action t lligen to inte in ula s EAs or M ID Vict m , an d nsfor Lindy to tra lari t ,I ki o Koria tool Mik k A ro ca, a r nB Jea i © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433. Internet: www.worldbank.org Some rights reserved. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank .org. ii This FrontEnd Toolkit is about applying Design Thinking to transform new ideas into innovative products, services and businesses with an impact. The front end development of new user and customer-oriented solutions is a key opportunity as well as a significant challenge for organizations and success is built on collaborative approaches. iii Foreword Enhanced connectivity, inexpensive mobile phones, and the rapidly growing use of social media have radically altered the citizen’s behavior everywhere. Increased openness and timely access to information also has the potential to reorganize the delivery of public services. Officials can now engage citizens in design and service improvement by harnessing real time data - collected from sensor webs or crowd -sourced from users – and customize content for various constituencies by language, location, and device. Digitalization is also changing the innovation process from closed and linear to open and iterative providing parallel opportunities for a new breed of coders, start-ups and SMEs. Forward-looking authorities already encourage software developers outside of government to co-create applications in collaboration with citizens and to tap into knowledge generated as well as international networks. Co-creation can reduce solution development costs, generate wider diversity of solutions and help to ensure that user needs and behavior are reflected in the final solution before the launch of service. This paradigm shift provides an opportunity for even the most resource-constrained public authorities to invest in low-cost development of technology-enabled services. Innovation, however, is a social process shaped by culture, habits, convention and routines as much as by technology or rules, laws and regulations. Often new projects fail to achieve the desired impact, and in many cases scarce resources are not used in an optimal manner. This guidebook claims that how one begins to design a new project, often determines whether an intervention succeeds or not. Mapping of all stakeholders and understanding their vested interests is critical knowledge that helps to identify champions and hidden bottlenecks. Engaging with stakeholders at the early stage of design process helps to take all inter- ests into account and build shared value for all partners. Administrators want to learn from each other but approaches and methodologies applied in collaborative processes often still reside as a tacit know-how in the heads of a few practitioners. This Front-End toolkit prepared by the World Bank team together with leading experts, highlights the importance of political economy as a critical factor explaining why projects are working or not. Taking into account the roles played by different stakeholders and their interest in planned interventions will have a critical impact on development efforts and their outcomes. Authors of this guide provide a step-by-step guide to overcome risks by engaging beneficiaries with local stakeholders to explore mutual interests and to build shared value in facilitated workshop sessions. II warmly recommend this guide for every policy-maker, project manager and individual interested in establishing a solid foundation for their project. Jane Treadwell Sheila Jagannathan Practice Manager Lead Learning Specialist Transport & ICT Global Practice Open Learning Campus World Bank World Bank iv Table of Contents Acknowledgments 2 Partners 2 Part 1. Introduction 1.1 About this Toolkit 4 1.2 FrontEnd Innovation 7 1.3 How is this toolkit set-up? 10 Part 2. Starter Pack 2.1 Workshop Starter Pack 14 2.2 Preparing the Workshop 18 2.3 Workshop Canvasses 33 Case Studies 38 Part 3. Workshop Manual 3.1 Workshop Days & Steps 48 3.2 Background 56 Annex I Organizations behind this toolkit 76 Annex II Key Concepts & References 82 1 Acknowledgments This guide is the result of collaboration of several individuals and ble for organizing the workshops while Hallie Appelbaum, Diana Del organization. Jean Barroca, Mikko Koria (Loughborough University) Olmo, Jana El-Horri, Cecilia Paradi-Guilford, and Samhir Vasdev pro- and Ilari Lindy (World Bank) carried out research and writing. The vided technical contribution and documented the experiences. The approach and methodology were developed during three co-cre- content and format was peer-reviewed by Carlos Gerardo Sabatino ation workshops “Strengthening Lebanon’s Mobile Internet Ecosys- Gonzalez, Justine White and Adarsh Desai all from the World Bank. tem” in Beirut, “Innovation Hubs Co-Creation in Gran Conception” in The guide was prepared under the project KE Learning Platform Gran Conception, and “Maadi Park Co-creation Workshop” in Cairo for Open Innovation in Cities benefiting from thoughtful leadership in 2014-2015. A particular thanks goes to Pedro Vidal (Chile) and provided by Sheila Jagannathan, Andrei Tolstopiatenko and Jane Walid Karam (Lebanon) who provided the basis for the case stud- Treadwell. ies to emerge from the co-creation workshops as described in the Finally, the team would like to thank the Ministry for Foreign Affairs guide. The scope, focus and content of the document was discussed, of Finland and Ajuntament de Barcelona for providing support to debated and reviewed in regular feedback sessions with several the projects that made the workshops and also this guide possible. World Bank colleagues. Victor Mulas, Arturo Muente-Kunigami and Eva Clemente-Miranda, all World Bank project leads, were responsi- Partnerships Peer-to-peer learning is a powerful way to share and to replicate bregat), Frank Kresin and Bart Tunnissen (both from Waag Society working solutions. Development partners are willing to learn but too Amsterdam), Claudio Vandi and Nathanaël Sorin Richez (both from often relevant knowledge is kept in the minds of a few spearheading Numa Paris) and Hyung Kyu Lim (NIPA, Seoul) all shared their expe- global practitioners. Encouraged by willingness of selected thought riences with the Bank team and its clients. The content and focus leaders to share their expertise, the World Bank team invited a of this toolkit is very much a result of the thoughtful input provided group of international experts to the workshops. Anna Majo (Urban- by all of them. You can find more information about our partners’ Lab Barcelona), Esteve Almiral (ESADE), Roope Ritvos (Forum Virium organizations that helped to build this kit on Annex I. Helsinki), Jose Antonio Galaso Cerezo (CityLab Cornellá de Llo- Part 1 Introduction 3 1.1 About this Toolkit The World Bank ICT Group and its partner organizations have built and to produce implementable concepts and action plans in a limit- this FrontEnd Toolkit to advise project teams to manage the initial ed time period. The Toolkit helps to establish an idea’s key value to development phase of new services, products and businesses with stakeholders, and supports planning for the creation of high impact concrete tools and processes. The overall objective is to help poli- projects. It assists in defining complexity, cost, delivery, function- cy-makers, project owners, and managers as well as their stakehold- ality, and future upgrade potential of a concept and creates new ers to design and implement projects with real impact. opportunities for partnerships. While there are good ideas everywhere, transforming them into This Toolkit is essentially a collaborative workshop built around great new practices is demanding, and ensuring that they will work series of steps done over 1+2 days. During the first day, the partic- in the real world is a challenge. Often new and innovative projects ipants developed their ideas into concepts and over the next two fail to achieve the desired impact, and in many cases scarce resourc- days refined their concepts into activity plans. The scope of the es are wasted. It is critical to manage well the initial phases of devel- ideas that can be brought to the workshops is wide. You can test oping a successful product, service or business. How one begins the how to turn ideas into practical innovations, address feasibility process of innovation often determines whether an idea evolves into of cutting edge projects or – like we did – define conditions and a a feasible, viable and desirable concept and an action plan. road-map for urban innovation hubs. At every stage the proposals are prototyped and tested and stop-go decisions are made. The aim We believe that success can be achieved by engaging all relevant is weed out ideas that are not viable and select those that have the beneficiaries from the beginning to explore mutual interests and best chance to create tangible value. Bringing together the knowl- shared value in, facilitated workshop sessions. Besides building edge, creativity and experience of a wide range of relevant stake- trust and accountability such an approach can generate a wider holders provides a project with a strong base and a better chance to diversity of solutions and help to ensure that user needs and behav- directly respond to user expectations and needs. iors are properly accounted in the final solution before the launch of innovation. At the heart of this approach is a collaborative process where methodologies such as design thinking are applied to explore 4 Design Thinking Complementary to analytical thinking, Design Thinking is a creative process based on building up ideas and thinking outside of the box through “what if?” thinking. Often the design thinking process is seen to have seven stages: define, research, ideate, prototype, choose, implement, and learn. Within these seven steps, problems can be framed, the right questions can be asked, more ideas can be created, and the best answers can be chosen. The steps aren’t linear; they can occur simultaneously and can be repeated. This FrontEnd Toolkit uses iterative planning processes that include a series of canvas tools to map the key actors, interconnections, insights and value created. 5 6 1.2. Front End Innovation The aim of this toolkit is to help actors develop meaningful Picture 1.1.1 New product. Service & business innovations that offer desirable experiences. These experiences development process should have the potential to permanently change behaviors, provide opportunities for organizations and businesses to succeed, and enable ecosystems to provide value to stakehold- ers. These meaningful innovations must offer improvements to quality of life in societies. Additionally, resources are required to fuel activities, and the application of resources tends to be limited by social constraints. This Toolkit aims to enable communities to work within conditions of (potentially scarce) resources in order to mature their ideas towards tangible and actionable solutions. The Front End of innovation is the very first step in the devel- opment of new products, services and businesses. It is the phase when initial ideas exist, together with notions of strate- gy, some business intelligence, and a set of physical, financial and human resources. Very often the Front End starts when organizations, firms, or individuals realize that they need to do something to change an existing situation – but often they do now know what they should do. Correspondingly the Front End ends when a decision has been made to continue planning for implementation in a structured way, or, alternatively, when further development is discontinued. FIG.1.1.1 FRONT END INNOVATION | Source: Innovation Management Institute, Aalto University 7 The Front End innovation is all about purposefully combining differ- client and user mindsets, needs and expectations. It also involves ent skills, disciplines, and resources with knowledge related to the making sense of the competitive environment, the social and in- local innovation ecosystem to gain insights that inspire and help dividual constraints and enablers that drive the acceptance and shape a new, valuable offering. The process of creating this constel- uptake of new products, services and business models. lation of elements involves understanding emerging opportunities, Why is Front End innovation important? According to research, about 75-90% of final costs for new products cesses. It is the best phase for taking advantage of a wide knowledge (and evidently also services) are determined at the Front End phase of base and of cross-functional participation, and it offers a key opportuni- the innovation agenda, process, and outcome. This phase is often the ty to develop meaningful innovation that has a real impact. most troublesome to come to grips with. Decisions made at this phase This phase therefore requires a different management approach than will impact the entire innovation agenda, process and outcome. Knowl- other phases of the innovation process. The ambiguous nature of the edge is diffuse, and there may be conflicting interests present within the Front End is the key reason to apply Design Thinking methods to make planning teams. sense and create viable alternatives. The design thinking elements are Within this uncertainty, however, participants enjoy a lack of constraints delivered through a workshop. and greater freedom to apply new ideas to different contexts and pro- Front End of innovation & offering When developing new products, services and business models, there and services to be delivered. is a need to align the offering and the business model with the ecosys- While offering great opportunities to innovate, the front-end is also tem and the available resource base. complex due to high uncertainty, ambiguity and the need to experi- The front-end phase has a strategic nature due to key decisions that ment with different alternative solutions. It requires a management need to be made on target customers and markets, value creation, culture that is different from the subsequent phases of the products/ pricing points and technologies used. This stage of the development service/business launch. Very often it is said that front ends do not yet process determines to a great degree the final cost of the products have processes, but one is building a constellation of elements. 8 In the front-end phase oppor- Picture 1.1.2 Nature of the Front End Innovation tunities and ideas are defined and developed into new product and service concepts. At this stage the focus is on creativity and invention, and business intelligence, strategy and competences are central drivers. The critical issue is the setting up of a cross-functional (or multidisciplinary) team, en- gaged in collaborative practic- es using Design Thinking tools and methods. Front-end activities typically include customer, need, value and opportunity identification, idea generation, screening and selection, concept develop- ment and testing, technology verification, business analysis, and project planning. ▶▶ Uncertainty, ambiguity, chaotic nature ▶▶ Confidential processes ▶▶ Central decisions made for the whole de- ▶▶ Links to other processes, internal market- velopment/innovation agenda ing of concepts The expected outcome of the ▶▶ Diffuse knowledge and lack of vision, clear ▶▶ Conflicting interests and orientations front-end is a defined product knowledge ▶▶ Participation and wide knowledge base or service concept, together ▶▶ Freedom of ideas and lack of constraints needed with a development roadmap and a business model that is Source: Innovation Management Institute, Aalto University aligned with the ecosystem. 