Design Thinking and Innovation

Having spent more than twenty years (as an internal or external consultant) addressing a variety of business problems for both clients and employers, I do know a thing or two about “Design Thinking”. In fact, my consulting outfit – ThinkShop.in – regularly works with clients across industries on a range of business/technology/marketing solutions, including organizing custom boot camps on topics that include Digital Strategy, Design Thinking and Customer Engagement.

But even Teachers can become Students, and there is no limit to the learning one can assimilate. So, when the opportunity arose a few months ago, to attend a workshop on the subject of ‘Design Thinking‘, I looked up the profile of the coach, and realized this was an opportunity not to be missed!

The workshop was being conducted by Prof. Srikant M. Datar – the Arthur Lowes Dickinson Professor of Business Administration, Faculty Chair of the Harvard Innovation Lab, HBS One Harvard Faculty Fellow, and Senior Associate Dean for University Affairs at Harvard Business School. A Chartered Accountant by training and a gold medalist from IIM (A), Prof. Datar holds two masters degrees and a Ph.D. from Stanford University, and brings decades of experience working with leading Fortune 500 companies as a consultant.

Though no single post can capture the depth of this subject, if you are just starting off on your journey, here are some key learnings you may find useful:

Innovation can be a breakthrough or even incremental change at a product, process or business-model level

Innovation ultimately depends on the quality of observation and insight, how we frame the problem, and quality & quantity of ideation

‘Breaking Fixedness’ – our fixed ways of thinking that help us in our day to day life, our hard-wiring – is the key to Innovation

The risks of not innovating are even greater than the risks involved in innovating

Most of us spend most of our lives in the “operational” world defined by rules, routines and rationality, while Design Thinking requires skillsets that include connection making, curiosity and experimentation

‘Status Quo Bias’ is a real thing that adversely impacts the pursuit of Innovation in any field

Techniques like multiplication, division, rapid prototyping, etc. can be used to overcome prevalent cognitive biases, when it comes to designing a relevant solution

Of course, if you are serious about building an Innovation practice, you will need to do a whole lot more, including equipping your team members with the skills they will need to make a dent.

‘Design Thinking’ matters, and investments (of time and money) made in building a strong foundation will surely reap rich rewards for your organization, when it starts impacting the Customer Experience positively. As an added bonus, you will find that it also ingrains in you a new, refreshing way to look at the world.

Did I mention, ThinkShop can help?!

Startup India: Taking Stock

Last month, Mint did a feature on Hits and Misses in the Indian Startup universe. It was a great opportunity to take stock of reality, since most of what we read about in the mainstream media is a function of “survivorship bias”. Here are some interesting statistics from that story…

  • The E-commerce sector alone has raised over $11 billion over the past decade – roughly 75% of the funds that have been raised by Indian start-ups during that period
  • Of the $11 billion, Flipkart Internet Pvt. Ltd has raised more than $4.5 billion, and is now India’s most valuable Internet company at $11.6 billion
  • The top five most-funded start-ups in E-commerce to have shut down had raised $51.1 million in total, which doesn’t include the distress sales of companies such as Letsbuy and SherSingh
  • $3.1 billion (including debt) was raised by Digital Payment startups, making Paytm – now valued at $7 billion – India’s second-most valuable Internet company
  • Of the 192 companies founded in the Cab Hailing category since 2007, 76 have shut shop; Ola is currently valued at $3.5 billion
  • Nearly 310 start-ups in Healthcare, of 2,678 founded since 2007, have shut shop; Practo, 1MG, Portea are the top startups in this segment
  • As many as 2,460 ventures in the Edu-tech / Education space incorporated since 2007; about 224 have shut down
  • Of the 2,420 start-ups founded in Hyperlocal (home services+food tech+delivery) since 2007, 780 have shut shop
  • As many as 514 ventures tried group buying model one way or the other, but at least 221 shut shop

Think about those statistics for a moment; There are plenty of lessons to learn from. Here are some of my personal takeaways…

  1. A healthy dose of funding was available to those who ventured out and attempted to create an organization of value
  2. The best known in each segment typically finds it a bit easier to gain preferred access to investors, markets and customers, simply by virtue of their size and brand salience
  3. Path-breaking, innovative ideas executed well are not the only recipe for success; Addressing a customer gap with great execution at a profitable price point can work wonders too!
  4. Despite significant resources at their disposal, and addressing a real customer need, countless startups did not survive the past decade

For some of you dreaming of launching a startup, posts like these may signify doom and gloom. For others, it will probably provide the inspiration to soldier through.

