Designabetterbusiness preview

Page 1

NEW TOOLS, SKILLS AND MINDSET FOR STRATEGY AND INNOVATION

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Written by Patrick van der Pijl, Justin Lokitz, and Lisa Kay Solomon Designed by Erik van der Pluijm & Maarten van Lieshout

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P

RE

HOW TO

W E I V CONTENTS INTRODUCTION

P08

PREPARE

P24

POINT OF VIEW

P46

UNDERSTAND

P82

Design better business and the double loop Prepare your team, your environment, and how you work Be a rebel, develop your vision, create design criteria Understand your customer, context and business

IDEATE

P124

PROTOTYPE

P152

VALIDATE

P180

SCALE

P214

INDEX

P254

Learn to ideate, expand your ideas, and select ideas Bring ideas to life, sketch and make prototypes Find the riskiest assumption, experiment, and pivot when and how to scale, investment readiness level Index, the team, and acknowledgments

8 48 20 7 29 36 >150

CHAPTERS CASE STUDIES TOOLS CORE SKILLS DESIGNERS HACKS VISUALS


USE THIS BOOK FILLED WITH PERSONAL STORIES AND EXPERIENCES FROM 29 DESIGN PRACTITIONERS AND THOUGHT LEADERS SUCH AS... STEVE BLANK

SERIAL ENTREPRENEUR, AUTHOR, LECTURER P.243

DOROTHY HILL

VP OF STRATEGY, ING BANK P.63

ROB FITZPATRICK

AUTHOR, THE MOM TEST P.89

TOOL ICON LEGEND PERSONAL This tool requires personality TANGIBLE This tool helps you build something GENERATE OPTIONS This tool helps you to create options CREATE FOCUS This tool helps you to decide and select

We’ve designed this book with you in mind! Unlike most books, this one can be read in several ways. For one, you can read this cover-to-cover. The chapters build on each other. You can also scan for things that interest you, like new tools and skills. Additionally we’ve

NORMAL SESSION Normal work session PRESSURE COOKER High intensity session TEAM SIZE Small or large team sizes REVISIT How often do you need to revisit this

included fast passes in this chapter (page 22) in case there is something specific you want to learn about right now.

W ble E I V l ta d

E visua ts an R P a en d t ith on en W f c leg o


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FAST S E S S PA SW WA N T Q U I C K A N

E R S?

tracks so with some fast u o 
y ed d vi ro p We have r your in line waiting fo d an st to e
 av h you don’t the relwill guide you to ks ac tr st fa e es future. Th om the studies. Learn fr se ca r o s, ill sk , ls evant too it now. thers and apply experience of o

I WANT TO DESIGN A STRATEGY

to take my team to I need a plan of action te. our desired future sta

PAGES: STEPS: l(s) de mo ess current busin

Understand your serving your customers by ob and understand 86 ions and asking quest ur yo ng ati cre view by Develop a point of® vision and transform your ion vis ps ste ld bo 5 58 s ate seeing if it reson into a story and 142 ns tio model op Ideate new business 152 propositions ue val w ne e Prototyp

O I WA N T TO DL A N N I N G BUSINESS P and readsheet beyond sp ith my team. ve o m to I want nning w usiness pla explore b

PAGES: in

operate STEPS: ntext you model current co Map the nt business your curre d n ta rs e Und customers ur (future) yo e rv se n b O ny’s visio ns ur compa odel optio Revisit yo n si u ess m b re tu fu Design rototype ideas to p Propose

110 114 98 56 142 152


I WANT TO DO A SWOT OF MY BUSINESS

I WANT A STRONG & SHARABLE VISON

I want to develop a North Star with my team so we know where we are hea ded.

UNDERSTAND INTRODUCTION BUSINESS FAST IS DESIGN PASSES

05

sses, What are the strengths, weakne business? opportunities and threats for my

PAGES: STEPS: iness 110 r bus Understand the context of you el(s) mod s ines bus r you Understand sses kne wea and s ngth stre ine Determ

86 117

STEPS: PAG

ES: Develop your point of view and make a cover story vision® with you r team 64 Validate your cover story inand outside your company 180

OVATE N N I O T T N A W I ESS N I S U B Y M W O /G R t we do shortcuts, bu There are no tracks so you st fa with some provide you waiting for stand in line don’t have to your future.

