Agile Innovation and Design Thinking
Agile Innovation and Design Thinking
To be agile means reacting to changes, embracing them, and leveraging them to gain benefits for
you and the entire organization.
• Proactivity: the ability to anticipate issues related to changes and offer concrete solutions.
Adaptability: the ability to collaborate, even with people from different backgrounds, while
being open to learning new skills, and embracing new tasks and new roles
• Resiliency: the positive attitude towards what is new, dealing with uncertainty and managing
stressful situations
Lean Startup
Lean Startup methodology is a scientific approach to launching a startup that draws on user
feedback data to guide and speed up the product’s iterative development.
Lean Startup provides a scientific approach to creating and managing startups and get a desired
product to customers' hands faster.
• Eliminate Uncertainty: Using the Lean Startup approach, companies can create order not
chaos by providing tools to test a vision continuously.
• Work Smarter, not Harder: By the time that product is ready to be distributed widely, it will
already have established customers. It will have solved real problems and offer detailed
specifications for what needs to be built.
• Develop an MVP: Once the MVP is established, a startup can work on tuning the engine.
This will involve measurement and learning and must include actionable metrics that can
demonstrate cause and effect question
Core Principles of Lean Startup:
1. Entrepreneurs are everywhere: You don't have to work in a garage to be in a startup.
2. Entrepreneurship is management: A startup is an institution, not just a product, so it requires
management, a new kind of management specifically geared to its context.
3. Validated learning: Startups exist not to make stuff, make money, or serve customers. They
exist to learn how to build a sustainable business. This learning can be validated scientifically,
by running experiments that allow us to test each element of our vision.
4. Innovation accounting: To improve
entrepreneurial outcomes, and to hold
entrepreneurs accountable, we need to focus on the
boring stuff: how to measure progress, how to
setup milestones, how to prioritize work. This
requires a new kind of accounting, specific to
startups.
5. Build-Measure-Learn: The fundamental activity
of a startup is to turn ideas into products, measure
how customers respond, and then learn whether to
pivot or persevere. All successful startup processes
should be geared to accelerate that feedback loop.
Design Sprint
The sprint is a five-day process for answering critical business questions through design,
prototyping, and testing ideas with customers.
Developed at Google Ventures, it’s a “greatest hits” of business strategy, innovation, behavior science,
design thinking, and more — packaged into a battle-tested process that any team can use. Instead of
waiting to launch a minimal product to understand if an idea is any good, teams get great data from a
prototype.
Core Principles of Design Sprint:
1. Human-Centered Design, from Design Thinking
2. Problem Reframing, from Design Thinking
3. Iterative Approach, from Lean Startup
4. Minimum Viable Product, from Lean Startup
Minimum Viable Product (MVP) is a simplified, yet functional version of the solution a project
team is trying to develop. The objective is to create a prototype and use it to test and pivot the solution.
Pivot, instead, means to change the existing solution into something else that could generate more
value to the users
Design Sprint Process
Understand:
This first day "understand" is critical for the smooth progress of the Sprint as it serves to align with
the objectives of the workshop and to define the problem better. This problem framing effort is the
heart of the first day.
Main activities:
• Interviewing and Observing,
• Mapping and Interpreting,
• Defining the Problem
How to carry out the understanding phase:
Look for stories, discover weak signals, interpret common and original behaviors
Knowing (e.g. Interviews, Empathic Design)
Know the users’ needs and empathize with the current solutions.
• Identification of different user categories:
Representative users (e.g. core drivers), New potential users (e.g. less wealthy users),
Precursory users (e.g. teenagers), Non-users (e.g. non-drivers), Fringe users (e.g. drivers with
very big families), Advanced (expert) users (e.g. modifiers).
• Identification of different user needs:
Explicit Needs:
Interview:
• Several users
• • Quantitative analysis
• • Different channels (e.g. email, web, phone )
• • Information biases •
• Pre-defined interaction with users.
