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Deepa Prahalad - Predictable Magic: Unleash the Power of Design Strategy to Transform Your Business

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Companies invest fortunes on innovation and product strategy. But, by some estimates, 80% of new products fail or dramatically underperform every year, though a few rare products succeed brilliantly. Why is this the case? Their creators have seamlessly integrated corporate strategy with design. They dont deliver utilitarian objects: they craft rewarding, empowering experiences. To outsiders, this looks like magic: incomprehensible, and impossible to reproduce. But it isnt. Predictable Magic presents a complete design process for making the magic happen -- over and over again. Veteran industrial designer Ravi Sawhney and business strategist Deepa Prahalad introduce Psycho-Aesthetics, a breakthrough approach for systematically creating deep emotional connections between consumers and brands. Step by step, the authors cover everything from research to strategy, implementation to consumer experience. They also demonstrate Psycho-Aesthetics at work in case studies from some of the worlds top companies, including Sprint, Medtronic, Amana, and Hyundai. Youll see how these great companies have used Psycho-Aesthetics to go beyond the utilitarian (or even the merely beautiful), to build products that powerfully connect with people touch them move them... time and again.

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Predictable Magic Unleash the Power of Design Strategy to Transform Your Business - image 1

Business Innovation Insights (Collection), 2/e

Luke M. Williams
Deepa Prahalad
Robert Brunner
Ravi Sawhney
Johnathan Cagan
Craig M. Vogel

Predictable Magic Unleash the Power of Design Strategy to Transform Your Business - image 2

Vice President, Publisher: Tim Moore

Associate Publisher and Director of Marketing: Amy Neidlinger


2013 by Pearson Education, Inc.

Publishing as FTPress Delivers

Upper Saddle River, New Jersey 07458

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

ISBN-10: 0-13-345790-7

ISBN-13: 978-0-13-345790-2

For more information, please contact us at

Contents

Design is the "in" mantraso what does this mean exactly and why do you care?

How Michael Dell got egg on his face

Why "design or die" should be your new mantra

Welcome to "customer experience supply chain management."

Who are you?

What do you do?

Why does it matter?

Does your company matter?

Three questions you really have to answer truthfully if you care about your future

Lessons from some big name hits and misses

8 more questions you need to know the answers to

Would the world be a darker place without you?

What design can do for you

Dont just play the gamechange the game!

How design communicates with people

How the design of products and services creates an emotional connection with your customers

Using design to create a relationship with your customer that matters

How you use great design to reinvent an industry

How great design builds bulletproof brands.

Design as a total concept

How iconic design-driven companies behave

A look at what your company needs to do to be design driven

How companies like Nike, Apple, BMW, and IKEA behave and how design is embedded in their culture

The role of research

Why a little research is good and more is mostly bad

Using talent to turn data into great design

Why usability doesnt equal useful

How usability testing can destroy the soul of a design.

Why your brand is not what you say it is

What your brand actually is and who says so

How your brand is a living thing

Where your brand lives (and its not at your corporate headquarters)

The role of design in brands built to last

How Coke almost lost it

How to communicate what your brand is about.

Why you never want to have a day like Zhang Ruimin

Products as portals to experience that matters to customers

How Home Depot got a new tag line

Fuego and how to build a better barbeque

How you use design for "customer experience supply chain management"

How to design a great experience with a consistent promise across multiple touch points.

How to make sure that theyre saying the right thing

What is a design language?

Why is it important?

How you actually create and manage your companies design language

Thinking strategically

Effective design strategy

How to think about design as a business weapon

Building your product brand.

Why good design is everybodys job

The importance of culture to design

Why changing culture takes time

Why we need risk support instead of risk management

Why risk should be understoodnot avoided

How innovative design can define new ground that is valued by your customers

How your company can use design to carve out new space

How to manage design from the top

Why great design requires faith and commitment

How leadership is essential to great design

How to manage creative resources to get the best from them.

Predictable Magic

Unleash the Power of Design Strategy to
Transform Your Business

Deepa Prahalad and Ravi Sawhney

Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Wharton Editor: Steve Kobrin
Executive Editor: Jeanne Glasser
Editorial Assistant: Myesha Graham
Operations Manager: Gina Kanouse
Senior Marketing Manager: Julie Phifer
Publicity Manager: Laura Czaja
Assistant Marketing Manager: Megan Colvin
Cover Designer: Hojin Choi
Managing Editor: Kristy Hart
Project Editor: Anne Goebel
Copy Editor: Apostrophe Editing Services
Proofreader: Sheri Cain
Senior Indexer: Cheryl Lenser
Senior Compositor: Gloria Schurick
Manufacturing Buyer: Dan Uhrig

2011 by Pearson Education, Inc.
Publishing as Prentice Hall
Upper Saddle River, New Jersey 07458

Wharton School Publishing offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com. For sales outside the U.S., please contact International Sales at international@pearson.com.

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing July 2010

ISBN-10 0-13-702348-0

ISBN-13 978-0-13-702348-6

Pearson Education LTD.
Pearson Education Australia PTY, Limited.
Pearson Education Singapore, Pte. Ltd.
Pearson Education North Asia, Ltd.
Pearson Education Canada, Ltd.
Pearson Educacin de Mexico, S.A. de C.V.
Pearson EducationJapan
Pearson Education Malaysia, Pte. Ltd.

Library of Congress Cataloging-in-Publication Data:

Prahalad, Deepa, 1972
Predictable magic: unleash the power of design strategy to transform your business / Deepa
Prahalad, Ravi Sawhney.
p. cm.
ISBN 978-0-13-702348-6 (hardcover : alk. paper) 1. Strategic planning. 2. Technological
innovations. 3. Competition. I. Sawhney, Ravi, 1956- II. Title.
HD30.28.P7 2011
658.4012dc22
2009054414

For my parents, who taught me to ask questions and

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