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The Design of Business: Why Design Thinking is the Next Competitive Advantage, by Roger L. Martin
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Most companies today have innovation envy. They yearn to come up with a gamechanging innovation like Apple's iPod, or create an entirely new category like Facebook. Many make genuine efforts to be innovativethey spend on R&D, bring in creative designers, hire innovation consultants. But they get disappointing results.Why? In The Design of Business, Roger Martin offers a compelling and provocative answer: we rely far too exclusively on analytical thinking, which merely refines current knowledge, producing small improvements to the status quo.To innovate and win, companies need design thinking. This form of thinking is rooted in how knowledge advances from one stage to anotherfrom mystery (something we can't explain) to heuristic (a rule of thumb that guides us toward solution) to algorithm (a predictable formula for producing an answer) to code (when the formula becomes so predictable it can be fully automated). As knowledge advances across the stages, productivity grows and costs drop-creating massive value for companies.Martin shows how leading companies such as Procter & Gamble, Cirque du Soleil, RIM, and others use design thinking to push knowledge through the stages in ways that produce breakthrough innovations and competitive advantage.Filled with deep insights and fresh perspectives, The Design of Business reveals the true foundation of successful, profitable innovation.
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Product details
Hardcover: 208 pages
Publisher: Harvard Business Review Press; Third Edition edition (October 13, 2009)
Language: English
ISBN-10: 9781422177808
ISBN-13: 978-1422177808
ASIN: 1422177807
Product Dimensions:
5.8 x 0.8 x 8.5 inches
Shipping Weight: 11.2 ounces (View shipping rates and policies)
Average Customer Review:
4.1 out of 5 stars
61 customer reviews
Amazon Best Sellers Rank:
#121,722 in Books (See Top 100 in Books)
The Design of Business by Roger Martin is a thought-provoking book that seeks to probe the reasons behind the current state of business and the new ways of thinking needed to change that state for the better. The book in my opinion is miss-titled as it is more about thinking than design. This does not make it a bad book, but one that will disappoint readers looking for design techniques based on the title.Martin's thesis centers around a few key concepts including:The knowledge funnel where ideas and innovations move from exploring mysteries of business and customers, to defining heuristics and finally developing algorithms. While the funnel looks like a traditional innovation process, Martin applies it to aspects of organizational design, behavior and innovation to good effect.Martin points to the difference between managing businesses for reliability and seeking validity. Reliability concentrates on managing predictable performance, financials, reducing process variance and establishing control. Validity concentrates on learning what is right based more on heuristics and qualitative than quantitative methods. Martin's conjecture is that we need both, but probably need more validity to generate the creativity and innovation needed to survive in a dynamic market.Design thinking, here Martin borrows Tim Brown of IDEO's definition and makes the connection between design thinking and abductive reasoning which centers around observing data that does not fit with existing models or patterns. Abductive reasoning is in sharp contrast to deductive and inductive thinking that dominant business management.The case studies on P&G, RIM, Cirque du Soldier are predictable and read more like narrative stories of executive actions rather than an analysis of what these companies did to redesign and innovate in their company. Frankly I have read other authors case studies of these companies and found them more valuable.The combination of all of this gives me the impression that the book is a set of ideas in search of an application. Now that may sound harsh, but I kept looking for support on how I can apply these ideas by learning from others.Martin does include a discussion about a personal knowledge system that consists of the way you view the world, the tools you use to organize your thinking and understanding and finally the experience that you need to build your sensitivity skills. The Personal Knowledge system is an example of what I am talking about, good ideas, presented in a clear fashion but without a particular set of next steps or examples of how mere mortals have transformed themselves.Using Martin's terminology I get his ideas and see them as valid, but I was looking for a little reliability based tools and approaches to turn valid ideas into action and results.The book presents its ideas in a fairly academic context, discussed more as ideas than recipes or a framework for designing a business. That is a disappointment as the book was recommended to me as a design book.I recommend the book for people who want to explore the way of thinking and deep systems behind design thinking. I cannot recommend the book for people who are looking to learn about how to apply design thinking. If you are looking for a good design thinking book go to the source Tim Brown's new book Change by Design which has a greater focus on understanding design thinking at an actionable level.
I was interested in learning more about "design thinking" and how it applied to businesses and purchased the book. After all, Martin had a strong reputation in the field and I wanted to read what the best in the field had to say about the subject.The first chapter whetted my appetite; I was able to get a glimpse of what design thinking could offer. In the subsequent chapters I learned about a few more pieces of the puzzle as the author seemed to remove some veils. But the more veils removed the more it looked the same: cloudy with some allure of the beauty hiding behind the veils. Most salient attributes, repeated over and over again, are "reliability vs validity," "traditional vs. design thinking," "backward looking vs. forward looking," "inductive and deductive reasoning vs. abductive reasoning."The fundamental argument set forth is this: Reliability oriented managers of the traditional organizations try to find comfort in reliability based on historical data. Future does not necessarily a repeat of the past; ergo, reliability based thinking is old fashioned and traditional. Contrary to this, validity based thinking seeks validity in the unfolding future. Now, all this is very attractive thoughts to me. But ...The writing has far too many examples of how successful design thinking worked for P&G, Herman Miller, RIM, and others. The amount of explanation of what design thinking is, how abductive reasoning works, or how design thinking can be learned or taught is generally missing. Ironically, despite the forward looking strength of design thinking, most of the narrative is the backward looking evidence seeking in nature, and thus, one could argue that it leans towards the antithesis of design thinking: reliability orientation.You will leave this book somewhat frustrated and not really understanding what design thinking is. The author spends much more time making a case against reliability oriented, traditional thinking than for forward looking design thinking.Now, some will likely say that if I don't get it design thinking is not for me. Who knows, maybe they are right. But I would have expected a book with a stronger presence in the domain of design thinking rather than in the backward looking traditional thinking, and make the core idea clearly presented rather than talking around it by way of examples. Read chapter 7 (the last chapter) first, that may help alleviate the above problems to a small extent.The book succeeds, however, in getting you read more about design thinking and abductive logic, and is entertaining.
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