I WA N T TO W O R K AS A STARTUP Here’s how you ca n work lean and me an when you want to bring your idea to market. Learn from start-up s.

STEPS:

PAGES: Prepare your po int of view Understand: obse 48 rve and ask questions (!) 86 Ideate your busin ess model options 142 Sketch a low and hi fidelity prototyp e 172 Validate, validate , validate 180 Tell stories durin g your journey 72

STEPS: e Loop bl

Do the Dou

PAGES:

24

USE A FAST PASS OR PREPARE W s? FOR A FULL EVIE answere you JOURNEY PR d fast ses gtivcut! ee as or N st p sh a Fa


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UNCERTAINTY: YOUR SECRET WEAPON

E R


INTRODUCTION

UNCERTAINTY

The world has changed. Not only are consumer

on doing rather than on planning and prediction.

habits, technologies, and other trends uproot-

Better businesses marry design and strategy to

ing once-thriving businesses, entire markets are

harness opportunity in order to drive growth and

shifting and emerging out of the uncertainty and

change in a world that is uncertain and unpredict-

unpredictable nature of today’s network econo-

able.

07

my. Interestingly (and infuriatingly to some), many of the companies leading the charge – and the

This book will provide you with new tools, skills,

change – did not exist two decades ago. It’s not

and a mindset to harness opportunities born of

that these new players are just lucky or employ

uncertainty in order to design better businesses.

smarter, more capable people. So, how is it that

We’ve included tons of real-world examples of

they’ve found gold in some of the most unlikely

people who have mastered the fundamentals

places? In a word: design.

of design, as well as case studies of companies that have created change using design as the

The world around you – and your business – is filled

Design is fundamentally about enhancing the way

underlying foundation for decision making. And,

you look at the world. It’s a learnable, repeatable,

just as design is a repeatable process, this book

disciplined process that anyone can use to create

is meant not only to guide you on your design

unique and qualified value. Design is not about

journey, but as an ongoing reference to help you

throwing away the processes and tools you have.

scale the design beyond one project or product

In fact, quite the opposite is true. Just as design

to an entire company.

has enabled countless upstarts to create new

with uncertainty. But, with-

business models and markets, design will also

in that uncertainty exist

help you decide when to use what tools in order

enumerable opportunities to design (or redesign)

to learn something new, persuade others to take a different course, and at the end of the day, make better (business) decisions.

game-changing businesses.

Most of all, design is about creating the con-

These opportunities are

ditions by which businesses thrive, grow, and

there for the taking, if you know how to look for them.

evolve in the face of uncertainty and change. As such, better businesses are ones that approach problems in a new, systematic way, focusing more

y YOU’VE GOT nt W i a E t EVERYTHING TO GAINEVI uncer f our

PR g withe coreology. o

d n ali at th tho e D is me


W E I VDESIGNER: A REBEL WITH A CAUSE E R P

THE 7 ESSENTIAL SKILLS

IT ALL STARTS WITH THE CUSTOMER.

THINK AND WORK VISUALLY!

DON’T FLY SOLO. YOU ARE NOT SMARTER THAN EVERYONE ELSE.

Observing customers to

Working visually helps you to

Gather different insights by

Stories have a clear beginning

understand them will give you

see the bigger picture, gain

working together. Connecting

and end, and most likely they

fresh insights into their needs.

clarity on complex topics,

the brains in the room and in

have heroes your audience can

You must ask the right ques-

create a visual anchor for your

your market will enable you to

connect with. Cool stories stick.

tions to get the answers you

strategic conversations and

uncover hidden opportunities.

Cool stories will be told by oth-

seek.

engage with your audience.

TELL STORIES AND SHARE THE EXPERIENCE.

ers. Cool stories will spread.


INTRODUCTION

DESIGNER: A REBEL WITH A CAUSE

09

KEEP IT SIMPLE.

SET UP SMALL EXPERIMENTS AND LEARN SHIT.

EMBRACE UNCERTAINTY. IT’S CANDY FOR THE BRAIN.

Just start. Don’t try to build the

Every little iteration and

Except for change, there is no

final product. Don’t add

trial will net tons of useful new

such thing as certainty in busi-

features that don’t solve real

insights – things you wouldn’t

ness. Accept this and harness

problems.

have learned if you just started

opportunities from uncertainty.

building. Reality is different than what you assume.

