IDEO’s CEO Tim Brown spoke a bit about experience economics. He showed a lot of shiny pictures from their work on the Prada store, but I was more interested in two frameworks he discussed. The first is a pyramid that comes from the book “The Experience Economy” (I don’t know if the ‘birthday party’ example is from there, too, or was Tim’s example).
The second interesting idea is that in order for an experience to have an economics, it must fit these three criteria:
– the customer knows they had an experience
– the provider owns that experience
– the customer can tell others about that experience
Later on, in an unrelated panel discussion, ID professor John Heskett mentioned that the key core element that design brings to the business equation is “value creation.” Of all the things the businesses desire in their processes, what design can most obviously and directly influence is the creation of “value” to be added to the product or service. I’ve heard this argument before, usually related to Michael Porter’s “value chain.”