Design is interpreted differently. In SME sector, engineering is considered as DESIGN. Excellent Engineering is not excellent design.

1. Business and DESIGN
24th February, 2014
Self Assessment of Ability to Think Differently Prof. P Achutha Rao
11Prof. P Achutha Rao

2. Why are we in Business?
• Make Money?
• How do we make money?
2Prof. P Achutha Rao

3. ORGANISATION
Consumes
Produces
Making Money
Sells,
Consumes
“Resources”
Produces
“Products”
“Services”
Makes
Money
in a SELLER”S MARKET
3
Prof. P Achutha Rao

4. ORGANISATION
Seller’s Market
Making Money
4Prof. P Achutha Rao

5. ORGANISATION
Seller’s Market
Making Money
Where are these now, and WHY?
5Prof. P Achutha Rao

6. ORGANISATION
Seller’s Market
Making Money
Decisions based on internal considerations
“Measurables”
6Prof. P Achutha Rao
Comfortable in a “Protected market”
Could not survive the “Global Competition”

7. Well established Firms - Incumbency Factor
Doing Things
Doing Things Well
Doing Things Better
Was enough to survive in a
Protected Market
and
Stable Technology
Prof. P Achutha Rao 7
Doing Things Better
Focus on improving EFFICIENCY –
Only Internal Considerations

8. Well established Firms - Incumbency Factor
Doing Things
Doing Things Well
Doing Things Better
Was enough to survive in a
Protected Market
and
Stable Technology
Prof. P Achutha Rao 8
Doing Things Better
Focus on improving EFFICIENCY –
Only Internal Considerations
Prof. P Achutha Rao 8Innovation – Prof. P Achutha Rao 8
Global
Competitive Market
Technology Explosion
Doing THINGS DIFFERENTLY
Doing DIFFERENT THINGS

9. Well established Firms - Incumbency Factor
• Doing Things
• Doing Things WELL
• Doing Things BETTER
was enough to survive in a
Protected Market
and
Stable TECHNOLOGY
Were incapable of changing the way
they were doing Business,
hence could not survive
• Doing Things BETTER
• Focus on improving efficiencies - internal considerations
Prof. P Achutha Rao 9Innovation – Prof. P Achutha Rao 9
Global
Competitive Market
Technology Explosion
Doing THINGS DIFFERENTLY
Doing DIFFERENT THINGS

10. "Earlier there was this telephone.
But now we have come in to the
era of Smartphone.
This is development of Congress.
https://www.facebook.com/427861923902309/photos/a.4855
40304801137.108113.427861923902309/691948850826947/?
type=1&theater
If ITI were in the Smart Phone
Business today, we could
have agreed with Him.
10Prof. P Achutha Rao

11. Telephone is luxurious
Long waiting period
Only one Manufacturer.
Only one Instrument
per house hold.
Customer has no choice
1970
achutha rao – design to improve quality of life
Customer has no choice
of the instrument.
Only one colour - BLACK
Fixed location for the
Instrument
11 Prof. P Achutha Rao

12. • Where do we keep the receiver when
the call is for somebody else?
• Rotary dialing is very tiring and
cumbersome when more numbers are
involved and the lines are engaged
1970
Receiver in normal Position
Receiver waiting to be picked up by the
Caller, call is alive is indicated by
achutha rao – design to improve quality of life
1970
12
Prof. P Achutha Rao
Caller, call is alive is indicated by
GLOWING LED

13. 13
Prof. P Achutha Rao

14. 14
Prof. P Achutha Rao

15. Development Speed of Civilisation
Of 1000 generations in the last 40,000 years,
• Only today’s generation has
• traveled in outer space,
• has used atomic energy, PCs, and notebooks, and
• uses artificial satellites to transmit audio, video
and other information around the globe.and other information around the globe.
15
Michael A. Orloff, Inventive Thinking through TRIZ: A Practical Guide (Berlin: Springer, 2003) 1
Prof.PAchuthaRao
90% of the knowledge and all material values
that have arisen in the history of humanity were
developed in the 20th century!