W e7 s E I V e th kill

E crib tial s a R P es en as d ss ed r e e W st e ne ign o ou es m y d


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W TOOL TEAM CHARTER E I V

PERSONAL session

Now that you’ve put all of these unusual suspects and diverse characters in one room together, how will you all agree on the agree on your goals, expectations, and values? And how will you deal with challenging situations? Design a team charter together!

± 30 MIN

SIGN THE CHARTER

TEAM VALUES

You don’t always get to decide with whom you work with. Even if

Together, you’ll need to decide on the values your team upholds as

pressure cooker

you do, there’s no guarantee that you’ll be successful. Conflicts

part of its collaboration. These values will help form the foundations

of interest and differing values or goals often get in the way of a

for a successful team, which will make it easier to reach its goal

team’s progress.

while reducing confusion about the team’s objectives. What’s more, the charter will provide clear guidelines about how team members

3-5 people per group

A team charter will help you create a blueprint for the engine

will work together and what each person will contribute, which will

behind a project: a well-balanced team. As a co-created document,

help ensure the team moves forward and not backward.

the team charter will help clarify the team’s direction while establishing boundaries.

Some of the things you’ll want to include in your team charter are the following: team members; team goals, expectations and the

The team charter serves two purposes. Firstly, using the charter as

purpose for existing in the first place; team values; how the team

an inward-facing document, team members can point out why the

handles trouble and obstacles; who the team leaders are. Don’t be

team was established in the first place, what the main focus is, and

afraid to add things like “have fun!” and energy sources, like “team

GOOD TO KNOW WHO YOU’RE TRAVELING WITH!

what direction the team will take to

dinner once per week”. These will go a long way in helping the

achieve its stated goals. Secondly,

team gel.

as an outward-facing document, the charter can help to educate

Whatever form your team charter takes, just make sure you’re all on

managers and other organizational

the same page. In the end you want to have a team of people who

leaders about the focus and direc-

build off each other, not a group of people who need to do a job.

tion of the team.


PREPARE

TOOL

TEAM CHARTER

11 TEAM CHARTER CANVAS

DOWNLOAD Download the team charter template from www.designabetterbusiness.com

DESIGN A BETTER BUSINESS

EXPECTATIONS

TEAM MEMBERS

TEAM VALUES

DRIVER

TEAM GOALS TROUBLE OBSTACLES

CHECKLIST

ENERGY SOURCES

You defined the team goal You defined the driver, team members and values

BY DESIGNABETTERBUSINESS.COM

You defined obstacles and energy sources

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. http://creativecommons.org/licenses/by-sa/4.0 or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

TROUBLE What will you do when the shit hits the “van”? EXPECTATIONS What do the team members expect from each other in order to be successful?

TEAM MEMBERS Who is on the bus and what will each person individually bring to the team: e.g. role, personal core value, skills, personal slogan, character trait?

TEAM VALUES What are the values the team lives by? Are these values recognized by all team members?

DRIVER Who is behind the wheel? Who is navigating? OBSTACLES What could prevent the team from working together fruitfully and reaching their goal?

ENERGY SOURCES What generates energy in the group? What gets everybody running and going for the best results?

TEAM GOAL What is the goal the team wants to reach? When are all the team efforts successful?

You had everyone sign the charter

NEXT STEP

W to k E I V ols wor

E al To am ely R P su te tiv

Go get started with Point Of View!

vi ur fec 0 2 yo ef lp re he mo


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POINT OF VIEW


THE DESIGN JOURNEY POINT OF VIEW

INTRO

YOUR POINT OF VIEW P48

SKILL

DARE TO STEP UP P50

TOOL

5 BOLD STEPS VISION CANVAS P58

BE A REBEL

CASE

SHARING THE VISION OF ING BANK P60

DEVELOP YOUR VISION

TOOL

COVER STORY VISION® CANVAS P64

TOOL

DESIGN CRITERIA P68

DESIGN YOUR STORY CREATE DESIGN CRITERIA

TOOL CASE

nd W u o STORYTELLING CANVAS P74 IE ed ar op V E bas e Lo it R TELLING THE STORY OF AUDI P76 P rs bl use e u pt Do to a ch the how 7 &


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W YOUR POINT OF VIEW E I V Every design journey starts somewhere. Perhaps that somewhere is a brand new company searching for its sustainable (money-making) business model. Or maybe the journey is being taken by an existing business looking for new direction so it can stay competitive and grow. In every case, the journey you take will start with a point of view.

