of 100-plus partners internationally. This network can be used to take the concept to a broader level, where worldwide changes can be applied.

IFI Date

8 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

4.3 Competitive values for RSM 4.3.1 RSM Brand Value RSM profiles itself as one of Europe’s most international and innovative business schools and plans to strengthen this reputation by extending their offering in the area of innovation.

They brand themselves as a top level education that uses a combination of intellectual and practical challenges to develops business leaders who carry their innovative mind set into a sustainable future.

Nevertheless, the brand value of their unique innovative approach in education -combining intellectual and practical challenges- is currently not perceived as such. However, our proposed solution to implement a new culture of innovation as an educational activity will allow to align the brand image of RSM to its brand value, and therefore strengthen the brand. We will use our designerly skills to translate RSM’s core brand value into a tangible solution for unique innovative education. (Karjalainen & Snelders, 2010)

IFI Date

9 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

4.3.2 RSM economic value We as designers can increase the corporate financial performance of RSM (Hertenstein, Platt, Veryzer, 2005). The proposed concept provides several possibilities for increasing the competitive position of RSM (Gemser, Candi & van den Ende, 2011): By making the program part of an international competition the results are shared and compared with other schools.

An underlying research project analyses the program result and behaviour in order to increase the schools knowledge and understanding of innovation.

Automated systems could provide a way to minimize operational costs while also increasing the student’s motivation.

By designing the solution in a modular way aspects can be reused in other programs at the RSM.

IFI Date

10 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

The added values can be described in terms of Reputation, Efficiency, Modularity and Valorisation.

Reputation Innovation complements the current brand values and provides RSM, synergized with the practical approach, with a new long-term weapon for competing in the international MBA school rankings. By participating and excelling in the international competition a traditional marketing channel is created for reaching potential students all over the world. This competition can be financially supported by its participation fees.

Efficiency The day to day operations will be constructed for efficiency. Through design it will allow for a large group of students to participate in an engaging manner and is focused on creating intrinsic motivation (Bohemia, 2002). But at the same time, by using sophisticated and user-friendly automated systems, the use of valuable human resources (staff) is minimized. The underlying academic research project allows for constant optimization of the program making sure it evolves and is kept up-to-date in an efficient and cost effective way.

Modularity An important aspect of the solution is the generation of realistic random events for the students to react on during the learning experience. By designing the program in a modular fashion this part be will reusable in other educational programs throughout the university exploiting its unique strengths, such as cheating and plagiarism prevention.

Valorisation Valorisation of the educational activities are driven by an underlying research project. This research project aims to gain valuable quantitative data by analyzing the students strategic behaviour during the educational program to increase the schools knowledge and understanding of innovation.

IFI Date

11 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

4.4 Differentiation with RSM competitors Currently RSM is still ranked in the top 10 business schools in Europe (The Financial Times LTD, 2010). These business schools differentiates themselves through the amount of graduates, their budget and their programs. The top 10 schools are very similar in these areas. By creating a new program for RSM, we can prepare their graduates for the fast changing world. This new program can help students become true leaders in the market, by helping them prepare for uncertainties.

This will lead to higher than average incomes, which will help RSM rise in their ranking.

Compared to schools such as Harvard or Stanford, RSM is lower in the ranking of business schools, globally (The Financial Times LTD, 2010). Harvard and Stanford have such a big brand name and also have the budget to back it up. They attract more students from abroad with their innovative and diverse programs. Harvard for example uses a similar approach compared to our new program (President & Fellows of Harvard College, n.d.). They have ‘case methods’, which are real life scenarios in which students have to make good decisions to prepare them for the fast changing business climate. 80% of their teaching methods are case methods. The teachers of harvard are not teaching, but they are directing the discussion, which the students themselves have internally.

Stanford teaches in the same manner, they also use real life scenarios (Stanford University, n.d.).

They believe doing is learning. With our new program RSM can only start small, but can start by truly innovating the world of management and can compete in the same league, like Harvard and Stanford. The advantage, then, that RSM has over Harvard or Stanford is the country in which it resides. RSM has a cheaper tuition compared to schools in the USA. The threshold is lower to study in the Netherlands than in USA. This will attract more students from emerging markets, who want a solid business school, but have less money to spend. With the new program RSM can assure great leaders who will succeed in this world. This will help them towards the same ranking as Harvard and Stanford, which always have the best graduates, who do great and meaningful things after their graduation.

IFI Date

12 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

4.5 Advantage to other learning activities The new program provides a new way of learning for the students of RSM. They will learn to cope with difficult situations in practise and this will push them towards new innovative ideas. Compared to lectures and workshops, this program can provide much more. As our interview indicates; in the lectures that exist these days the interaction is only one sided. The professor teaches and the students learn. This will not lead to much innovation. Workshops are a slight improvement to lectures, but these usually tend to be short and not innovative. In workshops students learn a certain method, so they can familiarize themselves with this particular method. Both the aforementioned teaching methods are too theoretical, and not practical enough. Our new program can provide the practical side.