9 1.3. How is this Toolkit set up? This Toolkit will help you organize a hands-on workshop where you the Workshop. can deal with the Front End phase in a collaborative way, together The FrontEnd Workshop is built around two parts that divides the with all the organizations and individuals that will be involved in the workshop into two sections. During the first day of the workshop, initial phases of a product, service or business development. During participants evolve their ideas into concepts and explore whether the workshop, participants collaborate to solve the front-end chal- they merit further development or not. During the second and third lenges of their own ideas from real life. Multiple actors are needed to days, participants develop the concepts into action plans in order to jointly contribute knowledge, experience, and resources to address decide whether it is feasible to take the next step into more detailed the issues at hand, and to develop further ideas for solving problem. project planning. This Toolkit is organized into three different sections: Each one of the Workshop parts includes four steps: Discovering the The Introduction presents the Toolkit and cases for those in need Ecosystem, Defining the Value Opportunity, Developing Service and of novel approaches to dealing with the early phases of innovation Business Models, and Delivering Decisions. These steps are repeated projects; twice over the three days, with varying content and focus, to move from ideas to action. The Starter Pack, which shares the knowledge and tips for organiz- ing and running a Front End Workshop; Through the two parts and four steps, the workshop moves par- ticipants’ thinking and ideas from the concrete to the abstract and The Workshop Manual, designed to help workshop organizers and then back again in a series of iterations. This is done by observing participants better understand the flow, topics and background to This toolkit & workshop uses a structured 4D (discover, define, develop and deliver) method based on principles of design thinking. 10 Picture 1.1.3 Workshop process and learning about the ecosystems at hand, understanding the value creation, defining the business models elements, and thinking about the next steps. What are the workshop methods? Design thinking is an analytical and creative process that helps participants think outside the box and create products and services based on innova- tive ideas. In the early stages of design thinking, there are no judgments about “wrong” and “right” ideas. This helps eliminate the fear of failure and encourages maximum input and participation in the ideation and prototype phases. The design thinking process is often understood to have seven stages: define, research, ideate, prototype, choose, implement, and learn. Applying these seven steps, participants are able to clearly frame problems, ask the right questions to address them, create ideas, and choose the best solutions. The steps need not be linear; they can occur simultaneously and can even be repeated over and over. To bring ideas to life, activities are needed. Activities are the engines that bring products, services and business models together. This is why the workshop structure, method and approach is built on the idea of learning by doing, where participants build up their solutions in dense teamwork situations, build prototypes and test them. 11 12 Part 2 Starter Pack 13 2.1 Workshop Starter pack 14 The aim of the Starter Pack is to make explicit the steps that need to be taken and the tasks that need to be completed so that the toolkit workshop can have the best possible impact. It is often said that preparation is half of the result, and the key lesson learnt from all of the workshops delivered to date is that the choice of the participants, facilitators, and venue define the quality and scope of the results. Introduction Organizing a Front End Workshop will enable you to connect with mem- This Starter Pack will guide you through the process of organizing a Front bers of the local community concerned with the same problems and End Workshop. We will first present the Workshop structure, followed by willing to take action to solve them. This workshop is an opportunity to guidelines for running the Workshop. develop product, service and business ideas into concepts and action From our accumulated experience, we have extracted a set of guidelines, plans through collaboration with the people around you. tips and recommendations to support you in this mission. Reasons to use the Toolkit Connect with local stakeholders and the will to act, but lack of communication and trust prevents cooperative action. The workshop can be used as a process and a In the frontend phase of project development, it is im- tool for defining common objectives and beginning the collaborative portant to talk with members of the community about process. local problems in order to involve them in the quest for innovative solutions. Collaboration with relevant Understand the context stakeholders is the key to success in this process. In development projects, context is everything. Better understand- Define common objectives ing of the local context from a variety of perspectives is important to the design of solutions that address people’s needs and can lever- Often people share similar views, concerns and age existing initiatives. Often people share similar views, concerns, 15 Embrace complexity Picture 2.1.1 the structure of the workshop We are often faced with very complex problems that have no imme- diately apparent solution. The workshop format can enable you to Day 1: the ideas are taken to the Concept stage tease out the complex issues and make sense of them through the Day 2: the value creation is refined further. collaborative process. Day 3: an action plan is developed To design innovative, impactful solutions, we can divide complex problems into simpler ones to be addressed through planned activ- ities. Think sustainability Sustainability is a key factor to the success of businesses, products, and services. The workshop will help you work towards sustainable business models from the moment you start developing your ideas further. NB: The content and schedule is detailed day by day in Part 3 Workshop Manual 16 What is the structure of the workshop? The workshop is built around two parts: concept ideation and action ness Models, and Delivering Decisions. These steps are repeated planning, which divide the workshop into two sections. During the twice over the three days, with varying content and focus, to move first day of the workshop, participants evolve their ideas into con- from ideas to concepts and then concepts to action. cepts and explore whether they merit further development or not. Through the two parts and fours steps the workshop moves partici- During the second and third days, participants develop the concepts pants’ thinking and ideas from the concrete to the abstract and then into action plans in order to decide whether it is feasible to take the back again in a series of iterations, observing and learning about the next step into more detailed project planning. ecosystems at hand, to understanding the value creation, to defin- Each one of the parts includes four steps: Discovering the Ecosys- ing the business model’s elements and to thinking about the next tem, Defining the Value Opportunity, Developing Service and Busi- steps. Organizing the Workshop It’s now time to start thinking about organizing a Workshop. These sections will help you prepare for and run a successful workshop and plan for follow-up activities. 17 2.2 Preparing the workshop 18 We’ve organized a set of checklists and tips to help you prepare for the workshop. These checklists are split into six different categories of activities: Plan Impact The first and most important step: establish the workshop’s objective and its desired outputs. Contact Outlines all necessary activities for contacting local stakeholders and engaging with them in the FrontEnd Stakeholders Workshop. In connection with the World Bank Community of Practice, you will be able to invite speakers who bring rele- Contact Speakers vant knowledge and experience to the workshop. These Speakers may also help facilitate the workshop and inspire participants with real life examples of achieving impact. Workshop Workshop facilitators are an important component of the FrontEnd Workshop. You will need to select them care- Facilitators fully and work with them closely as you organize the workshop in order to get the most out of each session. Logistics will play a crucial role, from small details such as the preparation of name badges and writing materi- Logistics als, to larger aspects such as venue selection and activity organization. To generate awareness about the workshop within the local community, effective communication is key. Con- Communication sider how to engage with media contacts, social media and press. 19 Set the scene Set the workshop objectives A clear objective for the Workshop is crucial for alignment between ✓ Workshop Checklist stakeholders from the start. The Workshop objective should be both meaningful and compre- ✓ Have you set the workshop objectives? hensible to all stakeholders. The workshop objective responds to the questions: ✓ Are the workshop objectives clear and meaningful? ✓✓ What do we want to achieve through this training? ✓✓ What change do we want to see after the training? ✓ Have you set the workshop outputs? Set the workshop outputs It is important to establish what outputs you aim to achieve with the ✓ Are the workshop outputs aligned with the FrontEnd outputs? Workshop, and ensure they are well aligned with FrontEnd method- ology outputs. Define the outputs and share both outputs and workshop objectives ✓ Have you set the date? with participants. Set the dates ✓ Have you validated the date with your key stakeholders? Set a date before moving on to other workshop preparation activ- ities. Before you set the date, make sure to validate the date with the main stakeholders to be involved. This should be done well in advance to ensure all are able to attend. 20 Logistics Well-organized logistics are important for a workshop to run smoothly, so that all participants can be focused on discussing the topics in a supportive atmosphere. ✓ Room Selection Checklist Venue selection ✓ Have you selected the venue? The venue will affect how well your workshop activities go. You should look for a venue where people can feel at ease and where you can run the activities without too many constraints. The main points to take in ✓ Is there is enough space? consideration are: Space: Confirm that the room has enough space for all participants. ✓ Are there enough chairs? Check to see if there is space on the walls to hang the workshop canvases. Movable tables: The venue should be flexible enough to accommodate ✓ Can you re-arrange the tables if needed? several groups of people. Tables should be movable, allowing people to form different groups. You may need to rearrange tables if organizing a ✓ Is there appropriate lighting? role-playing exercise. Chairs: Does the room have enough chairs? ✓ Are there accommodations for catering near to the room? Lighting: Appropriate light is needed. Select a room with direct daylight. Temperature: Are you able to control the temperature of the room? Is ✓ Can you control room temperature? there air conditioning or fans? Can you open the windows? Catering needs: Is there a venue for coffee breaks and meals near the room? ✓ Is there a video projector and electricity to run it? Supporting staff: Some should be available during the workshop. Audio-visual equipment problems can be easily solved by an experi- ✓ Is there an internet connection? enced AV tech. Electricity and audio-visual equipment: Check to see if the room ✓ Does the venue require any specific transport ar- rangements? has sufficient electric plugs, video projectors and speakers. Is it possible for staff to support you during duration Internet connection: Is there Internet connection available? ✓ of the workshop in case of AV problems or other un- foreseen needs? 21 Arrange for catering Prepare Workshop Materials Water and coffee should be available during the entire duration of the workshop. ✓ Workshop Materials Checklist During morning and afternoon breaks, arrange for something to eat. If your budget permits, consider providing lunch. This is good op- Have you arranged for all the necessary materials? portunity for participants to talk with workshop speakers and with each other. ✓ Workshop duration? Supporting staff can help solve audio visual equipment problems and provide help if speakers and for the les arHave Be sure to establish a plan for all meals ahead of time. ✓ Catering Checklist ✓ Have you prepared the Workshop Pack? Have you hired a catering company? Workshop du- ✓ ration? Supporting staff can help solve audio visual equipment problems and provide help if speakers ✓ Are there enough copies for all participants? and for the les arHave ✓ Have you printed out all workshop canvases? ✓ Have you established a plan for meals? The required materials for the Workshop are minimal, and should be acquired in advance: ✓ Have you agreed to possible adjustments to the agenda during the workshop? ✓✓ Video projector ✓✓ Pens ✓✓ One Flipchart for each ✓✓ Lots of sticky notes participant group ✓✓ Name tags ✓✓ Flipchart paper ✓✓ Markers ✓✓ Blue tack ✓✓ Water ✓✓ Note paper 22 It’s a good idea to prepare a Workshop Pack for each of the partici- ✓✓ Up-to-date agenda pants that contains the following: ✓✓ Speaker biographies ✓✓ Pen Prepare some extra Workshop Packs for non-registered participants ✓✓ Note paper who might arrive without notice. Contact Stakeholders Stakeholder analysis of invitees It is important to identify the relevant individuals to invite in order to ✓ Contact Stakeholders Checklist ensure you have a representative set of stakeholders. Keep in mind it’s not only formal organizations that are active within communities. Ask friends and previously identified stakeholders to refer unaffiliated ✓ Have you done a stakeholder analysis? individuals who are involved in innovative and relevant projects. Should you work in innovation, for example, you could consider ✓ Did you ask your stakeholder to recommend other potential invitees for the workshop? inviting members of developer communities, organizers of developer events, entrepreneurship mentors, accelerators, incubators, members Is your workshop group sufficiently diverse? Do you of co-working spaces and the fab or maker spaces that are becoming increasingly important within urban innovation ecosystems. ✓ have a good balance of ages, genders, professions and types of organizations? Your stakeholder lists should contain a mixed set of the different groups that are involved with the topics to be discussed. To achieve diversity, consider inviting people of different ages, genders, political ✓ Have you distributed the workshop agenda to partici- pants? views, and social and cultural perspectives. From formal organiza- tions, it is always useful to have representatives from public authori- ties, companies, startups, academia, and NGOs. ✓ Have you distributed the workshop pack to partici- pants? 