16. ORGANISATION
in a
Competitive Global Village
Making Money
Resources Products
“Perceived
VALUE”
Competitive
Product
16Prof. P Achutha Rao

17. ORGANISATION
in a
Competitive Global Village
Making Money – Innovation: TOMORROW
Resources Products
Buyers’ Market
Features
Price
(Product Offer)
Expectations
Costs
(Perceived Value)
17
Prof. P Achutha Rao

18. ORGANISATION
exists to
Create customer VALUECreate customer VALUE
Cost Value
Why are we in Business?
PerceivedInternal
Make Meaning
(Affordable)
18
Prof. P Achutha Rao

19. Why are we in Business?
• Make MEANING!
19
Guy Kawasaki, The Art of the Start: The Time-tested, Battle-hardened Guide for Anyone Starting Anything
(New York: Portfolio-Penguin, 2004) 3–5.
Prof.PAchuthaRao

20. How do we make MEANING?
• By creating ‘CUSTOMER VALUE’
• When you create Customer Value, He
HE makes Profit!
• How does HE make ‘Profit”?
http://1.bp.blogspot.com/_LYIdC4yxm
Ac/TThbwm11wcI/AAAAAAAAAG4/o2v
Cq1F9_1k/s1600/common+image.jpg
• How does HE make ‘Profit”?
• He ‘Benefits’ from investing
in our ‘Products’
• When HE makes Profit, WE make Profit!
20
http://1.bp.blogspot.com/_LYIdC4yxm
Ac/TThbwm11wcI/AAAAAAAAAG4/o2v
Cq1F9_1k/s1600/common+image.jpg
‘Customer VALUE’‘Customer VALUE’
ImpactImpact
Quality of LIFEQuality of LIFE
Prof. P Achutha Rao

21. Make MEANING
• By Business Innovation
– Create ‘Customer VALUE’
• Understand what “benefits” the user is looking
for in our “PRODUCT” and offer them affordably
• Create a Desirable Experience through• Create a Desirable Experience through
“DESIGN THINKING”
• Successful innovation increases the
benefits-to-costs ratio = VALUE
as perceived by the USER
21Prof. P Achutha Rao

22. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Context Stable,
Protected market
“Meaning”
defined by
Value added before use.
Price
Decision Making Based predominantly on
internal considerations
“Inside Out”
22
Prof. P Achutha Rao

23. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Make Meaning
Context Stable,
Protected market
Dynamic,
“Global Village”
Technology Explosion
“Meaning”
defined by
Value added before use.
Pricedefined by Price
Decision Making Based predominantly on
internal considerations
“Inside Out”
23
Prof. P Achutha Rao

24. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Make Meaning
Context Stable,
Protected market
Dynamic,
“Global Village”
Technology Explosion
“Meaning”
defined by
Value added before use.
Price
Value in Use
Value Propositiondefined by Price Value Proposition
How people want to
live their LIFE
Decision Making Based predominantly on
internal considerations
“Inside Out”
24
Prof. P Achutha Rao

25. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Make Meaning
Context Stable,
Protected market
Dynamic,
“Global Village”
Technology Explosion
“Meaning”
defined by
Value added before use.
Price
Value in Use
Value Propositiondefined by Price Value Proposition
How people want to
live their LIFE
Decision Making Based predominantly on
internal considerations
“Inside Out”
Based on External
Considerations.
“ Outside In”
25
Prof. P Achutha Rao

26. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Make Meaning
Context Stable,
Protected market
Dynamic,
“Global Village”
Technology Explosion
“Meaning”
defined by
Value added before use.
Price
Value in Use
Value Propositiondefined by Price Value Proposition
How people want to
live their LIFE
Decision Making Based predominantly on
internal considerations
“Inside Out”
Based on External
Considerations.
“ Outside In”
MindsetMindset Embedded Mindset*Embedded Mindset*
Matt Kingdon, The science of Serendipity
26
Prof. P Achutha Rao

27. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Make Meaning
Context Stable,
Protected market
Dynamic,
“Global Village”
Technology Explosion
“Meaning”
defined by
Value added before use.
Price
Value in Use
Value Propositiondefined by Price Value Proposition
How people want to
live their LIFE
Decision Making Based predominantly on
internal considerations
“Inside Out”
Based on External
Considerations.
“ Outside In”
MindsetMindset Embedded Mindset*Embedded Mindset*
Matt Kingdon, The science of Serendipity
Flexible ThinkingFlexible Thinking
27
Prof. P Achutha Rao

28. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Make Meaning
Context Stable,
Protected market
Dynamic,
“Global Village”
Technology Explosion
“Meaning”
defined by
Value added before use.
Price
Value in Use
Value Propositiondefined by Price Value Proposition
How people want to
live their LIFE
Decision Making Based predominantly on
internal considerations
“Inside Out”
Based on External
Considerations.
“ Outside In”
Mindset Embedded Mindset*Embedded Mindset*
Matt Kingdon, The science of Serendipity
Flexible ThinkingFlexible Thinking
Value Creation
Process
Inside-out DESIGN Outside-In DESIGN28
Prof.PAchuthaRao

29. Role of DESIGN over time
Source: Les Wynn, DMI 2000

30. Role of DESIGN over time
Source: Les Wynn, DMI 2000
Design • User Focus
• Cultural and social context
• VALUE ADDED
• Differentiation
Customer
Focus
What is DESIGN?

31. "Everything is Design"
Tom Peters
31
WHAT IS DESIGN

32. "Everybody is a Designer"
Henry Dreyfuss
32
WHO IS A DESIGNER
Henry Dreyfuss

33. We bear in mind that the object being
worked on is going to be ridden in,
sat upon, looked at, talked into,
activated, operated or in some way
used by people.
When the point of contact between the
product and the people becomes
a point of friction, then the industriala point of friction, then the industrial
designer has failed.
On the other hand, if people are made safer, more efficient,
more comfortable – or just plain happier – by contact
with the product, then the designer has succeeded”
33
WHO IS A DESIGNER

34. "Everything is designed, one way or another”.
WHAT IS DESIGN
"Everything is designed, one way or another”.
Some objects are designed well, while others are
not.
34
Paola Antonelli, Humble Masterpieces, Everyday marvels of Design, ReganBooks.
Image: http://images.theglobeandmail.com/archives/RTGAM/images/20080725/whFordModelTPIX0725/1908ModelTcrank.jpg 34
Prof.PAchuthaRao

35. WHAT IS DESIGN"Everything is designed, one way or another”.
Some objects are designed well, while others are not.
35
35
Prof. P Achutha Rao

36. WHAT IS DESIGN'Design is not important
Good Design is IMPORTANT Jonathan Ive
36
36
Prof.PAchuthaRao

37. achutha rao – design to improve quality of life
37Prof. P Achutha Rao

38. How do we level head light?
Increasing number means going up or down?
achutha rao – design to improve quality of life 38Prof. P Achutha Rao

39. achutha rao – design to improve quality of life
How do we remember this table?
What is to do with position “1”
39Prof. P Achutha Rao

40. MARUTHI 800
USABLE?
40
The steering wheel is not aligned with the
driver’s seat.
What are the long term implications?
Brake Pedal is to the left of the seat center.
Accelerator pedal is just right to the seat center.
Prof. P Achutha Rao

41. SANTRO
Rear Wiper “On” Position
Rear Wiper Fountain “On” Position
USABLE?
41
Rear Wiper starts first. The fountain starts later. Wiper will always run
dry, even though user’s manual says “Never run the wiper dry” but it is
designed to run dry.
Prof. P Achutha Rao

42. 42Prof. P Achutha Rao

43. SANTRO
Rear Wiper “On” Position
Rear Wiper Fountain “On” Position
USABLE?
Rear Wiper starts first. The fountain starts later. Wiper will always run
dry, even though user’s manual says “Never run the wiper dry” but it is
designed to run dry.
43
Prof. P Achutha Rao

44. 3D Engraving Machine – IMTEX 2013 Excellent Technology –
Poor “Design” in terms
of VALUE PERCEPTION
of International
Market.
Lacks visual
sophistication to
command the PRICE.
44
Prof. P Achutha Rao

45. Damaged Wires
covered by
insulation tape
45
Prof.PAchuthaRao

46. Ill - designed Controls and
Displays .
46
Prof.PAchuthaRao

47. Rusted/poorly painted pipe
47
Prof. P Achutha Rao

48. Broaching Machine – IMTEX 2013
48
Prof. P Achutha Rao
Likely to activate controls
at the bottom, when
operating.

49. IMTEX 2013
'Design is not important
Good Design is IMPORTANT’
Jonathan Ive
49
Prof. P Achutha Rao
Operator needs to
stand on the steps to
use the Programmer!

