RMIT University
School ofAccounting, Information Systems and Supply Chain
BUSM4369 Accounting Business Design Project 1
Topic 2: Business and Design
Design in Business
Innovation in professions is driven by both academics
and practitioners.
The connection between academic research and academic
practice is the subject of ongoing debate
Business practice innovations have raised concerns about
‘creative business designs’ which fuelled corporate scandals
Academic researchers drive innovation in practice from different
perspectives which can also create significant design challenges
Design in Business
The profession Accounting Designer or Economics Designer or Finance Designer
or Marketing Designer or Logistics Designer or perhaps generically ‘Business
Designer’ do not appear to exist! Or perhaps exist but not been clearly defined.
Contrast with other design professions:
Is this because ‘Business Designers’ are not creative?

Are Business Practitioners creative?
Group Activity : 3 minutes to think of as many uses as
possible for a bulldog clip
Debrief
Individual Activity: 5 minutes to complete the image
Debrief
Examples of design in Business
Examples of IT innovations
• Email; internet; fiber optics;
Examples of Logistics innovations
• On-demand warehousing; blockchain (+IT); drones (+tech)
Examples of Business innovations
• Eg Nestle and Amazon
• Where is the impact innovation happening? Implications?

The challenge of managing innovation
A belief that designers, or creative people, cannot be “managed”.
Managers require survival, think linearly, problem-oriented, like to
adapt.
Designers prefer reform, think laterally, holistic view, experimental.
But company innovation cannot be left to solely designers.
To move an idea to profits, managers with adaptive skill sets must
work with designers with innovative skill sets. “Design must be
managed and can be managed” (UK Design Council).
In other words we need to manage creativity
Traits of Creative People that we manage
Cognitive style (Ref Silverstain et al p74)
The individual’s preferred approach for solving
problems can range from ‘adaptive’ [improve current
artefacts] to ‘innovative’ [create and implement new
artefacts] Innovation projects can require mix of both
To avoid delays, misunderstandings and conflicts managers
need to be aware and understand cognitive styles. Need to
get the ‘right’ blends of creativity.
Cognitive style (Ref Silverstain et al p74)
Adaptors
The more adaptive tend to focus on improving the current system, even
by leaps and bounds, within the problem definition or paradigm.
Adaptors seek solutions in tried and understood ways. Adaptors are
seen as precise, reliable, and methodical. They look at the problem and
want to solve it efficiently.
High adaptors tend to rarely challenge the rules and usually only do so
when assured of support.
Adaptors produce fewer ideas, but those ideas are more manageable,
relevant, sound, and safe for immediate use. Expect a high successrate
from these ideas.
Thomas Edison perfected existing paradigms discovered by others
Cognitive style (Ref Silverstain et al p74)
Innovators
The more innovative tend to focus on doing things differently, often
operating outside the parameters of the problem definition or current
paradigm.
Innovators are expected to question the assumptions behind the problem
at hand, and will often manipulate and redefine it. They are seen by
adaptors as undisciplined and prone to tangential thinking.
Innovators tend to view rules and structures as limiting or hindering
progress, and they want to solve problems in novel ways.
High innovators produce many blue-sky ideas that they consider exciting,
and they tolerate high idea failure rates.
Albert Einstein questioned existing paradigms which enabled him to
discover Theory of Relativity
FUNDAMENTAL ELEMENTS OF RESEARCH
• Adopters and Innovators undertake research to understand the user and the
problem or challenge that requires resolution.
• The research undertaken can follow the scientific track supported by theory
• A research activity consists of an IDEA(S) within a THEORY, a METHOD(S), and
a CONTEXT(S).
IDEAS – the persuasiveness and relevance of the formulation of the
research questions or hypotheses. This usually needs to be supported by
underpinning theory.
METHODS – the evidence gathering approach, and the carrying out of
methods of analysis and interpretation of results.
CONTEXT – the scope of the research project, both its ‘real world’
setting and its theoretical/conceptual perspective.
• Refining and building on existing concepts, and specifying the relationships
between concepts are the key activities in “scientific” research
Theory and how its interacts with empirical research
Established theories are drawn upon to provide the basis for:
Development of specific hypotheses (i.e., expected
relationships between variables)
Helping to interpret the findings and argue for their
generalisability, and
Helping to identify how the study contributes to the focal
literature.
The Logic of Science versus
the Logic of Design
The basic reasoning approach in problem solving is:

RESULT
(observed
outcome)
Examples:
Melting
ice
Solids turn to
liquids as
temperature rises
Ice needs to
be kept below
0 degrees C.
The Logic of Science
Deductive reasoning

The Logic of Design
Abductive 1 reasoning

= VALUE
(aspire to
create)
Abductive 2 reasoning

= VALUE
(aspire to
create)
Abductive reasoning involves coming up with the best (educated)
guess given the facts/observations (logic of design) rather than
following the logic of science
The Logic of Design
Response to Abduction 2
Framing: the creation of a novel standpoint from which a problematic situation can
be tackled.
Framing involves the complex creative feat of the parallel creation of a thing
(product, service, system) and its way of working. Designers need to come up with
proposals of ‘what’ and ‘how’ and test them in conjunction.
Start from the only ‘known’ in the equation, the value that needs to be created.
Then adopt or develop up a frame.
Initial framing activity is a form of induction, reasoning back from consequences.
Once a credible or interesting frame is proposed, the designer can move to
Abduction 1, designing a ‘thing’.
Rapid and repetitive prototyping then occurs.
Framing Dorst cont’d
Development of a Frame
Is the general implication that by applying a certain
working principle we will create a certain value” p.524
Does the ‘ thing’ and the ‘working principle’ perform well
enough to create the value
“Frame analysis” is a study of how practitioners frame
(e.g. understand and state) the problems they deal with,
and the roles they assume.
Developing Frames
Frames are a ‘ sense making tool’
“ captures the underlying occurrences, events, facts,
situation, circumstance, experiences, cases,
incidents, appearance, things” to identify a theme.
Developing Frames (cont.)
 Framing drills down into the user’s problem to identify its root which is discovered from
information contained in the Empathy Map (next week)
 Different users or stakeholders can have different perceptions of what the problem means to
them.
 Frame the problem by asking ‘why does it matter’ to get to the root of the problem. This may
require more than one iteration or expression of the problem.
 Express the frame as a ‘problem statement’ after the root of the problem has been discovered.
 If there is no clear response to the question ‘why does it matter’ during the iteration process,
it could be due to not clearly understanding the user’s problem in which case aspects of the
Empathy Map need to be reviewed to improve understanding of how the problem affects the
user, or
(ii) you have discovered the root to the problem and can now complete the problem statement.
The problem statement keeps the design team focused on ideating and delivering a solution that
provides a benefit to the user.
Framing the Problem
Problem examples:
Homeless people on the city streets
Contract cheating
Relieving travel congestion in CBD
other
1.What is the value to the user?
2.What is the solution that provides that value?
3.What are the frames that could be used? i.e from what perspectives can we
see the problem? Each perspective of the problem represents a frame.
4. What are the working principles of each frame?
Framing the problem (cont.)
Framing Example – Contract Cheating
Contact cheating arises when a student pays money to a third party to complete part or all of the
student’s assessment, for example, an assignment. Contract cheating is now a criminal offence for the
‘contractor’ but not the student. However if caught, the student faces disciplinary action by the
University.
Stakeholder (user): University (taking a University perspective)
1st iteration: contract cheating is not fair because it brings the University into disrepute
Why does it matter?
2nd iteration: contract cheating is not fair because the value of degrees awarded by the University
will be impaired
Why does it matter”
3rd iteration: Contract cheating devalues our degrees which reduces enrolments and graduate
employability.
Framing the problem (cont.)
Problem Statement (for the University): Contract cheating impairs the
University’s reputation which results in lower enrolments and graduate
employability. Our solution to eliminate contract cheating would require
students to complete all written tasks on a university approved document
template that is electronically tagged to the student’s nominated device. (note
the second sentence represents an ideation factor which we will address later
in the course)
In this example, the University has taken a regulatory perspective to
resolving the problem. Is a regulatory perspective the only approach?
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RMIT University©2010
Problem statement: Contract cheating impairs the University’s reputation which results in lower
enrolments and graduate employability. Our solution to eliminate contract cheating requires students to
complete all written tasks on a university approved document template that is electronically tagged to the
student’s nominated device.
Value: Credible University Degree
Frame: Regulation
Themes Working Principles