23 Invite stakeholders – Start the conversation By inviting stakeholders to your workshop, you are starting a conver- Tips... sation. By the time you send the first invitation, you should already have a ✓ Validate workshop dates good idea of the workshop objectives, outcomes, dates, registration [[ Ensure that your main stakeholders are available for the selected deadlines, location, and duration. date ] Stakeholders can provide you with relevant information for your ✓ Do stakeholder analysis workshop. In your communication, you have the opportunity to ask about challenges related to the topics of your discussion. [[ Your initial contacts can help you get in touch with other potential invitees working in the same area. Talk with your Speakers main stakeholders about how to make the composition of your workshop group more diverse ] ✓ Appropriate number of participants [[ In order to ensure that the workshop is a manageable size, we Role of the Speakers recommend that you limit the workshop to 30 to 40 participants, Speakers act as sources of knowledge, inspiration, and practical guid- though both larger and smaller groups are possible ] ance for participants. Through their participation, you give local stake- ✓ Send reminder a week before holders the chance to interact with real practitioners that have sur- passed many challenges and gathered lessons learned from their path. [[ Always send a reminder to participants a week before the workshop date, along with the agenda and location information ] Speakers normally collaborate in the groups, supporting the role of the facilitator in each group, by pro-actively contributing to the discussion. ✓ Ask for a participant profiles Community of Practice [[ When participants register for the workshop, ask for details (for example, about their work or experience) that could be useful to The World Bank’s Community of Practice for Open Innovation can workshop organizers ] support you in finding the right speakers for your event. The World Bank has a wide network of partners that are interested and committed in sharing their knowledge and experience with you. 24 Prepare instructions Finally, participants will like to know who are the Speakers that are coming to the event, what is their expertise and experience. Request One of the most relevant aspects in the relationship between Work- all speakers a brief bio and a photo so that you can publish them in shop organizers and invited speakers is to have a good brief where your communication materials. you clarify your expectations towards their participation in the event. Instructions should present the context of the event, the purpose and ✓ Speakers Checklist objectives of the workshop, and if possible, the profiles of participants in the Workshop. More concretely, you’ll need to clarify what you ex- pect from the invited Speakers, their role and the Workshop agenda. ✓ Have you contacted the Community of Practice to get in touch with possible speakers? Preparatory meetings It is important to have one-on-one virtual meetings with all invited speakers to prepare for the Workshop. ✓ Have you selected the speakers? During these meetings, you can go through the instructions and make sure there is alignment and a common understanding towards ✓ Have you prepared instructions for the speakers? all the topics that are related to the Workshop. List of topics for the preparatory meeting: ✓ Have you briefed speakers about the workshop? ✓✓ Explanation of context ✓ Have you booked any necessary hotels or flights for your speakers? ✓✓ Contextualization of the workshop ✓✓ Workshop objectives and required outputs ✓ Have you organized a conference call for speakers and facilitators to discuss the workshop beforehand? ✓✓ Workshop methodology ✓✓ Participant profiles ✓✓ Role of speakers ✓✓ Request profile 25 Facilitators The FrontEnd Workshop heavily relies on the successful facilitation of ▶▶ Participant profiles the sessions. Having a team of facilitators that is familiar with the work- ▶▶ Speaker profiles shop objectives, the context and the methodology is vital to do so. ✓✓ Logistics Role of the Facilitators ▶▶ Workshop materials Facilitators play a crucial role in the FrontEnd Workshop. You rely on ▶▶ Room organization and arrangements them to have a good ambiance, to get the best out of people’s mind in a comfortable environment, to have the Workshop as a kick-off milestone ▶▶ Constraints in the Agenda due to logistics (meals, coffee breaks…) of something big you want to build with your stakeholders’ community. Select the Facilitators Preparatory Meetings At this stage, you should have answers to the following questions: Like the Speakers, Facilitators will need to have a set of preparatory ✓✓ Who will lead the training? meetings where you clarify aspects related to Workshop organiza- ✓✓ Do you need one person or several? tion, methodology, outputs and even the flow of the activities. ✓✓ Do they have the background information and skills required? Before the Workshop, it is important that you discuss with your facil- itators’ team the following aspects: ✓ Contact Facilitators Checklist List of topics for the preparatory meeting ✓✓ Context and Objectives ✓ Have you contacted the Community of Practice to get in touch with possible speakers? ▶▶ Explanation of context ▶▶ Contextualization of the workshop ✓ Have you selected the speakers? ▶▶ Workshop objectives and required outputs ✓ Have you prepared instructions for the speakers? ✓✓ Methodology and Agenda ▶▶ Workshop methodology ✓ Have you briefed speakers about the workshop? ▶▶ Time management ✓ Have you booked any necessary hotels or flights for your speakers? ▶▶ Agenda ✓✓ Participant Profiles ✓ Have you organized a conference call for speakers and facilitators to discuss the workshop beforehand? 26 Communications Communicating the workshop properly to the community is import- ✓✓ Contact details for venues / hosts ant for spreading awareness of your activities and expanding the list This Welcome Pack will need to be sent to participants in advance. of potential participants for your activities. Arrange for photography and video coverage Make an arrangement with a photographer. Consider using a local member of staff rather than an official photographer to minimize ✓ Communication Checklist costs. Any media materials produced from the Workshop will be useful ✓ Have you hired the photographer? going forward with your projects. Remember to document all workshop results and take photos of ✓ Have you planned to take photos of all canvases, and videos of all workshop discussions? all canvases. If possible, take videos of stakeholder discussions to review when you summarize them in the workshop report. ✓ Have you prepared the Welcome Pack? Prepare Workshop Communication Materials There are different communication materials you will need to pre- ✓ Have you prepared a workshop website? pare for the workshop. A Welcome Pack for participants with: ✓ Have you created a social networks group? ✓✓ Welcoming words about the Workshop ▶▶ Background and Context ✓ Have you established your Twitter hash-tag? ▶▶ Workshop objectives ✓ Have you prepared the press release? ▶▶ Workshop outputs ✓✓ Agenda ✓ Have you shared the press release with key stakehold- ers? ✓✓ Profiles of Speakers ✓✓ Up-to-date logistical information ✓ Have you sent it to the press? ▶▶ Maps for getting to the venue 27 Prepare workshop website You will need to share all workshop presentations and probably most videos and photos from the workshop with participants. Before the workshop, it is a good idea to set up a website where peo- ple can register, check the updated agenda, and speaker profiles. Prepare a simple website for that. Create social networks presence People will collaborate both during and after the workshop. A good way of staying looped in is through the creation of a social network group, such as LinkedIn or Facebook. Prepare a Twitter tag to raise awareness about the workshop and workshop activities. Invite media If you are aiming at publicizing your event, the best way is to invite the media. Prepare draft press releases and share them with participants, with your own media contacts or the contacts of other organizers. Consider arranging speaker and participant interviews. This is espe- cially relevant if you are inviting political representatives. 28 Run the workshop 7 tips for a successful workshop facilitation 1. Strive for stakeholder diversity. 4. Set the scene and be clear about your objectives. An ideal workshop to as diverse as possible, bringing people with differ- From the start, you need to be clear about the workshop’s objectives ent experiences into the discussion. It is through this discussion that the in order to create a collaborative environment where people work to idea generation capabilities of your group will be enriched. solve common problems, or achieve common goals. FrontEnd Innovation is about considering what you cannot see for your- 5. Try to achieve concrete commitments. self. Stakeholder diversity is crucial for the success of your workshop. You don’t want a workshop with lots of discussion but little fol- 2. Collaboration comes after trust. low-up action. Aim for concrete commitments for the agreed-upon When participants meet for the first time, it is normal that at first they next steps; these could be small but relevant actions that sparks may not feel comfortable sharing their views. Do not be surprised if collaboration among stakeholders and supports the innovation eco- someone adheres to a formal perspective (such as the agenda of their system you want to grow around your initiative. organization, or even that of their status within a hierarchy). 6. Learn and adapt. You may need to break the ice to create a trusting environment There are no rules set in stone for what tools and techniques you where people feel comfortable voicing their opinions, and are open must use or how to use them. to problem solving in different ways. Each group will be different, each facilitator is different, and the 3. Listen first, collaborate after. context for your initiative will always also be different. Give people space to voice their opinions and share the activities Take some time during breaks for discussion with your team, and adapt they’re involved in. In this initial ‘listening’ phase you will receive the workshop agenda and structure as needed to achieve the best re- input that will help you to manage your group to produce more sults. meaningful results. 7. Have fun! 29 Follow up Evaluation survey We have adopted the following structure for the report: We can only improve what we can measure. To help established met- ✓✓ Background and context rics for the workshop experience, we’ve prepared an evaluation survey ✓✓ Workshop Structure for requesting feedback from participants about Workshop Structure, Organization, Speakers and Logistics. ✓✓ Workshop Results You may choose to share the Evaluation Survey during the last work- ✓✓ Recommendations shop session, or send out the survey to participants the week following. Background and context: Presents the local context as well as its main Share Participant Contacts objectives and desired outputs. This section may also contain a short in- troduction that gives background on the need for a co-design workshop. We have found that FrontEnd Workshop participants may work in very similar areas within the same city or even within the same organiza- Workshop Structure: Presents the workshop agenda, the organiza- tion, but often meet each other for the first time at the workshop. tion of each session, and participant profiles. It is important to distribute participant contacts amongst all partici- Workshop Results: Summarizes workshop results. Presents the pants in order to support the growth of the Innovation Ecosystem. outputs of each session through the canvases and discussion sum- maries. This section clearly highlights the concrete outputs that the Prepare the Workshop Report workshop sought to produce. The Workshop Report is an important output that will enhance Recommendations: These could be in the form of lessons learned the probability of concrete follow-up actions by participants on for future workshops or could summarize main points and objec- agreed-upon next steps. tives achieved through the workshop’s discussions. The Workshop Report shares the results of the collaborative work Send results to participants amongst participants and contains a brief description of the work- shop activities. Collaboration is vital and you can only occur where there is trust. Af- ter you have written the report, it is important that it be shared with the workshop participants. Circulate it for comments and discussion for a period prior to releasing the final version. 30 Gantt Chart We outline the activity schedule in the Gantt Chart below. It provides a time-based view of the FrontEnd Workshop activities. This chart represents the minimum amount of time needed to organize a workshop, however, depending on your organization’s proce- dures, you may choose to start the preparation process earlier. Week -4 Week -3 Week -2 Week -1 WS Week Week +1 Week +2 Workshop preparation Plan Impact Define workshop topics Define workshop outputs Logistics Venue selection Materials purchase Organize catering Contact Stakeholders Review stakeholder lists for possible participants Invite stakeholders Send Welcome Pack with agenda to stakeholders Contact Speakers Contact CoP to discuss possible speakers Invite speakers Send Welcome Pack to speakers Organize travel arrangements 31 Gantt Chart Week -4 Week -3 Week -2 Week -1 WS Week Week +1 Week +2 Hold audio conferences to brief speakers Contact Facilitators Define required competencies Hire facilitators Brief facilitators Hold audio conferences between organizers, facilitators and speakers Communications Hire photography and video coverage Prepare Workshop Communication Materials Prepare workshop website Create social networks presence Invite media Workshop Week Pre-event venue visit Confirm all materials are ready Confirm attendance of registered participants Share photos and quotes on-line Workshop results Send survey to participants Share participant contacts Prepare workshop report Validate workshop report with stakeholders 32 2.3 Workshop Canvases 33 In this section we have the canvases that are used over the three days in the workshop. You will need to print the workshop canvases to at least A1 size, at least one copy of each canvas for each participant group. We advise you to print at least one extra canvas in case you want to split a group in two or do an additional exercise. FIG. 2.2.1 THE ALIGNMENT CANVAS Partners Offering Customers Activities Value Revenue Human Capital Markets Finance Support Culture Policy 34 FIG. 2.2.2 THE ECOSYSTEM CANVAS FIG. 2.2.3 THE VALUE CANVAS ECONOMY PSYCHOLOGY SOCIOLOGY ECOLOGY CULTURE MARKETS • Is the ecosystem inward - outward • Are players capable of network- looking? ing inside and outside? • How do the players behave inside the • What kind of customers and Meaningful Livability of ecosystem? SOCIETY Wealth Wellbeing consumers exist? life environment • How does the ecosystem react to • Are the markets open - closed? disruptive innovation? Shared Reciprocity in SOCIETY Stability Sustainability Drivers networks POLICY HUMAN CAPITAL • Are there feedback loops – does the • What kind of human resources exist in the ecosystem? Social Eco-effective- government listen? ORGANIZATION Profit Core values • How do the educational institu- responsibility ness • What kind of leadership is the govern- ment offering? tions support the ecosystem? • How do policies support developing • How much are new ideas and new ideas? entrepreneurship encouraged? Value for Belonging USER Happiness Eco-footprint money Source: den Ouden 2011 SUPPORTS FINANCE • How developed is the infrastructure of • How is the government support- the ecosystem? ing the ecosystem? • Are there any support professions • Are new ways of financing en- available? abled? • Do supporting non-governmental • How easy is it to fund emerging institutions exists? services / business ideas? 35 FIG. 2.2.4 THE SERVICE & BUSINESS MODEL CANVAS OFFERING What is the final product / service that is offered to the clients? KEY PARTNERS KEY RESOURCES VALUE RELATIONSHIPS CUSTOMERS Who are the key PROPOSITION What type of What key resources do For whom are we partners and suppliers? our value proposition What value do we deliver to relationship we want creating the value? requires? the customers? establish with clients? Who are the most Which our customers’ important clients? problems are we helping to solve? KEY ACTIVITIES CHANNELS What key activities do How do we want to we need to do? reach our clients? What are the service touch-points? COST STRUCTURE REVENUE STREAMS What are the most important costs in Where does revenue come from and what are the our service / business model most important ones? How sustainable are they? Source: BusinessModelGeneration.com 36 FIG. 2.2.5 THE NEXT STEPS CANVAS When? Who Does And Key-Activities Verify It Has Been Accomplished? 