The fact is, not every venture is meant to succeed and not every startup will fail. “There is nothing in a caterpillar that tells you it’s going to be a butterfly“, said R. Buckminster Fuller. For me, the biggest lesson buried in these statistics is that building a successful organization takes decades, not years. There is simply no shortcut to it.

Crystal Gazing: 2018

We are almost at the halfway mark of 2017, and I thought it would be a good idea to capture some emerging trends, and explore how business will be impacted in the coming months…

Trend #1 – Chatbots

Bots seem to be everywhere these days. And, cutting-edge organizations are rushing to deploy them. Bots today are kind of what Apps were like, just a few years ago – it sounds like every one should have one. Surely, bots offer some real advantages, and chief among them is the ability to automate repeated tasks at a fraction of the cost (of a human/manual alternative). That’s a great use case for organizations that are in scale-up mode.

What role, if any, will bots play in your organization? How can your business leverage this emerging technology to reduce operational costs or improve responsiveness? How will that impact the team?

Trend #2 – Sinking Data Costs

Intuitively, we all know that data costs are significantly lower than they used to be. In India, disruptive players like Reliance Jio have already upset the apple-cart and eroded market share (and profits) of the established telcos. Worldwide, voice and messaging is rapidly being replaced by VoIP/VoLTE and web-based messaging, with data now being the primary use of a mobile phone. Broadband Data costs inside the home are also more affordable than ever.

What will this do to Internet and Mobile penetration in emerging markets? How will customer behavior change? Will users go beyond chat and e-commerce? Is your organization ready for the next phase of evolution?

Trend #3 – Aadhaar, Everywhere

In the India context, we are witnessing no less than a revolution in terms of data linkages and availability. 1 Billion+ users have already registered for an Aadhaar id, with 93%+ coverage among adults. This, naturally, establishes a strong foundation for payments via financial inclusion, but that’s not all there is to it. Increasingly, services like filing IT returns and booking air tickets are being linked to Aadhaar. The IndiaStack APIs already offer a robust platform comprising Aadhaar + eKYC + eSign + Digital Locker, reducing Customer Onboarding time from days to hours, and we have only just begun.

How will this ever-connected universe of data impact privacy and consumer protection? What will it to to service levels? How will customer expectations evolve over time? What is your organization doing to stay ahead of the curve, or keep up with the changing dynamics?

The answers will not be easy to come by, and may differ for each one of us. As we head into these winds of change, here’s hoping we ask the right questions… and embrace Change.

Building a Personal Brand

Last month, I had the pleasure of addressing a bunch of entrepreneurs at a conference called “Breaking Barriers” on ‘Building a Personal Brand’. It’s a topic that is relevant not just to entrepreneurs, but also to owners of small-medium organizations and key executives in any large enterprise.

Here are some of the key lessons shared in my slide deck, if you are looking for a primer on How to Build a Personal Brand…

 

Step 1 – Online Presence

If you are in business, you probably have a domain name booked already. If not, get one today. Then figure out how to host a basic page about what you are with relevant contact info. Then deploy an email service that maps your domain name to your mailbox so you can send/receive emails from your own domain e.g. yourname@yourdomain.com. In terms of building an online brand, there is no comparison between this and using a free email service like GMail. So, if you don’t know how to do this, seek help. But get it done.

Step 2 – LinkedIn

The minimum expected of an online presence for your professional self or your business is to have an active profile on LinkedIn – the most popular business social network today. That means including a professional-looking profile Picture, an appropriate Headline that captures what you do, a Summary paragraph of your current role and a short description of relevant Past Roles you may have experience with. Don’t start sending out LinkedIn invites to others before you get this going – it’s just unprofessional. Have a look at others’ LI profiles to get a sense of what’s good and what’s not.

Step 3 – Marketing

When you’re an entrepreneur, “Marketing” is not the name of a department. It refers to creating a basic set of collateral which captures your credentials plus describes the product/service you offer. If you are an executive (not a business), this means having an updated CV, an active LinkedIn profile, recommendations from others, etc. in place. Create templates from this material so that you are ready to respond to any requests for information in a professional, timely manner.