50. IMTEX 2013
How do we access the
controls behind the
Wheel?
50
Prof. P Achutha Rao

51. How do we access the controls
IMTEX 2013
51
Prof. P Achutha Rao
How do we access the controls
behind the Wheel?

52. Do we have a
ladder to reach
the controls and
displays?
IMTEX2013
52
Prof. P Achutha Rao

53. IMTEX2013
53
Prof. P Achutha Rao

54. How easily can
we reach the
controls and
displays?
'Design is not important
Good Design is IMPORTANT’
Jonathan Ive
54
Prof. P Achutha Rao
IMTEX 2013

55. IMTEX 2013
W easy is it to service?
55
Prof. P Achutha Rao

56. IMTEX 2013
Should the wires be laid
to create visual cluster
and create confusion?
56
Prof. P Achutha Rao
and create confusion?

57. IMTEX-2013
57
Prof. P Achutha Rao
Utter disregard to ergonomic
considerations, basic design
guidelines not recognised.
How easily and
quickly, can we
operate this
switch?

58. Protruding Key obstructing the
operation of switch
58
Prof. P Achutha Rao
Orientation and height of
placement of switch module

59. Good ENGINEERING
must not be confused for
Good DESIGN!Good DESIGN!
59
Prof. P Achutha Rao

60. Good ENGINEERING
must not be confused for
Good DESIGN!
Excellent Technology/Engineering
is
NOT excellent DESIGN
60
Prof. P Achutha Rao

61. Design – Technology focused
• Announced in September 1989, The
Mac Portable was Apple's first attempt
at a more easily portable Macintosh.
• It had a bay for a 3.5" half-height drive,
and could support up to two Super
Drives.
• Reaction to the Portable was poor.
It was clunky, slow, had no expansion
Classic Failures
It was clunky, slow, had no expansion
capabilities, and its active matrix screen
(later backlit) made it incredibly
expensive. It sold for $6,500.
61“Biggest tech product failures,” Object: A Curations Creation, http://www.oobject.com/category/biggest-failure/
http://www.newlaunches.com/entry_images/0307/22
/macintosh_portable.jpg
Apple Portable MacintoshApple Portable Macintosh –– A Classic FailureA Classic Failure
Sophisticated engineering must not be
confused for sophisticated design
Prof.PAchuthaRao

62. DifferentConnotations
http://oldcomputers.net/apple-newton.html
1990’s – Apple Newton Classic Failures
Design–DifferentConnotations
Peter Merholz, Brandon Schauer, David Verba, Todd Wilkens: Subject to Change, O’REILLY, 2008
http://oldcomputers.net/apple
http://oldcomputers.net/apple-
newton.html
The Apple Newton crammed features and promises
its large form-factor
62
Prof.PAchuthaRao

63. DifferentConnotations 1990’s – Palm PioltDesign–DifferentConnotations
Peter Merholz, Brandon Schauer, David Verba, Todd Wilkens: Subject to Change, O’REILLY, 2008
http://petermigut.com/wp-content/uploads/2012/05/PDA-PalmPilot.jpg
Palm Pilot delivered only the essentials
that users needed
63
Prof. P Achutha Rao

64. DifferentConnotations
http://petermigut.com/wp-
content/uploads/2012/05/PDA-PalmPilot.jpg
1990’s – Palm Pilot – Personal Digital Assistant
Jeff Hawkins measured the sizes of his colleagues’ shirt pockets,
Design–DifferentConnotations
Peter Merholz, Brandon Schauer, David Verba, Todd Wilkens: Subject to Change, O’REILLY, 2008
Jeff Hawkins measured the sizes of his colleagues’ shirt pockets,
and then carved a block of wood that would fit inside.
He carried this block of wood everywhere, and when someone
mentioned a date or a piece of information he wanted to jot
down, he would mime inputting that information into the block
of wood.
When engineers suggested new features and functionality to
him, he’d hold up the block of wood and ask, “Where would it
go”
64
Prof. P Achutha Rao