2015 2016 2017 This canvas will help you organize the activities needed to implement your idea. What are the key activities that are needed? When do we need to implement them? How can we verify that each step has been accomplished? 37 Case Studies 38 Over the last two years, we have used this method to develop innovation activities in Chile, Finland, Lebanon, Spain and Egypt, among other locations. In Beirut, Lebanon, the aim was to establish a set of principles and the development of an action plan for a Mobile Innovation Hub. In Gran Concepción, Chile, the objective was to establish the collaborative foundation for a local sustainable Urban Innovation Hub. In Cairo, Egypt, the aim was to re-design a technology park to include an innovation hub. Below we will provide short case studies of what was done in Beirut, Gran Concepción and Cairo. 39 Case 1: Mobile Innovation Hub, Beirut, Lebanon Context and purpose Objectives The Ministry of Telecommunication of Lebanon is currently implementing The workshop had three main objectives: a World Bank-funded project that aims to promote a Mobile Internet Eco- ✓✓ To build consensus among stakeholders for the model and activi- system at the national level. In this project, the World Bank is introducing ties of the proposed MiHub, and to prepare for its establishment. a new approach to the development of ICT skills and entrepreneurship, to be implemented by the Lebanese Ministry of Telecommunications. ✓✓ To co-create and define actions to strengthen the Mobile Internet Ecosystem, and to jointly define MiHub’s role and organization. The Mobile Internet Ecosystem project will implement open techno- logical and crowdsourcing mechanisms in order to spur innovation ✓✓ To brainstorm a year of MiHub innovation activities in support of and entrepreneurship, and to boost skill and talent creation in sup- job growth and competitiveness. port of economic growth in Lebanon. The project will focus initially Challenge on the mobile Internet ecosystem (mobile apps), and will involve innovation stakeholders (e.g., universities, industry clusters, start- The workshop’s main challenge was to create a MiHub concept that ups, microenterprises, incubators, angel investors, venture capital- would support technology startups and entrepreneurs in the cre- ists, and government). It will provide collaboration mechanisms to ation of tangible value in terms of jobs and growth. This meant that enhance the effects of open innovation and crowdsourcing. the concept was required to create value at all levels of the Mobile Internet Ecosystem. As part of the Mobile Internet Ecosystem project, the World Bank or- ganized a workshop with Lebanese innovation stakeholders for the purpose of co-designing MiHub, the Mobile Innovation Hub. 40 Outputs better ideas, allow for testing of ideas, and accelerate the creation of new businesses. MiHub aims to promote a culture of collaboration The team established three important outputs for the activity: among local stakeholders through the promotion of shared work. ✓✓ The principles of a sustainable business model for MiHub Another important output of the workshop was a concept for the ✓✓ An institutional arrangement for MiHub Mobile Innovation Hub comprised of three main components: ✓✓ A set of ten activities to be undertaken during the first year ✓✓ A Dissemination component to create general awareness within Lebanese society regarding the importance of entrepreneurship Results and of the opportunities created by ICT and the Internet. The result of this exercise was the creation of a business model that ✓✓ A second component, called Idea Factory, focused on the empow- combined all three of the components developed during the work- erment of the local entrepreneurship and innovation communi- shop’s activities. Under the business model developed, MiHub will ties through the promotion of events that foster the creation of have two value proposition streams: new business ideas. ✓✓ To increase Lebanon’s competitiveness through transformation of ✓✓ A third and final component, called The Lab, which will allow ideas into tangible value entrepreneurs but also future entrepreneurs, startups and com- ✓✓ To generate awareness of 21st century skills in schools, fostering panies to prototype business and innovation ideas. opportunities for children to create a better future. At the end of the workshop, participants agreed on a set of actions MiHub activities were designed to foster the creation of more and for initiating the creation of MiHub. 41 Case 2: Urban Innovation Hub, Concepcion, Chile Context and purpose Objectives A partnership between the World Bank and the Ministry of The objective of the workshop was to co-create ideas for Transport and Communications of Chile has implemented an innovation hub in Gran Concepción that will serve to a project in Gran Concepción that aims to apply innovation strengthen, develop, and provide sustainability for the methodologies to find technological solutions to problems emerging innovation ecosystem in the City. in municipal services, and in turn to serve as the pilot for a The Hub will also address challenges in the Gran Concepción Smart City model in Chile. metropolitan area through collaborative open innovation Smart City Gran Concepción was structured to use mobile processes among the organizations that constitute the local applications co-designed by local and municipal transpor- innovation ecosystem. tation officials to resolve daily technical challenges. Partici- The workshop had three main objectives: pants aim to collectively develop a vision for the future and a roadmap for mobility in Gran Concepción that involves local ✓✓ To co-create and define amongst participants the main and municipal government, citizens, the private sector, and principles for the innovation hub. civil society. They will organize a co-creation citizen engage- ✓✓ To establish the composition, roles and method of gover- ment competition to develop solutions for the city’s trans- nance for the innovation hub. port challenges, such as the improvement of travel behavior and a better public transport experience. ✓✓ To propose action points for its first year of activities. Finally, they aim to create an urban innovation hub where Outputs citizens and other local actors can work collaboratively to Three outputs for the activity were established: address local problems. ✓✓ Principles for a sustainable business model, The co-design workshop was organized with the aim of co-creating the urban innovation hub for the Gran Concepción ✓✓ An institutional arrangement for the innovation hub, metropolitan area. ✓✓ A set of ten activities to be undertaken with the hub’s first year. 42 The Challenge Results Participants were challenged to create a concept that would gener- The most important result was a public presentation of the Innovation ate tangible value for the city of Gran Concepción through the devel- Hub concept to the community, demonstrating their commitment to opment of innovative solutions to the city’s challenges. The design achieving concrete results. The workshop and presentation created new for the Innovation Hub needed to create value for users and clients, collaborative relationships between the city’s innovation stakeholders, for the organization itself, for the local innovation ecosystem, and laying the groundwork for successful upcoming initiatives. for society as a whole. During the workshop, four possible sustainable business models for the Innovation Hub were considered, each with its own institutional ar- rangement possibilities. Workshop participants also agreed to plan and implement a set of ten activities. 43 Case 3: Reinventing Tech Park, Cairo, Egypt Context and purpose and functions that leverage a network of stakeholders, includ- ing government, private sector, academia, and the ever-grow- The Government of Egypt through the Information Technology ing community of local entrepreneurs and innovators. Industry Development Association (ITIDA) is developing the business environment around Information and Communica- Challenge tion Technology (ICT) in order to actively capture the benefits The challenge at Maadi Technology Park was how to transform of current potential. One method being used is the develop- the current real estate and business-driven Technology Park ment of science park structures and the promotion of co-locat- into an innovation hub that adds value through product, ser- ed industrial agglomerations of ICT actors. One such initiative vice and business development. This required the introduction is the Maadi Technology Park, located in Cairo. It was initially of new types of activities and consideration of which products, developed to support global outsourcing businesses, but will services, and business models the park wished to support. It be extended to house ICT innovation clusters. The initial sec- also meant that Maadi Technology Park needed to rethink its tion of the park opened in 2010, and major local and global own business model and offerings for future clients. players in the outsourcing industry are located on site. The challenges lay in the areas of building infrastructure, ser- The World Bank together with ITIDA organized a workshop vices offered, and community support. with Egyptian innovation stakeholders with the purpose of co-designing a development strategy for an Innovation Hub Results and Ecosystem in Maadi Technology Park. The work done in Cairo yielded in preliminary understanding Objectives and Outputs and agreement amongst participants in six different areas each contributing to the success of the hub and ecosystem The main objectives of the workshop were to examine the around it. Community-building in the Ecosystem, Foster- wider ecosystem within the Maadi Technology Park and to ing Collaboration in the Ecosystem, Spaces for Curated and develop a proposal for the Innovation Hub initiative (output). Emerging Activities, Support Services for the Hub and Ecosys- The Innovation Hub initiative would complement existing tem, Promoting the Hub and Ecosystem, Governance of Hubs Technology Park activities and become a space where inno- and Ecosystems. vation throughout Cairo could be fostered through activities 44 45 46 Part 3 Workshop Manual 47 3.1 Workshop Days & Steps 48 This section gives the reader the background for the practical steps that need to be taken to deliver the workshop. The first section shows the steps to be taken in each workshop day. The first day takes the ideas to concepts, the second day moves from concepts into value proposals, and the third day develops the value proposals into an action plan. The Workshop Steps 8 Sessions in 3 days ✓✓ Discovering the Ecosystem ✓✓ Mapping th Ecosystem ✓✓ Defining the Value Proposal ✓✓ Defining the Value Opportunity ✓✓ Developing the Service/Business ✓✓ Developing the Model ✓✓ Delivering the Next Steps 49 DAY 1 with an audience using low-resolution prototyping. 6. Wrap-Up – Determine if the concept is suitable, and decide whether to continue on to next stages, or to revise concepts further. IDEA TO CONCEPT Day 1 Fact Sheet The 1st day is used to explore whether presented ideas have poten- Title IDEA TO CONCEPT tial to create tangible value. The workshop introduces 4D (discover, define, develop, deliver) development methodology as a tool for application to front-end development of new products, services, Decide to continue with the IDEA and business models. Participants apply the methodology to ideas Objective development work, revise it, or under consideration and decide by the end of the 1st day whether discontinue the process to move on to the next stages of project planning, to discard any unworkable ideas, or to continue with revision. Canvases Used Alignment canvas The 1st day of the workshop is divided into six steps: 1. Introduction - Pitch the idea(s), team up and decide which ideas Document the process through the use merit further development. of the single Alignment Canvas and 2. Discover Ecosystem - Using the 6x ecosystem model, identify Deliverable photo documentation of the process and issues & actors affecting the novelty of an idea (+/- for impact). prototypes 3. Define Value Opportunity – Using the Benefit List, define value opportunity to be created for users, businesses, ecosystem & society. 4. Develop Business/Service Idea – Identify Business Model elements using Customers, Partners, Activities, and Revenue. 5. Deliver Concept – Demonstrate how the idea works and test it 50 51 DAY 2 4. Wrap-Up – See if the value is clear and tangible, and decide to revise the idea or to continue on to project development. Day 2 Fact Sheet Title CONCEPT TO VALUE PROPOSAL CONCEPT TO VALUE Decide whether to continue with the IDEA Objective PROPOSAL or revise it through understanding the val- ue potential. Mapping the ecosystem The workshop’s 2nd day aims to identify the value that an idea can Activities Defining value proposition create and on what levels it creates value, triangulating between understanding of the ecosystem and value potential of the original Ecosystem Canvas idea. The objective is to assess an idea’s potential to create tangible Canvases Used Value Canvas value and to decide whether to continue onto the next stage of proj- ect planning or to revise the idea further. Document ecosystem analysis and value Day 2 of the workshop is divided into four steps: Deliverable thinking through the Ecosystem and Value 1. Introduction - Review the work done in the previous sessions canvases. and introduce the content of the day. 2. Mapping the Ecosystem - Examine strengths, weaknesses, opportunities and threats for each of the six elements. 3. Define Value - Using the Benefit List, update an idea’s value definition. Cross-reference the Benefit List, and develop the value definition for users, business, ecosystems and society as a whole. Transform the identified value into a value proposition for the business / service idea. 52 53 DAY 3 an audience. Using the Next Steps Canvas, map out the key activities, steps to be taken, time lines and responsible parties. 4. Wrap-Up - Determine if the activity plan is feasible, and decide whether to move on to the Planning Phase or to continue with revision. VALUE PROPOSAL Day 3 Fact Sheet TO ACTION Title VALUE PROPOSAL TO ACTION Decide to either continue IDEA planning or Objective revise/discontinue... Workshop Day 3 is used to decide whether to continue/revise/dis- continue the idea’s development through an examination of the • Develop Business Model business models and activities needed for implementation. • Role-playing exercises and Lego exer- Activities cises During Day 3, the group will determine if an overall idea is viable, what the different steps of development would be, what the idea’s • Agree on Next Steps potential is, and how to apply the development method to the transformation of ideas into business or service proposals. • Business Model Canvas Canvases Used • Next Step Canvas Day 3 is divided into four steps: 1. Introduction - Review work done in the previous sessions and introduce the content of the day. Document the Business Model develop- 2. Develop Business/Service Model - Using the Business Model Outcomes ment and the next steps through the Busi- ness Model and Next Steps canvases. Canvas, identify Customers, Value Proposition, Channels and Relationships. Further identify Partners, Resources and Activities, Revenue and Costs. 3. Deliver Next Steps - Using low/medium resolution prototyping, demonstrate how the iterated idea works and test it with 54 55 3.2 Background 56 FIG. 3.2.1 METHOD The subsequent sections form the theoretical backbone of the method developed. This background reading is organized as follows: ✓✓ Discovering Innovation Ecosystems provides an overall view on the identification and modeling of innovation ecosystems, ✓✓ Defining Value Opportunity offers an overall view on identifying opportunities, ✓✓ Developing Service and Business aims to provide in- sights to the initial phase of the business modeling and lastly, ✓✓ Delivering for the Real World provides an overall view of and prototyping and testing of the concepts. 