Step 4 – Sales

Again, entrepreneurs shouldn’t mistake “Sales” as a label or a person. If you are in business, you are in Sales. Create a system to respond to leads or prospects, and follow it religiously. Use social media to research what your customers and competitors are up to, so you can reach out to relevant folks with information that they will value, instead of simply sending out a standard note. Who should you target in an organization? Who do you know already in play? What conversations are already happening? You will need to invest time and effort in an ongoing manner to make this work.

Bonus Tip – Get Productive

The more efficiently you manage your time, the more you will be able to do what’s important (but not always urgent) to make your personal brand a success.

 

Do remember that brand reputations take years to build and seconds to destroy. Keep at it, and you will see results.

The IndiaStack Framework

Typically, when we think of government-run initiatives in India, a certain image comes to mind – one that leaves a lot to be desired. But, India is changing. And, changing fast. Yes, most of us know about initiatives like Aadhaar. But, that’s not all there is to it.

A few months ago, I wrote about India’s Digital Divide in a post that covered my visit to some Community Information Resource Centers (CIRCs) that were empanelled with the National Digital Literacy Mission. In it, I captured my experience of interacting with the Digital Empowerment Foundation (DEFIndia.org), and with the fine folks that work at the grassroot level, ensuring that underprivileged communities in semi-urban and rural India get access to Information Technology and to the essentials skills needed to make it work.

As it turns out, there is lot more where that came from. While leading dailies are busy covering Karan Johar’s adoption on their front pages, the government – yes, the government! – has been quietly working on a digital framework over the past several years, to enable a variety of “digital services” for its citizens.

The “IndiaStack“, as it is now known, is a collection of APIs that “allows governments, businesses, startups and developers to utilise a unique digital Infrastructure to solve problems towards presence-less, paperless, and cashless service delivery”. The seeds were sown way back in 2009 with the creation of UIDAI (Aadhaar), but the form it takes today is a robust, interoperable framework that works across devices and service providers. The IndiaStack APIs include Aadhaar, eSign, eKYC, Digital Locker, Unified Payment Interface and a host of other services ranging from Electronic Toll Collection to Bharat Bill Payment System – all designed to make it easier for the common man to go about their business. It even includes a specification for Electronic Consent that puts the user at the center of the data flow as well as content flow. Imagine, a government initiative doing all this!

The benefits of adopting such a framework are immense for the urban as well as rural masses. To take an example, a large bank can use a combination of Aadhaar + eKYC + eSign + Digital Locker to reduce Customer Onboarding time from days to hours, thereby reducing drop-offs, minimizing branch operation costs and practically eliminating the need for a backoffice. Reliance Jio used such a setup recently to onboard 100 Mn+ customers in less than 3 months, with less than 10 minutes per customer (vs 1 day or more for other telcos), and at a cost of less than Rs. 3 per new customer (vs Rs. 40 or more for other telcos). “Walk Out Working” is the new benchmark for the user journey, and it’s great news for all customers.

The technology is not just for the mass affluent customers in Top 10 metros, though. As more and more service providers build services around these APIs, the unbanked and underserved communities of India will be able to use elements of the IndiaStack to push & pull payments (UPI), share their own data (e.g. prepaid recharge history) with relevant entities, and access lending credit (e.g. a one-day or one-month loan) that was unavailable to them until now.

Aadhaar is not just another identity card – it offers a platform that can verify more than 100 Mn transactions a day, in real-time. UPI is not just a fun way to build a virtual payment address – it can enable push/pull transactions from any stored value account to any other store value account. And, Digital Locker is not just another storage service – it is a full-fledged data exchange platform to offer secure access to users in a multi-provider ecosystem. Finally, many of these tools work across devices, not just on smartphones- making them available to the audiences they were designed for.

If understood correctly, and used efficiently, this digital framework has the power to transform lives at the grassroot level, bringing hundreds of millions of people within the ecosystem, and offering them the tools they need to improve their socio-economic reality. And, the technology is available today, in the form of interoperable, scalable APIs, ready to plug-and-play.

After all, India is more than a tony suburb in Mumbai or a startup hotspot in Koramangala. India does not always speak English or get 24×7 electricity. But, India is eager to learn… hungry to grow. And thankfully, these new tools are a step in the right direction, in making India data-rich and well-connected.