Design-driven development in business strategy
AUTHOR: LINN SCHNELL
SUPERVISOR: PROFESSOR ANKICA BABIC
University of Bergen,Department of Information Science and Media Studies June 2021
“When I am working on a problem, I never think about beauty. I only think about how to
solve the problem. But when I have finished, if the solution is not beautiful, I know it is
wrong.”
–Buckminster FullerAcknowledgements
Firstly, I would like to thank my supervisor, Professor Ankica Babic, for her engagement and commitment to my project from the very beginning. Thank you for your flexibility, patience and understanding. Your support if felt and highly appreciated.
I would also like to extend a huge thank you to the design experts. Thank you for agreeing to participate, thank you for your time and thank you for sharing your valuable experiences, thoughts and insights with me. This project would not have been the same without your contribution.
In chronological order of the interview given, thank you:
Lars Petter Aase @Idean Anita Steinstad @Netlife
Håvard Legreid @Bergen offentlige bibliotek Hege Harreschou @Finn.no
Jens Hauglum @Finn.no Kristin Breivik @NRK
Claus Gladyszak @Innovasjon Norge Tone F. M. Haug @TV2
Kjersti H. Eiken @Bergen Kommune
Tarald Trønnes @DOGA: Design og arkitektur Norge Eirik Solberg @Capgemini Invent
Thank you to my three wonderful children who are blissfully unaware of this whole thing, hence never asking me how my writing was going.
Thank you to my parents for an endless amount of babysitting.
Thank you to the handsome man who makes me coffee every morning.
Thank you to my friends that has cheered me on.
Linn Schnell
Bergen, 06.06.2021
Abstract
With rapidly changing markets and ultrafast technology development – a business model can be outdated before the ink is dry. The ability to shift and adapt as a business has become more crucial than ever. We see huge, international and well-established companies succumb when failing to keep pace and only a small fraction of new start-ups live to see their 5
thbirthday. To avoid “future shock” in an organisation, developing a business model that accounts for these dynamics is important not only to succeed, but to survive.
Through a Design Science framework and the Grounded Theory, performing semi-structured interviews with design experts, I have developed a comprehensive analysis and understanding of the research problem. In-depth interviews with open-ended questions provided the expert data that defined the overall concepts, their subordinate attributes and advocated the
importance of using design-driven approaches to developing business strategies.
This resulted in the D.I.S.C. (Design, Innovation, Success and Company Culture) artifact, in form of a low-fidelity model and illuminating guidelines which are simple, clear and
actionable as put forward by here presented research and literature.
It recommends a design-driven approach to developing a business strategy, that equips an
organisation for the dynamic, unpredictable future.
List of figures
Figure 1 – Design-Centric Index by DMI 2014 [13]. ... 5
Figure 2 – 8/100 start-ups succeed. Innovation Norway [2] ... 6
Figure 3 – Top three reasons why start-ups fail. Innovation Norway [2]. ... 6
Figure 4 – Design method models from Google Images. May 2021 ... 11
Figure 5 – Most-cited aspects of innovation. Nick Skillicorn 2016 [33]. ... 14
Figure 6 – Innovation Ambition Matrix. Harvard Business Review [34]. ... 15
Figure 7 – Reasons for innovation. Bessant, Joe & Tidd, John (2018) ... 16
Figure 8 – The Grounded Theory method. Glaser and Strauss [44]. ... 21
Figure 9 – Design Science Research Cycles. Alan Hevner [51]. ... 26
Figure 10 – Design Science Research Guidelines. Hevner et.al. [50] ... 27
Figure 11 – Design Evaluation Methods. Hevner et.al. [50] ... 27
Figure 12 - FINNs product development model ... 40
Figure 13 – Solution-oriented process ... 40
Figure 14 – Problem-driven process ... 40
Figure 15 – Legreid's steps to innovation. ... 49
Figure 16 – Human values in business success ... 59