How to use a strong point of view to design a better business, read: “Zero to One” by Peter Thiel

Whether they’re about a market, or a customer, or a product or

To create change, you must start with your point of view, even

service, or even a competitor, we all have a point of view. Being

when the odds seemed stacked against you. Maybe you’re

at the center of the design journey, your point of view is your

thinking, “But it’s just my point of view! What changes could I

most valuable asset. It provides the litmus test for what’s real

possibly make based on what I think?!” You wouldn’t be wrong –

and what’s just a mirage. As a designer you are responsible for

or the first person – to think this. However, when you pair your

actively shaping your point of view based on what you learn

point of view with specific tools, skills, and a mindset to match,

along the way.

you absolutely create the change you’re looking for.

THE FIRST STEP IS ALWAYS THE HARDEST

BE A REBEL

Developing new business ideas from scratch can seem like a

If you’re looking to influence someone, especially someone you

daunting task. When you’re a startup, you have hope in your

need on your team to turn your point of view into a successful

heart that your company will become the big thing. You work

strategy, it may sound counterintuitive to say that you should be

hard at developing and selling your product – but often, the

a rebel. But, it’s precisely the rebel, and the points of view that

harder you work, the further away your away dreams seem to

she brings with her, that will serve as the catalyst for change.

be. When you’re an established business, you’ve been driving the

Being a rebel does not mean you must go against everything that

same executional strategy for many, many years. Your share-

your company or leadership stand for. Rather, being a rebel is

holders enjoy the fruits of your labor in the form of increasing

about coming to the table with a strong point of view toward the

share prices and dividends, and your board looks to past growth

future. You do not need to buck the establishment – but you do

for future strategy. However these past successes may become a

need to question the establishment and bring to the table those

burden as you try to steer your company into new waters.

big ideas that you feel in your gut are worth exploring.


POINT OF VIEW

INTRODUCTION

YOUR POINTY OF VIEW

49

LET YOUR VISION BE YOUR ROADMAP

conference room, or holding court in a bar, use anecdotes and

A strong point of view will serve as your catalyst for change. It is

stories to convey the points they are making? Though naturally

your vision for the future that will serve as the roadmap leading

talented speakers may do this somewhat instinctively, anyone

to the change you seek to make. People argue their points of

who does this well is deliberate about what stories they tell, how,

view over beers. Visions set direction (maybe so that you can

when, and to whom. To make your mark and gain the buy-in

buy even more beer with the money you’ll make in the future!).

you’ll need to explore your point of view. In other words, you’ll need to design your story.

Our definition of “vision” is different than what you’ll find in other books or articles. It’s not just a statement; it’s a rally cry.

But don’t let that worry you. Just as we are giving you new tools

The concept of vision is all-encompassing; it includes the sup-

to create your vision, we are also sharing great tools to help you

porting factors that make the vision real, the steps you need to

design your story.

take to realize the vision, and the challenges and opportunities that you’ll face on your way to achieving your vision. To make

DESIGN CRITERIA

your vision tangible and useful, this chapter lays out co-creative

Your vision points to a future state. Yet, it’s not just any future

tools that you can – and should – use with your team.

state. The changes you seek to make along your design journey likely must also meet a set of criteria, about what you must, could,

DESIGN YOUR STORY

should, or absolutely won’t do as you explore and evaluate options

When you enter that boardroom, or strategy meeting, or VC

for the future. These are design criteria. They provide both a foun-

pitch, what are you going to say? How will you sway people to

dation and clear boundaries to help guide your decisions along the

your point of view, or at least convince them to explore with

way. Your design criteria will be informed by the vision you create as

you? This is where stories make a big difference. Ever notice how

well as the context surrounding your organization. Similarly, the op-

the best speakers, whether giving a TED talk, presenting in a

tions you explore will be informed by the same design criteria.