65. DifferentConnotations
:SubjecttoChange,O’REILLY,2008
2000’s Classic Failures
Design–DifferentConnotations
PeterMerholz,BrandonSchauer,DavidVerba,ToddWilkens:SubjecttoChange,
http://apple-history.com/images/models/g4cube.jpg
The Apple G4 was worthy of MOMA,The Apple G4 was worthy of MOMA,
but not the marketbut not the market
65
Prof. P Achutha Rao

66. Design – Different Connotations 2000’s
• Housed in an 8x8x8 cube, the G4 Cube combined the
elegance of the iMac with the power of the PowerMac
G4.
• The G4 Cube was a foray into the business market, as
well as an answer to those who wanted an iMac-like
machine, with more choice in monitors.machine, with more choice in monitors.
http://apple-
history.com/images/models/g4cube.jpg
http://apple-history.com/g4cube 66
Prof.PAchuthaRao

67. Design – Different Connotations 2000’s
• The Cube was a remarkable feat of engineeringa remarkable feat of engineering,
crammed inside an elegant caseelegant case.
• The Cube shipped to retail markets with a 450 MHz G4
processor, a 20 GB hard drive, a 56 kbps modem, 64 MB
of RAM, and Apple s Pro Mouse, for $1799.
• Another configuration was available through the Apple• Another configuration was available through the Apple
Store, with a 500 MHz G4, a 30 GB hard drive and 128
MB of RAM, for $2299. Gigabit Ethernet was available
as a BTO option.
http://apple-
history.com/images/model
s/g4cube.jpg
http://apple-history.com/g4cube 67
Prof. P Achutha Rao

68. Design – Different Connotations 2000’s
• The consensus was that Apple had misjudged the
market, making the Cube an expensive "luxury"
computer instead of a cheaper monitor-less iMac.
http://apple-
history.com/images/models/g4cube.jpg
http://apple-history.com/g4cube 68Prof. P Achutha Rao

69. DifferentConnotations
:SubjecttoChange,O’REILLY,2008
Famous venture capitalist
John Doerr said that Segway
sales might hit $1 billion as
fast as any company in
history.
The company spent about
$100 million developing the
product.
Design–DifferentConnotations
PeterMerholz,BrandonSchauer,DavidVerba,ToddWilkens:SubjecttoChange,
http://www.team228.org/media/pictures/view/23
Dean Kamen on his Segway
at the 2002 Kickoff Event.
From 2001 to the end of 2007,From 2001 to the end of 2007,
the company only sold 30,000the company only sold 30,000
units of its twounits of its two--wheeledwheeled
scooter.scooter.
http://www.time.com/time/specials/packages/article/0,28804,1898610_189
8625_1898641,00.html #ixzz2ZZBJuLzI
69
Prof. P Achutha Rao

70. DifferentConnotations
:SubjecttoChange,O’REILLY,2008
2000’s
Is the Segway relevant
to the way people live
their lives?
It was a product,
not a solution
http://www.innovationmanagement.se/2012/05/02/a-lesson-in-
innovation-why-did-the-segway-fail/
http://www.themumblog.com/wp-content/uploads/2013/06/Segway.jpg
Design–DifferentConnotations
PeterMerholz,BrandonSchauer,DavidVerba,ToddWilkens:SubjecttoChange,
innovation-why-did-the-segway-fail/
Focused On Invention,Focused On Invention,
Rather Than InnovationRather Than Innovation
http://www.techdirt.com/articles/20090730/1958335722.shtml
70
Prof. P Achutha Rao

71. Engineering Design Design Thinking
Functions
Performance
Use Context
Form & Function
Useful
Usability
GOOD
Design
Machine/Equipment People
Product is a set of
components to
deliver functions
71
Performance
Reliability
Cost
Usability
Desirability
Affordability
Product is a set of
attributes – useful,
usable & desirable
Prof. P Achutha Rao

72. Engineering Design Design Thinking
Engineering design is the use
of scientific principles,
technical information and
imagination in the definition
Design thinking is a proven
and repeatable problem-
solving protocol that any
business or profession can
http://www.fastcompany.com/resources/design/dziersk/design-
Design
is conceiving and giving form
to artifacts
that solve problems
72
imagination in the definition
of a mechanical structure,
machine or system to
perform prescribed functions
with the maximum economy
and efficiency (Fielden, 1963)
business or profession can
employ to achieve
extraordinary results.
A protocol for solving
problems and discovering
new opportunities
MarkDziersk,http://www.fastcompany.com/resources/design/dziersk/design
thinking-083107.html
that solve problems
Karl T. Ulrich, University of Pennsylvania; DESIGN – Creation of Artifacts in Society
Prof. P Achutha Rao