57 Discovering Innovation Ecosystems insights that cannot be achieved through any other market, prod- uct, or service research. When opportunities for public domain Before starting, it is necessary to recap the definition of innovation. thinking and crowdsourcing are used, bottom-up insights can be In any definition, there are three main elements: the new, the useful achieved even more comprehensibly. Firms have recognized this, and the success. The new can be new to the world or new to the cir- but established organizations often have a difficult time to reconfig- cumstance. Innovation is always based on need. Success can imply ure their ways of working to cater for the user views. It is often the commercial success but also widely diffused new organizational start-ups that take the lead in this, although it has been observed configurations or reconfigured assets. The key idea is that new ideas that they, too, are susceptible to “seeing only their own navel” and need to diffuse widely and that may happen through administrative ignoring users. practices or through commercial success, and of course, many other ways, too. Technology plays an important role, and social accep- When users are dropped into the picture, the triple helix moves into tance needs to underpin all innovations. a different configuration (sometimes called the quadruple helix), where multiple way collaboration becomes the way in which in- In their book, Design in Business (2002), Margaret Bruce and John novation is enabled. While the innovation systems tends to be a Bessant take an integrated approach to design, creativity, and top-down structure, engaging users illustrates the basic tendency to business, assuming they are core business processes as opposed move away from top-down innovation systems into bottom-up AND to peripheral or specialist activities. They define innovation as the top-down innovation ecosystems. In terms of new product, service successful application of new ideas in practice in the form of new or and business development the key issue is the fact that users may improved products, services, or processes. Creativity, on the other not have the common tools needed for collaboration with the rest of hand, is the ability to combine ideas into new ways to solve prob- the components. This is where the other parties must facilitate the lems and exploit opportunities. Their key message is to say that engagement of the users. This is a major challenge. design is the purposeful application of creativity throughout the process of innovation. The changing nature of business User and Innovation ecosystems The conventional industry and dominant model of today’s business world (television, Encyclopedia Britannica, education systems, Starting from the early Von Hippel’s work (Von Hippel 1988) on lead industry, services) is sometimes called “pipe business”, where firms users in the 80’s, innovations can be derived from the interaction create products & services and then push them out and sell them. In between users and New Product / New Service Development (NPD/ this case the value is created upstream and consumed downstream, NSD) and business developers. The deep interaction itself creates 58 and the business flow is linear, often one way. One could say that FIG. 3.2.2 INNOVATION ECOSYSTEMS the users interact with the software that is created, and our product is valuable by itself. This way of thinking has a lot to do with sepa- rate products and services. The new kid on the block, business & technology platforms have created a massive shift of business caused by the internet (e.g. YouTube, Wikipedia, Airbnb). These “platform businesses” are very close to product and service systems (PSSs), where users create and consume value. The business models are very different from pipes, as the PSSs need to be built up with both producers and consum- ers in mind. The idea is that users interact with each other, using software the business has created. The product has no value unless users use it. The key difference between pipe and platform business is linked to the monetization strategies, which are distinct. With pipe business, monetization is straightforward. One calculates the costs of running a unit through a pipe all the way to the end con- sumer and ensures that: Price = Cost + Desired Margin. The consum- ers are charged the value that is created. With platforms, the mon- etization is not straightforward. Producers and consumers transact (e.g. Airbnb, SitterCity, Etsy): one or both sides pay the platform a transaction fee. Producers create content to engage consumers (e.g. YouTube), and the platform may monetize consumer attention (through advertising). In some cases, platforms may license intellec- tual property usage. On platforms, at least one side is usually subsi- dized to participate on the platform. Producers may even be incen- tivized to participate. The key question is to figure out who creates value and who one charges for it. 59 FIG. 3.2.3 BUSINESS NETWORKS fosters alliances, joint ventures where knowledge and resources are shared to a high degree. The projectification of society and business also drives this tendency. When one moves from a single business development project into an ecosystem with many firms and many projects, there are few direct control tools available. Mostly one can create added value and opportunities thorough the promotion of the collaborative opportunities, through which the actors learn how to work with each other. Ecosystem models Ecosystem models originate from the natural sciences, and have many similarities with biological ecosystems. They are dynamic in nature and made up of interconnected organisms that operate in a shared environment. They evolve, grow and contract, and can be destroyed if the environment suffers drastic changes. Iansiti and Levien (2004) note that the analogy needs careful consideration: In business ecosystems, actors are intelligent and able to plan and understand the dynamics of the system. The goal of business ecosystems is to deliver innovations (i.e. ex- pansive growth), whereas natural ecosystems are only aiming at Source: Artto et al. 2005 survival. They also focus on three critical success factors: produc- tivity (transformation, efficiency), robustness (ability to survive, resilience) and niche creation (ability to create opportunities). They identify four different roles for actors: keystone organizations that act as enablers for the system; niche players that make up the mass of the actors; and hub landlords (extracting as much value from the Business networks (like the project based networks illustrated) are ecosystem as possible) or hub dominators (that integrate vertically both complex and offer little opportunity for direct control. This or horizontally in the system). 60 Innovation ecosystems exist on multiple levels. On the regional lev- FIG. 3.2.4 REGIONAL ECOSYSTEMS el, the systemic view taken into account the roles of the public sec- tor, public private partnerships, and purely private initiatives. Each has a role to play, and the multiple levels are highly interdependent. The concept of the business ecosystems is a fairly recent idea, and Moore introduced the idea in 1993 as an economic community of interacting suppliers, competitors, customers, producers and oth- er stakeholders (Moore 1993). Later on in 1998 he added financial parties, trade associations, standardization bodies, labor unions, governmental and quasi-governmental institutions into the equa- tion. He emphasized the decentralized nature of decision-making and self-organizing. He also thought that there were leadership companies who influence the evolution of ecosystems. Moore also introduced the idea of stages in business models: pioneering, expan- sion, authority and renewal. The ecosystem renews itself, unless it dies in the renewal stage. Based on the works of Isenberg (2010) the model shown has been adopted as the basic visual approach to understand ecosystems. The model has an external perspective, whereas Moore’s model is more internal. There are six main domains: enabling policy and leadership, availability of appropriate finance, conductive culture, range of institutional and infrastructural supports, quality of human capital and characteristic of markets. These domains are divided further into 12 categories, which represent key components of a Source: Hubconcepts, 2011 healthy ecosystem. When operating in ecosystems, businesses must decide if they are a keystone or niche “player” and then formulate strategies appropri- ate to that role and build up the foundations of sustainable perfor- mance in a business ecosystem (Iansiti & Levien, 2004). 61 Fig. 3.2.5. Entrepreneurial and innovation Ecosystems 62 Source: Isenberg, Daniel and Babson Global 2010 Keystone companies (e.g. Microsoft, Wal-Mart, Dell, and eBay) create open innovation, licensing, accessing customers. Ideally, these part- high-value, sharable assets; leverage direct customer connections; nerships help to create scalable business models and to enhance create and manage physical and information hubs; support uniform the robustness/resilience of the business. information standards; create, package, and share state-of-the-art Many governments try to build up ecosystems, but they cannot do tools and building blocks for innovation; establish and maintain it on their own. Copying models is also very difficult, as ecosystems performance standards; build or acquire financial assets for operating tend to be very much time and place specific. The key issues lie with leverage; reduce uncertainty by centralizing and coordinating com- promoting collaboration across the ecosystem. The system is es- munication, and reduce complexity by providing powerful platforms. sentially both top-down and bottom-up. Thus a key challenge is to They share value within their respective ecosystems with the other create integration between the two. players. Businesses that wish to become keystone players can resort If we think that local actors have the best local knowledge, we have to two strategies: the can strive to act as “hub landlords”, extracting (at least) three main roles that need to be taken if ecosystems are to as much value as possible from an ecosystem without integration; or be viable: integrating (bring parties together to collaborate); trans- they can try to become “hub dominators” (e.g. Apple) and control an lating between the parties is essential, as the knowledge and under- ecosystem. Most organizations will operate as niche players with dif- standing is highly asymmetric. And finally, expanding the capabil- ferentiated specialized capabilities, being dependent on other actors; ities of the local actors to operate with the top-down parties is an a good niche strategy requires analyzing the ecosystem and mapping essential element in making global business grow from local drives. out the stakeholders and their characteristics. All organizations need to take an active role in nourishing that ecosystem and support inte- Key issues to consider when building up innovation ecosystems gration, innovation, and adaptation within their ecosystem. Studies have found common elements in the systemic build-up of Roles in Innovation Hubs innovation ecosystems (adapted Koria from Honkapirtti 2014): When looking at the complexity of the actors in the ecosystem, the ✓✓ There is a need to find the champions: Identify the community partnership issues often emerge as a key challenge. The aims could leaders and activists receptive to collaboration and entrepreneur- be summed up in terms of optimization and economies of scale, ship. where typically companies do not wish to own or do all activities by ✓✓ And also to find the Success Stories: In an ecosystem existing suc- themselves. The try to reduce costs through outsourcing and shar- cess stories have a great impact as roles models. ing infrastructure. The reduction of risk and uncertainty through partnerships is important in competitive environments. Firms also ✓✓ One must allow access: Invite the community members to enter, acquire new resources and are able to undertake new activities, to attend events and workshops, exchange knowledge and to through extending capabilities through the resources of partners, scout for opportunities together. 63 ✓✓ There is a need to listen & have dialogue: Aim to understand the inter- fer entrepreneurship support and orientation for the local inhabi- actions and real problems of the community through active listening. tants and community interested in becoming entrepreneurs. ✓✓ Long-term gain is often built up from a series of small wins: ✓✓ And finally to commit long term: A long-term orientation is need- Understand ‘our limitations and capacities’ and start with small, ed to gain trust and to realistically expect changes and impact to well-defined projects and prototyping, developing the collabora- take place. Relationship building and project preparations can tion step-by-step. take a long time. ✓✓ Attention must be given to relevance & respect: If starting new Stakeholders in ecosystems initiatives together, address the problems that are most pressing As the last key issue in ecosystems, stakeholder analysis becomes issues from the community’s point of view. a very important task; knowing who is in the system is not enough, ✓✓ There is a need to co-design and co-develop: Develop solutions to we also need to understand their position of power to influence our the defined problems together. activities and whether they are interested in doing so. The power, le- ✓✓ And to manage the expectations: Highlight and voice to all parties that gitimacy and urgency analysis gives a good indication of what issues the risk is high, and failure can happen, but learning will happen, too. and who has to address out of the multiple demands that are made towards a starting entrepreneur. ✓✓ Furthermore, it is necessary to develop skills and capabilities: Of- Defining the value opportunity Towards intangible value The drive to integrate products and services also drives up the intan- gible value of companies. In the network business much of the value In the world of tomorrow intelligent technologies are seen to cre- lies in the connections that one is able to control and manage to ate the key opportunities and that most of this immaterial value is one’s benefit. The value chain becomes a value network. The down- found in the networks of actors. There is clear drive from tangible side of the value network as compared to the value chain is that the products and pipeline business towards intelligent platform solu- creation of value is no longer so clear, and value may be created in tions. This creates direct demands on how innovation enablers, many ways over the same connections. Sometimes it is also very hubs and like structures are to be built up and managed. difficult to understand how the value is actually created. 