Focus Group:
• Few users
• Qualitative analysis
• Controlled context
• Sampling particularly critical
• Interaction among users
Immersing (e.g. Ethnography, Netnography)
Framing
Shape the initial formulation of the problem worth solving
Reframing
Move from needs to insights in order to creatively frame the problem.
Transform insights into How Might We questions: The insights can be turned into questions about
how the opportunities you have detected can be exploited.
1. Rephrase: look at your insights and try to transform into questions starting with 'how might
we'. More than one 'how might we' can come from a single insight.
2. Double check: make sure that your questions allow for multiple solutions, if doesn't then
broaden your parameters.
3. Double check again: now make sure your questions aren't too broad, you need to be able to
see a definite starting point for your idea generation
Every problem is an opportunity for design. By reframing your challenge as a How Might We
question, you set the ground for an innovative solution. The «How Might We» format suggests that a
solution is possible. It opens to a variety of anwers . A properly framed How Might We doesn’t suggest
a particular solution, but gives you the perfect frame for innovative thinking.
Sketch:
On the second day the team will focus on the ideation process. This step, Google calls "diverge" or
sketch. It allows each participant to sketch their interpretation of the future concept. This avoids plain
brainstorming and brings more interesting solutions on the table.
Main activities:
• Imaging and Ideating
• Remixing and Improving
•
Different methodologies/ suggestions and frameworks for the sketch phase:
✓ Search for existing solutions. One methodology is the Lightning Demos (Comparable
Problems techniques): make a list, give three-minute demos, capture big ideas as you go. →
Look at different industries.
Do not start from scratch, in Digital Environment and not only solutions are out there you just
need to find them!
✓ Divide or swarm:if the target is broad allow people to work on different parts → Let people
choose.
Individually reflect before the sketching This supports the creation of background ideas and
spark creativity.
✓ Everyone individually should draw, write express his or her ideas because is the best way to
transform abstract ideas into concrete solutions → Solutions
✓ Work alone together: make it self explanatory , keep it anonymous, ugly is okay, words matter,
give it a catchy title → Detailed sketches not pieces of art
✓ Individually Sketch 8 solutions: solutions are different and might be on the same aspects
tackled but with different variations. Aim for quantity, not quality,
Decide:
This day is important because this is where the team will make important decisions regarding the rest
of the Sprint: what features will we keep? What are we going to prototype? How can we simplify? It
is also an inspiring moment of the experience as you discover the ideas of the other participants.
Main activities:
• Criticizing and Voting
• Storyboarding
✓ Silent Review and vote: keep a collaborative mindset and environment, the facilitator is
crucial
✓ Rumble or all-in-one: if you have two ideas you can create a battle head to head until Friday.
You can bundle ideas or group them. Allow your team to explore multiple options! Ideas are
always good. Keep an open minded perspective, converge or diverge but decide!
✓ Take the winning sketches and string them together into a storyboard in order to be ready for
prototype: 10/15 frames. Use it to imagine your final prototype. If performed correctly, this
allows the team to align on the direction to be followed. It is a convergent tool. It is crucial to
reflect on pre-during and post experience.
Prototype:
All ideas from previous days will be consolidated on day 4’s prototype. One day to make what is
sometimes a blurry concept look tangible and testable.
Main activities:
• Wireframing
• Building prototype
• Preparing user tests
MVP
It is a simplified, yet functional version of the solution a project team is trying to develop.
Objective: create a prototype and use it to test and pivot the solution. → Change the existing solution
into something else that could generate more value to the users.
MVP = late prototype for Designers - a solution that enable the “go to market”
MVS = early prototype
MVP: (minimum viable product)
1. Think about things you consider cool
2. Choose one
3. Try and see if he/she likes it. If not pivot
Prototype: “A first, typical or preliminary model of something especially a machine, from which
other forms are developed or copied”
Some methods for prototyping are: Create a Pitch & Live Prototyping.
There is also the Customer Journey!
The customer journey map is an oriented graph that describes the journey of a user by
representing the different touchpoints that characterize his interaction with the service.