73. Engineering Design Design Thinking
Creation and
validation of a
body-of-knowledge
Creation and
adaptive use of a
body-of-behaviors and
73
body-of-knowledge body-of-behaviors and
values
Prof. P Achutha Rao

74. GOOD DESIGN
is about creating
DESIRABLE EXPERIENCES
to ENHANCE VALUE
74
Prof. P Achutha Rao

75. Basic
Essential
Services
Optimum
Experiences
Design enables to move up in the Value Chain
75
The progression of economic value from core commodities to optimum experiences
(adapted from The Experience economy by Pine and Gilmore)
Core
Commodities
Basic
Goods
Cost Driven Premium PRICE
75
Prof. P Achutha Rao

76. Basic
Essential
Services
Optimum
Experiences
COMPETITIVEPOSITIONING
Design enables to move up in the Value Chain
76
The progression of economic value from core commodities to optimum experiences
(adapted from The Experience economy by Pine and Gilmore)
Core
Commodities
Basic
Goods
COMPETITIVEPOSITIONING
Cost Driven PremiumPRICING STRATEGY
76
Prof. P Achutha Rao

77. High
Differentiation
Basic
Essential
Services
Optimum
Experiences
COMPETITIVEPOSITIONING
Design enables to move up in the Value Chain
77
Low
Differentiation
The progression of economic value from core commodities to optimum experiences
(adapted from The Experience economy by Pine and Gilmore)
Core
Commodities
Basic
Goods
COMPETITIVEPOSITIONING
Cost Driven Premium
PRICING STRATEGY
77
Prof. P Achutha Rao

78. High
Differentiation
High
Relevance
CUSTOMERNEEDS
BundleofAttributes
Basic
Essential
Services
Optimum
Experiences
COMPETITIVEPOSITIONING
Design enables to move up in the Value Chain
78
Low
Differentiation
The progression of economic value from core commodities to optimum experiences
(adapted from The Experience economy by Pine and Gilmore)
CUSTOMERNEEDS
Bundle
Low
Relevance
Core
Commodities
Basic
Goods
COMPETITIVEPOSITIONING
Cost Driven Premium PRICE
PRICING STRATEGY
78
Prof. P Achutha Rao

79. High
Differentiation
High
Relevance
CUSTOMERNEEDS
BundleofAttributes
Basic
Essential
Services
Optimum
Experiences
COMPETITIVEPOSITIONING
Design enables to move up in the Value Chain
79
Low
Differentiation
The progression of economic value from core commodities to optimum experiences
(adapted from The Experience economy by Pine and Gilmore)
CUSTOMERNEEDS
Bundle
Low
Relevance
Core
Commodities
Basic
Goods
COMPETITIVEPOSITIONING
Cost Driven PremiumPRICING STRATEGY
79
Prof. P Achutha Rao

80. High
Differentiation
High
Relevance
CUSTOMERNEEDS
BundleofAttributes
Basic
Essential
Services
Optimum
Experiences
COMPETITIVEPOSITIONING
Design enables to move up in the Value Chain
80
Low
Differentiation
The progression of economic value from core commodities to optimum experiences
(adapted from The Experience economy by Pine and Gilmore)
CUSTOMERNEEDS
Bundle
Low
Relevance
Core
Commodities
Basic
Goods
COMPETITIVEPOSITIONING
Cost Driven PremiumPRICING STRATEGY
80
Prof. P Achutha Rao

81. Cost Reduction “Syndrome”
Why people buy products?
It performs “something” – the buyer derives some
benefit/s.
BenefitsBenefits
Harms + Costs
Product Value =
81
Prof. P Achutha Rao

82. Value Chain
ProductVALUE
(Harms+Costs)
achutha rao – design to improve quality of life
Cost Driven Premier Price
ProductVALUE
Benefits÷(Harms+Costs)
82
Prof. P Achutha Rao