64 Fig. 3.2.6. New Mindset Source: den Ouden, E. 2011. Innovation Design: Creating Value forPeople, Organizations and Society. Berlin: Springer 65 There may be power shifts between the parties, e.g. going from be- Creating value ing competitors to becoming collaborators and vice versa. And the It should also be note that value cannot be created in isolation. Value intangible value of the companies increases due to the diminishing is not an absolute, but something that is mainly constructed socially role of tangible products in this systemic approach. This increase is in the interaction between people. Thus we need to have a multiple especially notable in publicly quoted companies, but also the start- actors that create value and many that benefit from it. The collabo- up world is seeing very high premiums that are being paid for great rations are also needed to make sense of the value creation overall. ideas, sometimes without any tangible products at all. We do not share the same values (nor should we), but we do need to Multiple economies and value make sense of the common set of understandings that we have on value. And the main objective is to create ideas that really are valu- We live is a world that is becoming more and more connected, able in terms of solving problems of users, businesses, the ecosystem globalized and where ideas travel easily far. What does not travel so and society at large, preferable in win-win-win-win situation. easily are the operating contexts that affect the everyday of busi- ness making. We can all identify the agricultural, industrial, experi- Value to user is at the very core of each business proposition. There ence and knowledge economies around us. A key idea is that all of are different value drivers for users, organizations/businesses, the these economies exist at the same time in each place. The balance ecosystem and society at large. Also value can mean economic, as between the elements will vary from place to place and thus the well as social, psychological or ecological values. The key observation innovation policies, services and support mechanisms should also is that until now, it has been difficult to place sometimes very contra- reflect the local conditions. The transformative economy, or the dicting values into a joint framework. When we move to think about economy of meaning, is where users are central to value creation the meaningful value propositions that are needed, again the levels of and innovation. the value framework are a handy way of distinguishing between the ideas. It should be noted that pleasurable experiences seem to be the The recent thinking (source de Ouden, 2011) pinpoints towards only way in which human behavior is changed on a permanent basis. a trend where the captivating idea is based on meaning. This is the next step from the self-actualization (through e.g. brands) Den Ouden (2011) proposed a value “framework-of-thought” when that the experience and knowledge economies bring forth. These analyzing the value that one is intending on creating in new busi- trends are clearly visible at present in the industrialized coun- ness proposals. The idea is to ask oneself: how, where and to whom tries. It is still somewhat open how they translate to emerging am I proposing to create value, and what is the nature of that value? economies, but experience shows that stages tend to be replicat- The insight of the framework is to create a multiple level approach ed. The business mindset is based on business networks, where to value. As we note, the business profit is only one of the many box- cooperation is leveraged. es. It is evident that not all of the values will receive an equal weight in the process, but the argument is that each one should be consid- 66 ered, when we are heading towards an economy where the meaning Fig.3.2.7 Value Framework of things is of importance. When we are thinking about value that we intend to create it is useful to think about the meaningful innova- tions that we aim for. Value to whom Economy Psychology Sociology Ecology Source of value Meaningful Livability of A key piece in the puzzle is derived from the sources of value. Value Society Wealth Wellbeing life environment propositions are the very core of the business model. As seen from below, from the business modeling perspective, value can be created Shared Reciprocity in in many different ways, and in all parts of the canvas. Joining togeth- Ecosystem Stability Sustainability Drivers networks er the elements of Drucker’s 7 opportunity areas (see below) and the list below, one can achieve a “checklist” of the potential sources of opportunity, business and innovation. Value in business models can Social respon- Eco- Organization Profit Core values be created through creating new solutions, or satisfying an entirely sibility effectiveness novel set of needs through new offering, often technology related, or improving the performance of existing products or services. Value for User Happiness Belonging Eco-footprint money Tailoring products and services to the needs of customers (mass Source: den Ouden, E. 2011. Innovation Design: Creating Value forPeople, Organizations and customization, customer co-creation) or simply helping the custom- Society. Berlin: Springer er get things done in their own business or activity are important Sources of innovation value adding mechanisms, as is differentiating products and ser- vices through designing them in different, distinctive ways, to create When examining innovations, it is also important to try to under- distinction and status through branding products and services. stand where does they come from? What are the wider elements that help to create value and thus innovations; and where do good Offering similar/superior value at the same or lower price than the ideas come from? In this context we examine the seven sources of competition, while helping customers to reduce their costs or risks, innovation from Peter Drucker’s (1985) perspective. and making products and services available to new groups, together with providing convenience/usability (i.e. making things easier to In the first place, innovation can happen due to the unexpected hap- use) are also important ways to create tangible value through busi- pening, such as the accidental discovery of artificial sweeteners or ness models. (Source: www.businessmodelgeneration.com) antibiotics. Sometimes incongruities or conflicts between opposing functions, requirements or values may be the start of an innovation, as in the case of developing small cares with big interiors. 67 Process needs drive the emergence of innovation, as in the example vation can originate from any of the various actors and the collabo- of standardization of components, which allows for low-skilled peo- ration and interaction that take place between them. The key issue ple to assemble sophisticated goods. Industry markets and market is that it is difficult to understand the impact and potential coming structure may offer opportunities for new types of services, as in the from so many sources. case of outsourced maintenance of the IT infrastructures. Circumstances also affect innovation, as planned firm activities, Demographics are a major source of innovation, creating opportuni- both short and long term can produce innovations, as well as unex- ties for new types of products and services as life styles, tastes and pected occurrences, or so-called “Black Swans”, such as man-made needs change over time. As another example, changes in percep- (banking crises) or natural (tsunami) disasters. There is also change tion act as a source of innovation, as in the case of medical studies happening over time, as creative destruction (slow or rapid) forc- that revealed that being overweight is a major health risk factor, es whole industries to rethink their ways of doing things. In these resulting in lighter foods. In the last instance, new knowledge has cases, it is often very difficult to tell when innovations take place. produced many opportunities for new products and services. As an Hindsight and connecting the dots by looking backward are the only example, micro-electronics and new programming tools have driven really exact things in this. That being said, foresight tools can help to innovation over the last decades. make sense of the often very ambiguous circumstance. Functional and circumstantial sources of innovation Creating opportunities There are also functional sources of innovation. Corporate functions One of the challenges is to bring the ideas of tomorrow to the today and functionally oriented parties create opportunities and pathways of things in such a way that consumers, users, stakeholders can to innovation through internal value chains and /or spillovers from understand them. This is the key reason why we need to test and ex- competitors, or through linking up with external value chains of sup- periment with the concepts, proposals, products and services very pliers, customers, and complementary innovators. early on, to make sure that they are understandable and thus adopt- able. There are also aims to educate the clients in many cases. At the same time the work done at universities, government re- search institutions and private laboratories, together with compet- In examining business ideas and proposals, it is often useful to ing organizations and related industries serve as functional sources change focus. One way is to use distinct sets of tools that have been of innovation. Innovation scan originate also from other nations or developed in “parallel” universes of business. It is useful to ana- regions and finally, end-users of products and services can act as lyze the offering that has been developed through three concurrent significant sources of innovation. perspectives: the technical feasibility, the economic viability, and thirdly the desirability of the proposal to the user. In both cases one In many ways, there are similar to the elements that exist in the would aim to have a potential innovation that sits firmly in the cen- Isenberg innovation ecosystem model, and one could say that inno- tre of both universes. 68 Once you get into the analysis of the “design innovation” (note the and services delight customers and add value to business. But to link to design thinking here), one is especially concerned with the do this you need to have business think a bit wider on how you do human values of the proposal. This links up directly with the so- things. cial acceptability (and desirability, evidently) that innovation must And this is where “Design Thinking” comes in, and you need to re- have to be diffused widely. The interaction may be the key issues, configure business thinking to include the elements of: or human values, or organizational behavior (or all three), but in all cases there must exists a concern for the end users of the PSS. Espe- ✓✓ Empathy & affect, to imagine world from multiple perspectives cially services are extremely difficult to develop without an intimate and by placing people first; knowledge of how people do things. Often the easiest way is to ask ✓✓ Integrative thinking, to engage in both analytical thinking and them. In many cases the technical and business sides of the equa- the creation of novel alternatives; tion are simpler to figure out than the human factors. ✓✓ Optimism, in believing that at least one potential better solution Management and Design Thinking exists; In their book, Design in Business (2002), Margaret Bruce and John ✓✓ Experimentalism, in exploring in entirely new directions; Bessant take an integrated approach to design, assuming it is a core ✓✓ Collaborative work, in order to make sense of the ever-increasing business process as opposed to a peripheral or specialist activity. complexity of products, services and experiences. The time of They define Innovation as the successful application of new ideas in the lone creative genius has given way to enthusiastic interdisci- practice in the form of new or improved products, services or pro- plinary collaboration between engineers, designers, marketers, cesses. Creativity, on the other hand, is the ability to combine ideas architects, anthropologists, psychologists, to name a few. into new ways to solve problems and exploit opportunities. Their key message is to say that design is the purposeful application of When thinking about applying Design Thinking, we need to ask creativity throughout the process of innovation. ourselves: can we use design to make current processes and offer- ing better (incremental innovation). We also need to think through In terms of competitiveness, you can only compete essentially on alternative ways of doing things in “what if”, or future orientation price and/or differentiation. Competing in business through differ- mindset. It is also important to use design as a tool to find a place entiation requires that you are different, and that you offer “special” for radical, new business using design. Collaborative work is at the value to your customers. In other words, your products and services very centre of Design Thinking, as properly managed teams can un- have to be easily distinguishable from the wider mass of others. leash creativity in the organization to create new offering). Finally, The proposition is that design is essential in the process. Just think in order to manage high ambiguity, there is a need to do concurrent of services: when have you last had bad service? Or when have you experiments and have real time feedback mechanisms. used a product that does not work well? Well-designed products 69 Note: Design Thinking is typically a management fad. A recontextualization of ideas that have been around for a long time! While it is a fad, this does not make it less important or timely. Out of all of the identified elements that Design Thinking could bring about, collabora- tive work is the glue that makes things stick together. In other words, mastering / promoting / engaging in collaboration is the very key to successful application of design thinking, also understood in many ways as integrative thinking or multidisciplinary work. Developing service and business Business models ✓✓ Cost structure The following section is essentially based on Osterwalder (2010). The core business model is built up from the four components of A business model describes the rationale of how an organization customers, partners, revenue and value proposition (s). Missing one creates, delivers and captures value. It is also considered to be a of these elements implies that business cannot exist. When plan- common shared language within the corporation that allows you to ning for the model, sometimes we start from customers that we describe and develop business models to create new strategic alter- have identified and we think of what we value can offer them. Some- natives. In this way the business model can exists as an extension of times we have an offering and we are looking for the customers and strategic thinking of the firm, as a way of communicating common sometimes our partnerships enable and help to create new ways of aims, and as a tool for imaging where and how value can be created. doing things. In both cases the probability is high that one needs to iterate between the main elements in the business model. It is clear The model is built up of the following components: that resources, activities, cost structures and the other elements are ✓✓ Customer groups, segments also critical and the model needs to be seen as a holistic one. ✓✓ Value propositions Customers ✓✓ Channels It is necessary to define the different groups of people or organiza- ✓✓ Customer relationships tions that one wishes to reach and serve. Grouping customers into ✓✓ Revenue streams segments based on common needs, behavior, or other attributes ✓✓ Key resources helps to satisfy customers better. Conscious decisions must be ✓✓ Key activities made which groups to serve and which to ignore. ✓✓ Key partnerships There are many opportunities to innovate in customer groups / 70 segmentation, through identifying new needs, behavior and other (public private, small and large, for-profit and not-for-profit enter- attributes. Customer groups make up separate segments if: prises, in multiple types of relationships that can be competitive and collaborative at once. Different types of partnerships may include: ✓✓ The offer is distinct ✓✓ Strategic alliances between non-competitors ✓✓ Distribution channels are distinct ✓✓ Cooperation: alliances between competitors ✓✓ They require different types of relationships ✓✓ Joint ventures to develop new businesses ✓✓ They represent different profitabilities ✓✓ Buyer-supplier relationships. ✓✓ And are willing to pay different aspects of the offer. When looking at the complexity of the actors in the ecosystem, the That being said, mass markets do not distinguish between segments partnership issues often present a key challenge. The aims that or groups, relationship is with large groups with similar needs and organizations have to operate in ecosystems could be summed up problems. Niche markets cater to specialized segments, and re- in terms of optimization and economies of scale, where