Framing the problem (cont.)
• Can we change the Frame?
i.e instead of looking at this as a regulatory problem can we look at this from
another perspective?
• In other words can we rephrase the problem statement to reflect another frame?
Framing the problem (cont.) The Thisproblem case study situation is adapted centres fromon the entrenched article: ‘The and core seemingly of Design intractable thinking and issues its associated Application’ with By Dorst, an entertainment K., 2011.
quarter in a metropolis. This particular area with its bars and clubs attracts about 30,000 young people on a good
night. The issues include drunkenness, fights, petty theft, drugs dealing and, later in the night, sporadic violence
particularly in laneways near the main venues. Over the years, the local government has been using ‘strong arm
tactics’, increasing the police presence and putting in CCTV camera’s. Clubs have been required to hire security
personnel. All this visible extra security has made for a grim public environment, and the problems have persisted.
Patrons were not having a good time because of these strong‐arm tactics and other factors such as transport and
inability to gain entry to venues aggravate these issues. For instance peak time for patrons coming into the district is
1am. Last train out of the district is at 1.20am. Train services resume at 6am. This means there is no public transport
between 1.20 am and 6am. The other alternative is getting a taxi or a ride share which takes about 2 hours to obtain.
It is therefore difficult to leave the district once there. The next train station has trains that run throughout the night
and is a 20 minute walk from the district. Another aggravating factor is that patrons that have visited a venue
sometimes go back out on the street to enter another venue only to discover that they have been denied entry or the
queue for the next venue is too long and so end up wandering the streets with nowhere to go and nothing to do. This
leads to boredom, frustration and aggression.
Required:
The local council adopted a ‘law and order’ approach to manage the problem. How might the local council frame this
problem?
Problem statement: Antisocial behaviour by bar and club patrons has increased the
crime rate in the entertainment centre of whatever district . Our solution to decrease
the crime rate and keep the community safe is to increase security.
Value: Safe community
Frame: Law and Order

• The law and order approach did not work. Is there another
perspective we can adopt?
• This requires restating the problem statement in the context of a
revised frame.
Problem statement: Antisocial behaviour by bar and club patrons has increased the crime rate in
the whatever district . Our solution to decrease the crime rate and keep the community safe is to
provide entertainment safely and increase patron care.
Value: Patrons have a good time in a safe environment
Revised Frame: Organising a music festival
Review problem from a different perspective

Framing Exercise
Problem Statement: Student attendance at career/employment sessions is low. This reduces employment
and career opportunities for our students. Our solution to increase employment and career opportunities
would be to increase event promotion.
Value : Improve student employability and career opportunities
Frame: Organising student career/employment information sessions
Required: Identify at least an additional two themes, in addition to Communication, to support the frame.

Framing Exercise Solution Template

Can we change the Frame? That is, can we look at this as something else other than
an Information Session? How about organising as a happy hour to increase student
attendance? ie many people attending one place looking to increase value through
socialisation .
Required: Reconstruct the Frame as ‘organising a happy hour’. You may need to
redefine the ‘problem statement’ and ‘value’ proposition.
Framing Exercise extended
Framing Exercise Extended Solution Template
Problem statement: Student attendance at career/employment sessions is low This reduces
employment and career opportunities for our students. Our solution to increase employment
and career opportunities would be to increase student socialisation.
Value: discover employment and career opportunities.
Revised Frame: Organising student happy hour

What is the value? Discovering and understanding the value
that needs to be created
Need to identify and understand our users (stakeholders). Watch video ‘involving
customers’ on Canvas to understand the value they aspire to gain.
This means we need to understand the value to be created from users perspective
Manage stakeholders to identify those persons who have an interest in your innovation
project . Interest can be positive or negative in any size organisation.
Stakeholders who are accepting vs stakeholders who are likely to resist leads to uncertainty
and possibly conflict about what is or can be the ‘true’ value.