In this kind of visualization, the interaction is described step by step as in the classical blueprint, but
there is a stronger emphasis on some aspects as the flux of information and the physical devices
involved. Building a customer journey implies the observation of the user experience and the
representation of that experience through its touchpoints.
A touchpoint is any interaction (including physical and digital encounters) that might alter the
way that your customer feels about your product, brand, business or service.
Touchpoints support the customer throughout all the stages of his journey. An integrated and careful
design of the touchpoints improves the overall customer experience
Test:
The main risk of a new product or service creation is that it won't find its audience. That users may
not understand or accept they must change their habits. Testing is the way to improve your concept
significantly before you start coding. Those few hours can save you tons of money.
Main activities:
• AB testing
• Interviewing and Observing
The Experimentation Process
You need hypothesis to be tested: not too much and not too complex. It is a crucial moment because
it is a learning moment: all of your further development are going to be grounded on this. Be specific,
be aware.
Set up roles such as Observers and Facilitators. Also, every test must have a specific WHO; HOW
and WHY.
Develop Hypothees
After understanding and having new ideas, hypotheses are formulated in the second stage.
The best experiments are based on 5 customers: after five customer interviews, big patterns will
emerge.
“5x5 Approach”: produce at least 25 experiments you can try with a reasonable budget and a modest
time frame. Not all of the 25 will be winners. However, 10% to 20% of the proposed experiments
“will be first-rate.”
Build Prototypes
Experimenters build (physical or virtual) models that are needed to conduct an experiment. Models
can take on many forms:
• physical objects (a clay model of a car)
• simulation models (mathematical representation of an engine)
• mock-ups (bank branches made out of Styrofoam, screenshots of web interfaces)
• role-play (service interactions)
Always start with low fidelity models!
The landscape for innovation is changing. Digital tools for experimentation (e.g., simulation, online
A/B testing platforms) are now widely available, thus removing the cost bottleneck. These tools not
only slash cost and time but they also make possible “what-if” experiments that, up to now, have been
either prohibitively expensive or virtually impossible to run.
Test Prototypes
To minimize biases and increase reliability further, companies conducted blind tests, which help
prevent the so-called Hawthorne effect: the tendency of study participants to modify their behavior,
consciously or subconsciously, when they are aware that they are part of an experiment.
Also avoid experiment creep, which occurs when an experiment drags on too long, costs too much
or lacks clarity about which sources of uncertainty are being tested. It often occurs when the people
running the experiment become vested in its success, lose objectivity and cast their results in the most
favorable terms possible.
Learning
The organizational culture must be aligned with scope of experimentation.
IDEO example:
Encourage “to fail often to succeed sooner” ; advocate the development of cheap, rough prototypes
that people are invited to criticize; create a playroomlike atmosphere; “Tech box” of hundreds of
gadgets and curiosities that designers routinely rummage through, seeking inspiration
Creativity should be used, during the experimentation process, during the Understanding phase, Build
& Test Prototypes phases.
Abduction
Abduction outside design has been defined as is a form of reasoning involved in both the generation
and evaluation of explanatory hypotheses and theories.
Abduction is the "logic of what might be," and while this certainly serves to embody this logic in the
context of design, it isn't entirely accurate. Instead,
abduction can be thought of as the argument to the best explanation. It is the hypothesis that makes
the most sense given observed phenomenon or data and based on prior experience.
The conclusions from an abductive argument might turn out to be false (like in an experiments), even
if the premises are true
Deduction: It starts with a general theory or hypothesis and uses it to predict specific outcomes.
Example: All men are mortal. Socrates is a man. Therefore, Socrates is mortal.
Induction: Observes specific instances and generalizes them into a broader theory or hypothesis.
Example: The sun has risen in the east every morning so far. Therefore, the sun will rise in the east
tomorrow.
Abduction: Begins with an observation and then seeks to find the simplest and most likely
explanation.
Example: The ground is wet. If it rains, the ground usually gets wet. Therefore, it probably rained.
Abduction, in the experimental process, is usually used to develop hypotheses and in the learning
phase (helps in understanding the results of the tests and critically making sense of them).