typically lationships address the specific needs, ignoring all else, often as companies do not wish to own or do all by themselves. They reduce suppliers-buyers; and segmented markets cater to a series of slightly costs through outsourcing and sharing infrastructure. The reduction different needs and problems, with different value propositions. In of risk and uncertainty through partnerships is important in compet- turn, diversified segments exist when an organization serves very itive environments. different customers at the same time and multi-sided platforms serve a single customer in different ways and at different stages. The Firms also acquire new resources and are able to undertake new important thing is to make a conscious decision where one wishes activities through extending capabilities, through the resources of to operate. partners, open innovation, licensing, and accessing customers. Ide- ally, these partnerships help to create scalable business models and Partnerships to enhance the robustness/resilience of the business. Typically, ecosystems involve and engage multiple types of hybrid 71 Revenue ✓✓ Licensing –Giving permission to use protected IPR Identifying potential revenue streams and pricing strategies are at ✓✓ Brokerage fees –Intermediations services between parties the very core of business modeling. Conventional wisdom says that ✓✓ Advertising –Fees from advertising a product or service customers and cash are the foundations of business, and the model of finding customers and extracting cash from them is a constant ✓✓ Fixed pricing –List pricing –Product feature pricing –Customer process of experimentation. The more business networks are head- segment dependent price –Volume dependent pricing ing towards platform-type of business, the more important it is to ✓✓ Dynamic pricing –Negotiation –Yield management/dependent – experiment with revenue models. Typically, indirect and recurring Real time markets set pricing –Auctions revenue from multiple sources is becoming the norm in networked business. Activities We can typically use the following approaches to revenue genera- As the fourth element to consider in business modeling, activities are tion in business models: fundamentally important, as activities are the engines that brings products, services and business models together and create the ✓✓ Asset sales –Selling ownership rights to physical products offering in practice. Without activities there is no offering and thus no ✓✓ Usage fees –Selling the use of a particular service business. Activities are dependent on human, financial and physical resources. The use and application of resources is limited by social ✓✓ Subscription fees –Selling continuous access to use constraints that thus also limit the activities that are possible. ✓✓ Lending/renting/leasing –Temporarily granting right of use 72 Delivering to a real world Product and service prototyping Fig.3.2.8 Product And Service Prototyping Prototypes can be used to explore concepts, evaluate them or communi- Product cate the concepts to others. Exploration prototypes are quick mockups, Service Prototypes Prototypes while communication prototypes can be both functional and elaborate. Intangible (sometimes Prototyping is about people. Users (and developers) of future products, Physical What is pro- tangible, using tra- services or PSSs are often unable to articulate what they want the pro- form (design Tangible totype? ditional prototyping material) posal to achieve, how this should be achieved, and what it would “look methods) and feel” like. It is difficult to visualize business models from words only, and creating models that “act out” the PSS can be highly informative How are the Delivery of and able to make visible both the key benefits and the problems. Creat- products/ser- Inconsistent (a bit the product/ Consistent vices deliv- different each time) ing prototypes also enables developers to “play around” with the con- service ered? cepts and learn by doing on many fronts. Research has shown that the construction process of the prototypes is a way of learning, and trying What is the Time-consuming (ac- to tease out especially the desirability aspect of the proposal is almost Time on the progression tion and interaction of - impossible without a prototype. experience of the prod- the end-user affects uct/service/ its understanding) In the prototyping of the product/service, there is almost always a need to create a physical mock-up of the concept. Generally How similar speaking the rapid analysis of new product/service concepts can be Validity are the test Not very familiar, if done on the basis of very rough models. Product prototypes can be of the Very and imple- the tests are simu- evaluation Similar roughly divided into three categories: environment mentantion lated contexts? ✓✓ Prototypes that show the desirability aspects of the product (i.e. a non-functional mockup that shows the product attributes and Not authentic if using how users will relate to it). Authenticity Who is role play. Authentic if of behaviors involved in Authentic ✓✓ Prototypes that illustrate the functionality of the product (i.e. the is done in real world, and context prototyping? real people technical feasibility, often through working prototypes). Source: Vabre, V. 2015. Service Prototyping in the ”wild”. Comparison of location-based & location independent Services. MSc Thesis, Aalto University 73 ✓✓ Prototypes that demonstrate the economic viability (often ✓✓ Contextual interviews: Conducted in the real world environment demonstrated through pre-production versions). and aiming to capture the influence of the real environment Prototypes that are useful in service design are linked to ones that ✓✓ The 5 Why’s: A chain of questions to uncover real reasons behind can illustrate: ✓✓ Cultural probes: Information gathering packages with user partic- ✓✓ The place where the service takes place, including the customer touch- ipation and self documentation points ✓✓ Mobile ethnography: Ethnographic research that takes place ✓✓ The flow of the service, or the customer journey independently of site ✓✓ The customer experience, or what the customer is expected to experience. ✓✓ A Day In The Life: Walking through the daily activities of a an individual A great variety of tools can be used to prototype services (and PSSs, ✓✓ Expectation Maps: Charting what customers expect evidently). In many ways, products inside PSSs can be illustrated as ✓✓ Personas: Making fictional profiles of users, customers “tokens” or proxys of the real ones. In some cases, any artefact can be used to illustrate how a product fits in the PSS being described, ✓✓ Idea generation: Using structure and inspiration in group brainstorming especially in the front-end mock-ups, which aim to illustrate the sessions ideas and concepts, so that development works can be informed. ✓✓ What IF?: A question posed to tease out outlandish scenarios Prototyping services ✓✓ Design Scenarios: Hypothetical stories with detail to explore an offering Prototypes are often used to research the topic deeply. Some key Prototype testing tools to prototype services in PSSs include: Similarly, just as there are methods to develop service prototypes, ✓✓ Stakeholder maps: A usually visual representation of those who there are methods to test them. It should be noted that sometimes are involved the testing method is only creating a way to demonstrate the pro- ✓✓ Service safaris: Going out “to the wild” to see good and bad ser- totype to an audience. Testing methods create usually extensive vice experiences amounts of qualitative data that needs to be analyzed and used to create the next version of the prototype. How this data is captured ✓✓ Shadowing: Immersing yourself in the lives of customers, front- will depend on each situation, but often it touches on methods line staff which are close to marketing research (filming people doing things, ✓✓ Customer journey maps: Creates a map of the touchpoints of a visualizing data, open-ended interviews, observation, ethnography customer experience in general). 74 ✓✓ Storyboards: A series of drawings or pictures that visualize a par- Fig.3.2.10 Aims Of Prototypes ticular sequence of events. This might include common situations where a service is used to be used ✓✓ Desktop Walkthrough: A small scale 3-D model of a service envi- ronment. Helps to act out the service situation and to think about the spatial relationships in the service situations ✓✓ Service Staging: The physical acting out of scenarios of service situations by design teams, involving also customers and users Level of devel- opment of the Low Medium High ✓✓ Agile Development: Iterative project management methodology hypothesis used to develop projects as they go along, adapting to situations • Produce many • Visualize ideas • Test hypotheses ✓✓ Co-creation: A key method, can be used in both planning and ideas and insides • Generate feed- • Convey the • Learn how to use main points of testing Goal different tech- back the idea to the • Generate as- ✓✓ Storytelling: Sharing insights through narratives niques specific targeted sumptions • Test it roughly audience ✓✓ Service Blueprints: A way to specify and detail every action that Improve proto- Reasons why Discard ideas and Get real insights takes place in every aspect of the service and in the touchpoints prototyping at that insights once they types and turn from different insights into a ✓✓ Service Roleplay: Theatrical rehearsal method used to explore, stage are used stakeholders solution generate and test ideas Mode of inquiry Divergent Transformative Convergent ✓✓ Customer Lifecycle Maps: Holistic visualizations of a customer’s overall relationship with a service provider Very specific: Conditions of the Any conditions More specific realistic service ✓✓ Business Model Canvas: Tool for describing, analyzing and design- testing environment ing business models. Testing audience Anyone More targeted Very targeted Level of knowledge Validation of the gathered in the Little Rough validation hypothesis process Source:: Vabre, V. 2015. Service Prototyping in the ”wild”. Comparison of location-based & location independent Services. MSc Thesis, Aalto University 75 ANNEX 1 Organizations behind this toolkit 76 Over the last four years, several organizations have contributed extensively towards the development of the Toolkit, including the Waag Society from Amster¬dam, NUMA from Paris, Forum Virium from Helsinki, and Citilab and 22@Urban Lab from Barcelona, in addition to the academic partners of Aalto University from Finland and ESADE Business School from Spain and NIPA from Korea. We briefly introduce our part¬ners in this section and summarize their key activities. The World Bank ICT Group Aalto University The ICT global practice of the Established in 2010, the Aalto World Bank is helping devel- University is a new university oping countries harness the with centuries of experience. potential of ICTs to transform The Aalto University was the delivery of public services, created from the merger of drive innovations and pro- three Finnish universities: The ductivity gains, and improve overall competitiveness by increasing Helsinki School of Economics, Helsinki University of Technology and access to broadband Internet. The strategy, and respective business The University of Art and Design Helsinki. Aalto University School plan of the ICT global practice for the next three years (2016-18), of Science and Technology has been divided into four new schools aims at: expanding digital connectivity by enabling the right poli- starting from 1st of January 2011. The six schools of Aalto University cy and regulatory frameworks for a competitive ICT environment; are all leading and renowned institutions in their respective fields strengthening the analog foundations of the digital economy, by and in their own right. According to the Aalto University strategy, building the necessary skills so people can effectively use the Inter- actions to enforce the plan of sustainable development are under net; and improving global cooperation to address trans-boundary way. Sustainable development is linked both to the University’s own challenges like cyber crime. actions, and the contents of research and teaching. The Mission 77 of the University sets down an obligation to enhance sustainable NIPA development. According to this Mission, “Aalto University strives to NIPA, the National IT Industry change the world through top-quality interdisciplinary research, pi- Promotion Agency of Korea, oneering education, surpassing traditional boundaries, and renew- devotes itself to reinforcing al. The Aalto University educates responsible, broadminded experts the competitiveness of the IT with a comprehensive understanding of complex subjects to act as industry and contributes to society’s visionaries.” the economic growth through ESADE University the efficient support and laying the groundwork for the industrial technology promotion. The major business areas of NIPA include ESADE is one of the world’s supporting the policy research and development for the IT industry, most prestigious academic helping to establish the foundation of the IT industry and cultivate institutions. Its main richness its human resources, vitalizing the distribution market for the devel- stems from faculty and staff opment of the IT industry and support marketing, promoting busi- whose reflection, dialogue, nesses related to the convergence and utilization of IT technology projects and initiatives contrib- and supporting international exchange, cooperation, and overseas ute to excellent training, relevant investigation and research. ESADE expansion related to the IT industry. has agreements and collaborations with over 100 universities and business schools on five continents and is currently the European Waag Society, Amsterdam business school with the most extensive student exchange network Founded in 1994, Waag Society, in Latin America. ESADE offers Masters and PhD level courses in Man- one of the oldest and larg- agement Studies that draw on the expertise of high profile academ- est independent Media Labs ics, institutions and research centers/groups, who focus on entre- in Europe, is an extensively preneurship, innovation, leadership and governance, management, networked interdisciplinary skills and knowledge, business social responsibility, economic law, non-profit media lab research- branding, etc. ing and developing new technology, art and culture. Its mission is to engage in interdisciplinary work in the fields of Living Lab meth- 78 odologies, appropriation of technologies, empowerment of citizens, NUMA, Paris (Digital) Social Innovation, and acceleration and Incubation. The Located in the very center of Waag Society has its roots in the Digital City, the first Online Internet Paris, NUMA (Numérique + community in the Netherlands, which aimed to make the Internet Humain) - is a digital innovation available to the public. hub association in the “Silicon The Waag Society, hosting events in its medieval location, follows Valley” of Paris. Formerly known the method of Creative Research, which is experimental, interdisci- as Silicon Sentier, NUMA’s plinary research. End-users have a large influence on final results; in success story began with the opening in 2008 of La Cantine, the 1st close co-operation with end-users Waag develops technology that co-working space in France. Le Camping, the 1st start-up accelerator enables people to express themselves, connect, reflect and share. in France followed in 2011. Renamed in 2014, Waag projects have won numerous prizes for their visionary percep- NUMA aims to help to grow business ideas with cutting edge tech tion of the technological needs in society. Some of key Waag activi- startups providing methodology and mentorship to individuals, ties involve linking arts, science, technology & society, human-cen- communities, start-ups and large companies. NUMA brings together tered development, facilitating innovation processes. Within its under one