83. Cost Reduction “Syndrome”
Internal External
Features
InternalCosts
Margin
SellingPrice
Customer
PerceivedValue
Market
Segment
Position in
Value Chain
A FA CA MA PA VA BA A
Product
A PA VA BA A
A
83
Prof. P Achutha Rao

84. Cost Reduction “Syndrome”
Internal External
Features
InternalCosts
Margin
SellingPrice
Customer
PerceivedValue
Market
Segment
Position in
Value Chain
A FA CA MA PA VA BA A
Product
A PA VA BA A
A FA CA-X MA+X PA VA BA A A
84
Prof. P Achutha Rao

85. Internal External
Features
InternalCosts
Margin
SellingPrice
Customer
PerceivedValue
Market
Segment
Position in
Value Chain
A FA CA MA PA VA BA A
A FA CA-X MA+X PA VA BA A
A FA C M P V B A
Product
A
A FA CA-2X MA+2X PA
VA BA A
A
• How long can we continue?
• Has the “Benefits” to be offered by a “Product” enhanced?
• Has the “Harms + Costs” to the customer reduced by this
approach? If so, will it be significant?
• Will this work in a Competitive Market?
• Will the “BENEFITS” to be offered remain “STATIC” at all?
85
Prof. P Achutha Rao

86. Cost Reduction “Syndrome”
Benefits
Harms + Costs
Product Value =
Benefits
Decrease (Harms + Costs)
Increase Product Value =
86
Prof. P Achutha Rao
Increase Benefits
Harms + Costs
Increase Product Value=
Increase Benefits
Decrease (Harms + Costs)
Increase Product Value=

87. Cost Reduction “Syndrome”
Benefits
Harms + Costs
Product Value =
Internal Decisions External Decisions
Product PERCIEVED VALUE
87Prof. P Achutha Rao

88. Cost Reduction “Syndrome”
Benefits
Harms + Costs
Product Value =
Internal Decisions External Decisions
Product PERCIEVED VALUE
Internal Cost Does not enhance
88Prof. P Achutha Rao
Internal Cost
Reductions
Does not enhance
PERCIEVED VALUE

89. Cost Reduction “Syndrome”
Benefits
Harms + Costs
Product Value =
Internal Decisions External Decisions
Product PERCIEVED VALUE
89Prof. P Achutha Rao
Product PERCIEVED VALUE
Internal Cost
Reductions
Does not enhance
PERCIEVED VALUE
Enhance Benefits and
Manage Internal Costs
Increased
PERCIEVED VALUE

90. What can we do with this product?
Any suggestions for Cost
Reduction?
How do we enhance VALUE?
Gets rusted,
Documents with long
storage periods?
90
storage periods?
Any harms/drawbacks?
We will not know
when the staple pins
are finished?

91. 91
http://www.yankodesign.com/2013/09/25/alert-staples

92. A whale of a stapler
92
http://www.yankodesign.com/2013/09/23/a-whale-of-a-stapler/

93. 93Prof. P Achutha Rao

94. 94Prof. P Achutha Rao

95. Sophisticated Engineering must not be confused for sophisticated
DESIGN
95Prof. P Achutha Rao

96. 96Prof. P Achutha Rao

97. 97Prof. P Achutha Rao

98. 98Prof. P Achutha Rao

99. Design Thinking
• Sophisticated Engineering must not be confused
for sophisticated DESIGN
99

100. Design Thinking
• Sophisticated Engineering must not be confused
for sophisticated DESIGN
100
BBVA Introduces The Future of Self-Service Banking
http://www.mybanktracker.com/bank-news/2010/08/06/bbva-introduces-future-selfservice-banking/
Prof. P Achutha Rao

101. Design Thinking
• Sophisticated Engineering must not be confused
for sophisticated DESIGN
101
BBVA Introduces The Future of Self-Service Banking
http://www.mybanktracker.com/bank-news/2010/08/06/bbva-introduces-future-selfservice-banking/
Prof. P Achutha Rao

102. Design Thinking
INTUITIVE INTERFACE
No longer is the ATM confined by
a limited number of buttons. The
touch screen accommodates any
purpose, including a full standard
keyboard.
102
BBVA Introduces The Future of Self-Service Banking
http://www.mybanktracker.com/bank-news/2010/08/06/bbva-introduces-future-selfservice-banking/
Prof. P Achutha Rao