Experimentation Mindset
To conclude, we can remark that Design helps in understanding the context, prototyping new what-
ifs (through abduction) and with curiosity, both at the individual and organizational level. In turn, the
experimentation mindset aims at reducing uncertainty, learning from failures and helps in accelerating
the innovation process.
New Product Development process: coordinated activities to have a new product (good or service)
that has a value for the customer. Chain of stages that a firm uses to conceive, design, manufacture,
communicate and sell a product.
Traditional Approaches to PM
Waterfall Approach
Linear and sequential process, where each phase depends on the deliverables of the previous one.
Stage-Gate Model
A series of predefined stages and gates (decision points). At each gate, project stakeholders review
progress, assess risks, and decide whether to continue, modify, or halt the project. Each stage has
specific deliverables that must be completed and approved before moving to the next stage.
Pros: Iterative learning and refinement at each stage; clear milestones and deliverables
Cons: Time and resource consuming; too rigid for highly dynamic environments
Agile Approach
Agile is a set of rules and guidelines defined by Agile Manifesto in 2001 by industry leaders.
Agile focuses on iterative development, customer feedback, and flexibility, contrasting with the
rigid, linear structure of traditional methods.
Pros: Flexibility and adaptability of changes throughout the project; iterative learning after each
review
Cons: Significant cultural shift in how teams work and collaborate; difficult to predict project
timelines and budgets accurately
Agile approach should be preferred to stage gate when the project is not critical, the developers
have a high grade of experience (senior), the product requirements are changing very often. Also,
when the team size of the project is small and when the company culture responds to change. If project
is extremely important, with juniors developers, stable requirements, large team sizes and the culture
demands order, then stage-gate is to be preferred.
Also, different conditions should be considered in order to see if an Agile approach is applicable.
Here are a few examples of favorable and unfavorable conditions:
In traditional project teams there is a hierarchical structure, with the pm/ team leader at the top and
the others down, while in agile project teams all are equal (circle structure), the team is self
organizing, and there is only a servant leader/ facilitator.
Main Forms of Agile Approaches
Lean Development
Originated from the adaptation of lean manufacturing to software developed.
Kanban
A scheduling system for lean manufacturing developed in Toyota.
Scrum
Scrum is an agile team collaboration framework.
Scrum Team
The team model in Scrum is designed to optimize flexibility, creativity and productivity.
Product Owner
Role and task of the Product Owner:
• Clearly expressing Product Backlog items
• Ordering the items in the Product Backlog
• Optimizing the value of the work the Development Team performs
• Ensuring that the Product Backlog is visible, transparent, and clear to all, and shows what the
Scrum Team will work on
• Ensuring the Development Team understands items in the Product Backlog to the level
needed.
Scrum Master
The figure of Scrum Master:
• Finding techniques for effective management
• Clear and concise Product Backlog items
• Understanding product planning
• Understanding and practicing agility
• Facilitating Scrum events as requested or needed
• Removing impediments to the Development Team’s progress
• Coaching the Development Team in self-organization and cross-functionality
• Planning Scrum implementations within the organization
Development Team
The Development Team consists of professionals who do the work of delivering a potentially
releasable Increment of “Done” product at the end of each Sprint.
The Development Team is:
• Self-organizing
• Cross-functional (specialized skills and areas of focus)
• No titles for Development Team members other than Developer
• No sub-teams in the Development Team
Optimal Development Team size is small enough to remain nimble and large enough to complete
significant work within a Sprint. Rule of thumb: between 3 and 9 people.
The Process
Kick-Off Meeting
Each scrum project begins with a kick-off meeting. This is the most extensive meeting in the process
as the initial project backlog needs to be created and the project team introduced.
Main goals:
• An overview of the project and the goals
• Who will be working on the project
• Creating the project backlog
• Determining which features to work on
• Getting on the same page
User Story
A user story is a very high-level definition of a requirement.