umbrella community events, start-up acceleration, and regional context, the Waag Society brings together developer hubs innovation programs for corporations. These activities are carried as the HUB, Open Sate or Appsterdam, Innovation Labs such as Me- out by NUMA Sprint, a 4 month-long residential program to accel- diamatic.net, accelerators such as rockstart, and startup bootcamps erate business ideas; NUMA Engage, which supports the creation of and knowledge institutions. Within the international context, the content, formats and logistics for community events; NUMA shift, Waag society has built a huge network of partners and is a member a 1-4 month long personalized program for large enterprises, and of several networks in the fields of Digital Social Innovation, Living NUMA Explore, an open innovation sandbox of 3-6 months. Labs and Fab Labs. NUMA works is in close connection with local communities of de- velopers, other incubators and accelerators, and Paris’ local startup and entrepreneurship scenes. NUMA has the support of the city of Paris, the surrounding Ile-de-France region, as well as private-sec- 79 tor players like energy giant EDF, French bank BNP Paribas, Orange, they can subsequently be commercialized Grow the pipeline of inno- Google and the American office furniture makers Steelcase. That vative products and services that can be procured by the city Create being said, NUMA has reduced its dependence on public funding, new products and services that improve urban life for the citizens of and currently more than half of its budget comes from private spon- Barcelona. All of the Urban Lab’s projects are on streets and in open sors or revenue from projects and services. Its private initiatives, like spaces, and most involve the use of sensors. The Urban Lab sees the LeCamping accelerator, take 3% equity in startups accelerated itself as a gateway for companies to approach the City Council about at NUMA. Consultancy projects (Airbus is one of the clients) and real running pilots or experiments that can improve the city. Companies estate projects are other revenue pathways. with ideas for a pilot submit a proposal to the Urban Lab Board, which is comprised of staff from 22@ Barcelona and representatives Urban Lab, Barcelona from City Hall. In 2008, the city of Barcelona created the Barcelona Urban Forum Virium, Helsinki Lab with the goal of turning the Founded in 2006, Forum Virium city into an urban laboratory. Helsinki (FV) is a non-profit The Urban Lab is part of 22@ enterprise owned by the City Barcelona,4 a project to con- of Helsinki and is part of the vert 200 hectares of industrial land in the city centre into a district City of Helsinki Group. It has a that fosters innovation through new collaborations among the focus on research and development of digital services that utilize public, private and not-for-profit sectors. At its simplest, the Barce- user-driven innovation methods and public/private collaboration. lona Urban Lab enables businesses to run pilots and experiments in The aim is to create new digital service innovation in cooperation real urban settings. Pilots must be aligned with the objectives and with companies, public sector organizations and citizens, focusing priorities of Barcelona City Council, demonstrate benefits to the on smart cities, open data and wellbeing services. public and have an ability to solve unanswered needs. The Urban FV plays a key role in implementing Helsinki’s Smart and Open City Lab focuses on new products and services, not those already in the strategy. The main goal of FV is to develop the essential building blocks market, and requires that all costs of testing be covered by the com- for the smart and open cities of the future. Innovation initiatives such as pany. The Urban Lab aims to achieve four main objectives: Foster Smart Kalasatama, Helsinki Region Infoshare, Open Ahjo, Helsinki Loves business innovation in 22@ Barcelona Enable companies to test Developers, Apps4Finland, CitySDK, and Code for Europe are examples innovative products and services so that if they prove their value of initiatives advancing Helsinki’s Smart City Strategy. 80 The FV innovation projects focus on Smart City Strategies, new forms involved in the innovation process. of media, growth company services and innovation communities Nowadays, Citilab is a center for social and digital innovation that (Living labs), working on topics such as open developers and SME exploits and spreads the digital impact on creative thinking, design engagement, innovation challenges, events, meet-ups, pilots and and innovation emerging from digital culture. The project started testbeds, open data & APIs, links to start-up network, and citizen with the idea that digital technologies, specifically Internet, are a way involvement in city government. of innovation much more focused on citizens. Citilab was created to The organization is connected to a large network of Nordic SME be a place to learn to use technology, but also a meeting point be- companies thanks to its Growth Program, which has helped it to tween the physical and the virtual world, to exchange innovative ideas add 30-50 companies around the world each year since 2006. Forum and experiences related to new social networks and technologies. Virium Helsinki has been a partner in numerous successful Europe- Citilab has been promoting activities as a center for civic innovation, an projects in the past, as a member of EIT ICT Labs and a founding spreading the Knowledge Society using basically the design thinking member of the 300-member-strong European Network of Living and user-centered creation as methods of work. Citilab’s uniqueness Labs (ENoLL), Open and Agile Cities. is that it incorporates the experiences of years of activity of civic The revenue model of FV is based on project funds, which support networks in Catalonia in Living labs. Unlike conventional laborato- its research structure. As part of the City of Helsinki Group, it re- ries and research centers, Living Labs allow the creation and valida- ceives basic funding from the City of Helsinki. Additionally, it re- tion of technologies, products, services and business models in real, ceives membership fees from its partners. everyday environments and contexts. Citilab, Barcelona CitiLab is a consortium composed of the Ayuntamiento de Cornellá de Llobregat, Generalitat de Catalunya, Diputació de Barcelona, Citilab is located in Barcelona, WTC Almeda ParK, SANO, Fundació Catalana per a la Recerca i la Spain and was established in Innovació, UPC, Siemens, Lluís Bayó Ortonoves and Antonio Morales 1997. It was formally constitut- Albarracín. Apart from these partners, Citilab has a strong connec- ed in 2008 by the creation of tion with local stakeholders and European partners from the Open the Fundación para el Fomen- and Social Innovation Communities. The Citilab works with a budget to de la Sociedad del Cono- which comes 50% from local government and 50% from projects cimiento, driven by Cornellà de Llobregat’s city council. Citilab is and services and employs 40 professionals. based largely on the model of Living Lab, public-private entity where citizens, businesses, public agencies and research centers are all 81 ANNEX 2 Key Concepts & References 82 This section clarifies the main concepts used in this toolkit and provides a list of references where you can find relevant information about the topics. It also provides a list of other Design Thinking toolkits that are currently available. Key concepts Innovation Innovation ecosystem The successful application of new ideas in practice in the form of A complex system that engages government, universities and pri- new or improved products, services or processes (Bruce & Bessant vate sector as well as users, clients, customers, non-governmental 2002). The concept implies the introduction of something novel (to organizations and other grassroots actors. Innovation ecosystems the world or to the circumstance), useful (based on needs) and suc- are considered to be more bottom-up than traditional innovation cessful. Innovation needs to be socially accepted. systems. The essence of innovation ecosystems lies in collaboration between all actors of the system. Innovation hubs Local innovation hubs are here defined as platform services that are Business ecosystem spaces and sets of activities for the facilitation and coordination and An economic community supported by foundation of interacting or- the generation, development and sustaining of active local inno- ganizations and individuals. (www.businessmodelgeneration.com). vation ecosystems. Many of these hubs involve activities and func- tions consisting of co-working spaces, maker labs, FabLabs, living Business model labs and urban living labs. A description of business logic, the way a company operates, gener- ates revenues, and creates value for its stakeholders. It helps to map Innovation system out the matters related to the company’s core business. A “triple-helix” system formed by government, universities or other knowledge creators and the private sector, enabling innovation on a Business model canvas (Osterwalder) national level. Innovation systems are often considered to be top- A visual model and exercise to understand and create business down systems. models. Includes the basic building blocks of the business model (customers, value, infrastructure and financial viability) 83 Creativity Front-end innovation. The ability to combine ideas into new ways to solve problems and The pre-development phase of innovation where processes are not exploit opportunities (Bruce & Bessant 2002). yet formalized. The phase is characterized by high uncertainty and ambiguity, but provides often the best opportunities to improve the Design is the purposeful application of creativity throughout the overall innovation capability. process of innovation (Bruce & Bessant 2002). Design Thinking Niche markets The subset of the market on which a specific product is focusing. Complementary to analytical thinking, design thinking is a creative The market niche defines the product features aimed at satisfying process based on building up ideas and thinking outside of the box and specific market needs. through “what if?” thinking. There are no judgments early on in design thinking. This eliminates the fear of failure and encourages maximum Offering input and participation in the ideation and prototype phases. Often The products and services a company offers for its customers. The design thinking process is seen to have seven stages: define, research, offering creates the value for the client/customer/user. ideate, prototype, choose, implement, and learn. Within these seven steps, problems can be framed, the right questions can be asked, more Pipe business ideas can be created, and the best answers can be chosen. The steps Firms create products and services, and then push them out and sell aren’t linear; they can occur simultaneously and can be repeated. them, and value is created upstream and consumed downstream. Ecosystem model The conventional industry and dominant model of business until today (television, britannica, education systems, industry, services). A visual model to understand ecosystems. There are six main do- Products & services have exchange value. mains: enabling policy and leadership, availability of appropriate finance, conductive culture, range of institutional and infrastructural Platform business supports, quality of human capital and characteristic of markets. Producers and consumers of services are not related to each other These domains are divided into 12 categories, which represent key in a linear way, but operate on a joint platform (often through new components of a healthy ecosystem (after Isenberg 2010). technologies, e.g. the internet) , which allow users / consumers to Entrepreneurship ecosystem create value for themselves and other users / consumers (e.g. Wiki- pedia). Products & services have no value unless users use them. The business environment affecting the local/regional entrepreneurship. The ecosystem includes individuals, organizations and institutions. 84 Product-service systems (PSSs) Value An offering of a mix of both products and services. PSSs as systems Value can mean economic, social, psychological or ecological value. involve tangibles (the products) and intangibles (the services) in Different actors in the innovation ecosystem system might perceive combination for fulfilling specific customer needs (in other words, the value in different ways. There are different value drivers for us- close to the previous offering) and can provide higher profits than ers, organizations/businesses, the ecosystem and society as large. products (or services) alone. Value framework Revenue logic Multiple level approach to value aims to help identifying of how, The mechanism that is used to generate profit from the operations where and to whom is one proposing to create value and what is the of a company. nature of that value (den Ouden 2011). Stakeholder Value proposition A person, a group or an organization that affects or is affected by an A statement of all the benefits a company promises to deliver for its organization’s actions. In project-based business, a stakeholder has customer. an interest in a project. References Von Hippel, E. 1988. The Sources of Innovation. Oxford: Oxford Uni- Vabre, V. 2015. Service Prototyping in the ”wild”. Comparison of loca- versity Press, tion-based & location independent services. MSc Thesis. Helsinki: Aalto University. Bruce, M., Bessant, J. 2002. Design in Business: Strategic Innovation Through Design. Upper Saddle River: Prentice Hall. Honkapirtti, L. 2011. “Building Bridges – Creating a University-Based Entrepreneurship Ecosystem Case: EACH-USP Leste Campus in São Launonen, M. 2011. Hubconcepts – The Global Best Practice for Man- Paulo, Brazil”. MSc Thesis. Helsinki: Aalto University.Govindarajan, aging Innovation Ecosystems and Hubs. Helsinki: Hubconcepts V., Trimble, C. 2005. Ten Rules for Strategic Innovators: From idea to Artto, K., & Wikström, K. 2005. What is project business. International Execution. Boston: Harvard Business School Press. Journal of Project Management, 23 (5), pp. 343-353. 85 Govindarajan, V., Trimble, C. 2012. Reverse Innovation: Create Far Moore, J.F. (1996). The Death of Competition: Leadership & Strategy from Home, Win Everywhere. Boston: Harvard Business Review in the Age of Business Ecosystems. New York, Harper Business. Press Osterwalder, A. Pigneur, Y. 2010. Business Model Generation: A Iansati, M. & Levien, R. (2004). The Keystone Advantage, What the Handbook for Visionaries, Game Changers, and Challengers. Hobo- New Dynamics of Business Ecosystems Mean for Strategy, Innova- ken: John Wiley & Sons tion, and Sustainability. Harvard Business School Publishing Corpo- Radjou, N., Prabhu, J., Ahuja, S. 2012. Jugaad innovation: Think ration, USA Frugal, Be Flexible, generate Breakthrough Growth. San Francisco: Iansiti M & Levien R. (2004). Strategy as ecology. Harvard Business Jossey-Bass Review Vol. 82 Issue 3: 68–79. Strickdorn, M., Schneider, J. 2010. This is Service Design Thinking: Isenberg, D. (2010). How to start an entrepreneurial revolution. Har- Basics-Tools-Cases. Amsterdam: BIS Publishers ward Business Review. Teece, D. (2010). Business Models, Business Strategy and Innovation. Martin, R. 2009. The Design of Business: Why Design Thinking is the Long Range Planning, Vol. 43, issues 2-3, April-June 2010, pages 172- Next Competitive Advantage. Boston: Harvard Business Press. 194 Moore, J. F. (1993). Predators and prey: a new ecology of competi- Serrat, O. (2012). Business model innovation, Washington, DC: Asian tion. Harvard business review 71, pages 75-75. Development Bank. Other sources BEEB, Babson Entrepreneurship Ecosystem Project official website, http://www.fastcompany.com/most-innovative-companies/2012/ Available: http://entrepreneurial-revolution.com/ full-list The Economist, Jugaad Innovation, http://www.economist.com/node/21551028 Fast company: 86