103. 1986
Process camera used in News-
Paper s and other publishing
houses.
Microprocessor controlled semi-
automatic Camera with 3 lenses.
Manual operation in case of
failure of circuits, enabling
unhindered use.
achutha rao – design to improve quality of life
103
Prof. P Achutha Rao
Protruding keys will be activated when the
operator climbs on a stool and verifies the
image, before exposing. Camera gets reset!
Requires AC.
Flush, washable membrane key pads.
Memory for 100 programmes. More accurate,
simplified operation. No air-conditioning
required.
Monotype India Ltd.

104. Design for SERVICE -
PCB exposed and held in
position for Service, only one
person is required, unlike in
the earlier model, where
somebody has to hold the
PCB in position for inspection.
achutha rao – design to improve quality of life
104Prof. P Achutha Rao

105. Many variants using
common frames and
other parts, can be
changed in the
assembly line, reduced
Manual Camera
achutha rao – design to improve quality of life
105Prof. P Achutha Rao
assembly line, reduced
delivery time drastically
and costs.

106. 1986
Micro processor based, Sealed
Membrane Key pad, storage for
100 programmes, and manual
override in case of failure
enabling retrieval of the
expensive exposed material
without loss.
achutha rao – design to improve quality of life
106
Digital Paper and
Film Processor for
Publishing Industry –
First Time in the World,
1986
Prof. P Achutha Rao

107. Why Microsoft produces lousy Products?
http://pareekhjain.blogspot.in/2012/07/why-microsoft-develops-lousy-products.html
107
Prof. P Achutha Rao

108. Human Centred Design – DESIGN Thinking
Technology
Feasibility
Business
Viability
Process Innovation
ExperienceExperience
108
Reference: http://readymade.typepad.com/readymade_news/design-thinking/
Human Values
Desirable
Usable
Useful
Functional
Innovation
Emotional
Innovation
ExperienceExperience
InnovationInnovation
Prof. P Achutha Rao

109. PRODUCT
SUCCESS
Doing the
RIGHT PRODUCT
Bundle of
Attributes Effectiveness
SUCCESS
Doing the
PRODUCT RIGHT
Design
Process
109
Preston G. Smith, Donald G. Reinertsen; Developing Products in half the Time, New rules, new tools: John Wiley & Sons, Inc
Efficiency

110. The Paradigm Shift
Old Paradigm
Make Money
New Paradigm
Make Meaning
Mindset Embedded
Mindset*
Matt Kingdon, The science of Serendipity
Flexible ThinkingFlexible Thinking
Doing Things Well Doing ThingsDoing ThingsDoing Things Well Doing ThingsDoing Things
DifferentlyDifferently
Doing DifferentDoing Different
ThingsThings
Is there a NEED to change the Paradigm?
How will you bring this change in your Organisation?
110Prof. P Achutha Rao

111. Where to start?

112. Change is Difficult
“The real difficulty in changing the course of any
enterprise lies not in developing new ideas, but in
escaping old ones.”
- John Maynard Keynes
Derrick Palmer & Soren Kaplan Managing Principals, Innovation Point LLC: A Framework for
Strategic Innovation; Blending strategy and creative exploration to discover future business
opportunities:
http//www.innovationpoint.com/Strategic%20Innovation%20White%20Paper.pdf
112Innovation – Prof. P Achutha Rao

113. .
TRIZ Prof. P Achutha Rao, 113Prof. P Achutha Rao
.
. .

114. What is to ‘What May Be’ and ‘What Can Be’
• Change is the law of life. And those who
look only to the past or present are
certain to miss the future.
114
certain to miss the future.
John F. Kennedy
Prof. P Achutha Rao

115. WH0 IS A DESIGNER?
achutha rao – design to improve quality of life
115
Prof. P Achutha Rao

116. Business/Design
two sides of the same coin
116
DESIGN BUSINESS
Prof. P Achutha Rao

117. The Future is already here, it is just not
evenly distributed
William Gibson
Think of Tomorrow
Make Meaning
achutha rao – design to improve quality of life
Make Meaning
117Prof. P Achutha Rao