• Stakeholders and team write user stories
• Use the simplest tool
• Non-functional requirements
• Remember non-functional requirements
• Indicate the estimated size
• Indicate the priority
• Optionally include a unique identifier
It is INVEST: Independent; Negotiable; Valuable; Estimable; Small; Testable
Product Backlog
It is an ordered list of everything that might be needed in the product and is the single source of
requirements for any changes to be made to the product .
The Product Owner is responsible for the Product Backlog, including its content, availability and
ordering
It is DEEP: Detailed appropriately; Emergent; Estimated; Prioritized
The Product Backlog is an ordered list of everything that might be needed in the product and is the
single source of requirements:
• Features
• Requirements
• Enhancements
• Fix changes to be made.
It is different from the final product.
Sprint
The heart of Scrum is a Sprint, a time-box of one month or less during which a “Done”, useable,
and potentially releasable product Increment is created.
Sprint Planning
• Time box: 4 hours (2 weeks sprint) / 8 hours (4 weeks sprint)
• Attendees: Scrum Master, Product Owner and Scrum Team.
What is to be developed? How it will deliver the Sprint Goal?
Daily Scrum
• Time box: 15 Minutes
• Attendees: Scrum Master, Product Owner(Optional) and Scrum Team
What have I accomplished since the last meeting? What am I going to do before the next meeting?
What obstacles are in my way?
Sprint Review
• Time box: 1.5 hours (2 weeks sprint) / 3 hours (4 weeks sprint)
• Attendees: Scrum Master, Product Owner and Scrum Team, All the Stakeholder/Sponsors,
Customers.
The Team demonstrates the Increment with focus on the Sprint Goal according to the Definition of
Done. Results of this meeting can be new requirements in the Product Backlog, and a new
prioritization
Sprint Retrospective
• Time box: 2 hours (2 weeks sprint) / 4 hours (4 weeks sprint)
• Attendees: Scrum Master, Product Owner and Scrum Team.
In the Sprint Retrospective the Scrum Team revises their way of work in the past in order to make it
more efficient and effective in the future. Whereas the Sprint Review is about the product, the Sprint
Retrospective is about the process.
Product Increment: is the sum of all the Product Backlog items complete during a Sprint. It is:
• Done
• Useable
• Releasable
The 5 main digital technologies can be divided into two macrocategories: DATA and Visual.
Data include AI, Big Data Analytics & IoT. Visual include, instead, Extended Reality and Addictive
Manufacturing.
Design practices are even more relevant in projects that rely on DATA Digital Technologies.
The use of DATA Digital Technologies in Design projects mainly increases the relevance of:
Prototyping, Recombining and Sense Making. They permit to identify unexpected patterns &
associations, capture contrasting phenomena and speculate through experiments.
For what concerns Visual Digital Technologies, instead, they impact more on Recombining, Sense
Making and Creating. They permit to recognize solutions, discover emerging behaviours and mitigate
cognitive biases.
This all leads to Ambidextrous Thinking.
Ambidextrous Thinking says that, while Design Thinking helps in empathizing with users, framing
the addressed problem and abducting desired futures, Digital Thinking copes with identifying
unexpected associations, mitigating cognitive biases and supporting speculative experiments.
There is a double perspective to consider in this context.
1. Empathy 2.0: in a world more and more digital where data are created every seconds
traditional way of ethnography do not work
2. Autonomous Define: machine learning can enable process learning without explicit computer
programming
3. Support Digital Creativity: algorithm can support the creative process and enable the
creation of futuristic solutions
4. Living the Future: new digital prototyping techniques can support the immersion of the
designers in the future of their creations
5. Live testing: with new digital solutions available testing can be done live without the need to
wait
Supporting Digital Transformation through Design
The second one is Supporting Digital Transformation through Design. In this case, Design
Thinking tools are used in the process, where the scope is enabling digital technologies and supporting
digital transformation.
Let’s take a look at how design & digital perspectives interact with each other. There are 2 solutions:
design-driven and technology-driven approaches. They do not exclude one another.
Technology enables new features, can monitor new actions and can even provide extended reality.
Design, instead, shifts the focus on starting from something that is actually valuable from the users,
on empathizing with them, and thinks more in terms of experiences.