Figure 17 – Leadership, culture and competence in binary sea. Kjersti H. Eiken ... 67
Figure 18 – Frequency of categories used ... 74
Figure 19 – Frequency of categories used ... 75
Figure 20 – Wordcloud from interview transcripts ... 76
Figure 21 – Wordcloud table from interview transcripts ... 77
Figure 22 – D.I.S.C. model ©Schnell ... 80
List of tables Table 1.1 – Design – the word & concept ... 33
Table 1.2 – Design – the method ... 34
Table 1.2.1 – Design method – Design methodologies ... 38
Table 1.3 - Design – the strategy ... 41
Table 1.4.1 – Design attributes - Information ≠ Insight ... 43
Table 1.4.2 – Design attributes – Share ∞ Test ... 45
Table 1.4.3 – Design attributes – Visualise ... 46
Table 1.4.4 – Design attributes – Interdisciplinarity ... 46
Table 2.1 – Innovation – the word & concept ... 48
Table 2.2 – Innovation – the method ... 51
Table 2.3 – Innovation – Adjacent ... 53
Table 3.1 – Success – the word & concept ... 56
Table 3.2 – Success – Relative success ... 57
Table 3.3 – Success – Empathy, people and planet ... 59
Table 3.4 – Success – If this, then that ... 61
Table 4.1 – Company culture ... 62
Table 4.2 – Company Culture – Change management ... 65
Table of contents
Acknowledgements………...ii
Abstract……….…….iv
List of figures………...v
List of tables……….……...v
1 Introduction ... 1
1.1 Research questions ... 1
1.2 This thesis as a design project ... 2
1.3 Outline of research project ... 3
2 Background ... 4
2.1 History of design as a method ... 4
2.2 The value of design ... 5
2.3 Start-ups ... 6
2.4 When innovation fails ... 7
2.4.1 Nokia ... 7
2.4.2 Kodak ... 8
3 Literature review ... 9
3.1 Design science ... 9
3.1.1 Design Science according to Buckminister Fuller ... 9
3.1.2 Design Science according to Herbert Simon ... 10
3.2 Design – the word and concept ... 11
3.3 Innovation – the word and concept ... 13
3.3.1 Innovation or invention? ... 15
3.4 Technological innovation ... 16
3.5 Success – the word and concept ... 16
3.6 Company culture ... 17
3.6.1 Changing company culture ... 18
4 Methods and Methodologies ... 20
4.1 The Grounded Theory ... 20
4.2 Design Science Research ... 25
4.3 Design Science Research and evaluation methods ... 26
4.4 Ethical considerations ... 28
5 Design Experts ... 29
6 Analysis and results ... 32
6.1 Design ... 32
6.1.1 Design – the word & concept ... 32
6.1.2 Design – the method ... 34
6.1.2.1 Design methodologies ... 37
6.1.3 Design – the strategy ... 41
6.1.4 Design attributes ... 43
6.2 Innovation ... 47
6.2.1 Innovation – the word & concept ... 47
6.2.2 Innovation – the method ... 50
6.2.3 Innovation – Adjacent ... 53
6.3 Success ... 56
6.3.1 Success – the word & concept ... 56
6.3.1.1 Success – Relative Success ... 57
6.3.2 Success – Empathy ... 59
6.3.3 Success – IFTT ... 60
6.4 Company culture ... 62
6.4.1 Company culture ... 62
6.4.2 Company Culture – Change management ... 65
6.5 Overview of main topics, core- and sub-categories. ... 68
6.5.1 Categorisation abbreviations ... 72
6.5.2 Quantification of categories ... 73
6.6 Wordcloud ... 76
7 Artifact ... 78
7.1 D.I.S.C. Guidelines and model ... 78
8 Discussion ... 81
8.1 Methods and Methodologies ... 81
8.1.1 The Grounded Theory ... 81
8.1.2 Quantification of categories ... 81
8.1.3 Design Science Research ... 82
8.2 The three cycles ... 83
8.3 Limitations ... 84
8.4 Answering research questions ... 84
9 Conclusion and further work ... 85
9.1 Conclusion ... 85
9.2 Further work ... 86
Bibliography ... 87
Appendix A – NSD Approval ...90
Appendix B – Informed consent form ...93
Appendix C – Interview guide ... ...95
Appendix D – Interview with Lars Petter Aase ...96
Appendix E – Interview with Anita Steinstad ...101
Appendix F – Interview with Håvard Legreid ...107
Appendix G – Interview with Hege Harreschou and Jens Hauglum ...112
Appendix H – Interview with Kristin Breivik ...118
Appendix I – Interview with Claus Gladyszak ...125
Appendix J – Interview with Tone F.M. Haug ...134
Appendix K – Interview with Kjersti Haukeland Eiken ...140
Appendix L – Interview with Tarald Trønnes ...145
Appendix M – Interview with Eirik Solberg...154
Dictionary ………159