However, one could still argue that internships are way more practical compared to the new program. This is true to a certain extent, internships are indeed a good way to learn in the real world, but this way of learning has its flaws too. Most internships are very ‘work driven’, this means that a higher up tells the intern what they need to do, and do that for the upcoming 3-6 months. The learning curve is really small and thus the intern will not learn to cope with difficult situations, and they will not innovate. Furthermore, the students cannot ‘learn’ management if they have to do the work for the manager. Our new program provides both a high learning curve and a way for the students to manage innovation and innovate management. Students will teach themselves, instead of the teachers teaching them.

IFI Date

13 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

5. Plan of Implementation The key in our approach towards a perfect fit solution (Beverland & Farrely, 2011) for RSM will be our design skills. First of all, we will continue to go through an immersive research process to create sensitivity on the future vision of RSM. This process contains multiple types of activities like attending parts of the study program as a student, observing the different parties that are involved (board members, teachers, students) and talking to these parties. The next step is to explicate the vision of RSM through visualizations (i.e. sketches, graphics and maps). x Through these previously described steps, IFI is able to explicate the evolving problem definition and its relating opportunities throughout the entire design process. (Calabretta et al, 2012) Next, we will formulate a tangible solution for implementation of the RSM vision. (Calabretta et al, 2012) This will be an iterative process where our design skills allow us to visualize and communicate our ‘solutions in progress’. RSM management will be involved to discuss the outcome of each iteration and to formulate points of improvement. Roughly speaking, IFI carries out the process-related roles of design (Valencia et al, 2011) to come to a tangible solution. Through this process we will come to a perfect fit solution that will allow RSM to rise even higher in the list of top quality business schools.

Time table The entire process, up to implementation of the solution will take about 6 months. Below, a global overview of the timetable is given: Phase 1. Immersive research process

- attending parts of the educational program - observing involved parties - interviews Phase 2. Visualization of opportunity and vision - sketches - graphics

IFI Date

14 05-04-2013

(1 week)

(1 week)

Phase 3. Iterative process of development

- co-creation session multiple stakeholders - presentation of iteration 1 and co-creation - presentation of iteration 2 and co-creation - final concept presentation and

workshop for implementation.

Phase 4. Implementation - workshops - test period

(3 months, 3 iterations) (start phase 3) (after one month) (after 2 months) (after 3 months)

(3 months)

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

Co-creation sessions The IFI team of strategic designers has the expertise to facilitate creative collaborative sessions with their clients. Few methods that we think are very effective in these sessions are scenario building, context mapping and role-playing. By involving our client early on in the design process, we ensure a perfect fit solution that gets better with every iteration that we go through. This way of working will ensure that we co-create with RSM and have a larger influence in the decision making (Calabretta, Gemser, Wijnberg & Hekkert, 2013).

Iteration evaluation In order to get the most of feedback, next to co-creation, we will also organize presentations of iterations in process. These presentations will be very visual and interactive to maximize your understanding of the concept. Through these designer skills, we will be able to gain valuable feedback to consider in the new iteration.

Support in concept implementation After the presentation of the final concept, we will facilitate workshops for implementation of the proposed education service. Also, we will facilitate a period of testing to identify the final issues for refinement. The workshops and testing we do in cooperation with partners, to ensure quality and successful implementation.

IFI Date

15 05-04-2013

Client

Final Report Group 2 - IFI Design Consultancy ID4340 Strategic Value of Design

References Articles Beverland, M. B., & Farrelly, F. J. (2011). Designers and Marketers: Toward a Shared Understanding, Design Management Review, 22(3), 62-70.

Bohemia, E. (2002). Designer as integrator: reality or rhetoric?, The Design Journal, 5(2), 23-34.

Calabretta, G., Gemser, G., Wijnberg, N., & Hekkert, P. (2013). Collaborating with Design Consultancy Firms for Effective Strategic Decision-Making in New Product Development.

Gemser, G., Candi, M., & van den Ende, J. (2011). How Design Can Improve Firm Performance, Design Management Review, 22(2), 72-77.

Hertenstein, J.H., Platt, M.B. & Veryzer, R.W., (2005). The impact of industrial design effectiveness on corporate financial performance, Product Innovation Management, 22, 3-21 Karjalainen, T. M., & Snelders, D. (2010). Designing Visual Recognition for the Brand*. Journal of Product Innovation Management, 27(1), 6-22.

Secomandi, F., & Snelders, D. (2011). The object of service design, Design Issues, 27(3), 20-34.

Valencia, A., Person, O., & Snelders, D. (2011). How Do Managers Of A Business-To-Business Company Look To Industrial Design?

Veryzer, R. W., & Borja de Mozota, B. (2005). The Impact of User�Oriented Design on New Product Development: An Examination of Fundamental Relationships*. Journal of Product innovation management, 22(2), 128-143.

Websites President & Fellows of Harvard College (n.d.). Accessed April 2, 2013, http://www.hbs.edu/ Rotterdam School of Management, Erasmus University, (2013). Accessed February 25, 2013, http://www.rsm. nl Stanford University (n.d.). Acceesed April 2, 2013, http://www.gsb.stanford.edu/ The Financial Times LTD (2010). European business school rankings. Accessed March 26, 2013, http://rankings.ft.com/businessschoolrankings/european-business-school-rankings-2012 The Financial Times LTD (2010). Global MBA rankings. Accessed March 26, 2013, http://rankings.ft.com/ businessschoolrankings/global-mba-rankings-2012 IFI Date

16 05-04-2013