5-bold steps canvas (this chapter) page 58 Design Criteria canvas Page 68

W ise E I V onc nd

Cover story canvas (this chapter) page 64

E nd c n a ar R P r a tio cle

Storytelling canvas (this chapter) page 74

a ea lan cal, les! l C xp cti p e ra am p ex


W E I V

TELLING THE STORY OF AUDI

P

RE

st brarnodng

A Team at Audi needed to obtain buy-in within the company to move forward with an idea for the future. The car world is changing rapidly and it was necessary to convince the company quickly. This was an important story to tell. Here’s how they approached it. DESIGN A BETTER BUSINESS

STORY TELLING C A SUBJECT

N VA S

AUDIENCE

GOAL

the future of transportation

drones

s businuessual as

private life in and outside car

RBUSINESS.COM

BY DESIGNABETTE

ational License. eAlike 4.0 Intern Attribution-Shar ons, ive Commons to Creative Comm ed under a Creat or send a letter ses/by-sa/4.0 This work is licens rnia, 94105, USA. mmons.org/licen http://creativeco Suite 300, San Francisco, Califo t, 171 Second Stree

options exist outside the car

freedom of choice

ng emeregci h t

more cars on the road

3. CONCLUSION

2. MAKE YOUR POINT

1. SET THE SCENE

BEFORE

getem th rd onboa

self driving cars

1 Fill i n the canvas as described on page 74-75. make sure you cover all areas.

companryleade ship

AFTER

inves new idteasin

2 sit together with visual artist to plot the sticky notes from the canvas on a (big) piece of paper. make a first sketch: are all the building blocks there? is it the right look and feel?


UNDERSTAND

BUSINESS IS DESIGN

51 self driving cars

more cars on the road

private life in and outside car

3 fi nalize the sketch. it will be a great conversation piece to substantiate and share your story. Audi opted for 1 big picture. you could also build a series of images, an animation or a slide deck using the canvas.

freedom of choice

E R P

e W as E c VI d

n w s a sho e e pl o m es t us s a ex udi w to ool 8 4 st ho e t th


W E I V

YOU NOW HAVE...

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RECAP

DRAFTED YOUR VISION AS A RALLY CRY

P58

DESIGNED YOUR STORY TO CREATE IMPACT

P74

YOUR FIRST SET OF DESIGN CRITERIA

P68

NEXT STEPS

OBSERVE & QUESTION

P88

Meet (potential) customers.

GO OUT OF THE BUILDING

P106

How do you currently add value for your customers.

What is the context you currently

(want to) operate in.

HOW MANY COFFEES ARE YOU WILLING TO DRINK WITH YOUR CUSTOMERS? GO BEYOND THE OBVIOUS.

on vision.

UNDERSTAND YOUR CONTEXT

IT’S NOT ABOUT THE ANSWERS. IT’S ABOUT THE RIGHT QUESTIONS.

P102

and test your assumptions

UNDERSTAND YOUR VALUE

IF YOU DON’T KNOW WHERE YOU ARE, HOW CAN YOU KNOW WHERE YOU’RE GOING?

P110

DON’T ASSUME YOUR TEAM MEMBERS UNDERSTAND YOUR BUSINESS MODEL.


POINT OF VIEW

RECAP

53

YEAH WELL, THAT’S JUST YOUR OPINION, MAN.

W ice n E VI s a r

E pter f yo d R P ha t o an a

u

is s y c ckl ing eps r t e e n Ev ch ear xt s l ne



NEW TOOLS, SKILLS, AND MINDSET FOR STRATEGY AND INNOVATION

WWW.DESIGNABETTERBUSINESS.COM This book is for all business leaders, aspiring entrepreneurs, corporate innovators, ambitious investors, social impact change agents, and enterprising students who want to create impact in the world, and improve their organizations while doing it. The world around you – and your business – is filled with uncertainty. But, within that uncertainty exist limitless opportunities to design (or redesign) game-changing businesses. These opportunities are there for the taking, if you know how to look for them. TURN UNCERTAINTY INTO OPPORTUNITY FOR YOURSELF, YOUR CLIENTS AND PROSPECTS.


FILLED WITH PERSONAL STORIES AND EXPERIENCES FROM 29 DESIGN PRACTITIONERS AND THOUGHT LEADERS SUCH AS...

DOROTHY HILL

VP OF STRATEGY, ING BANK

NANCY DUARTE

AUTHOR, PRINCIPAL AT DUARTE, INC.

ROB FITZPATRICK

AUTHOR, THE MOM TEST

DAN ROAM

AUTHOR, THE BACK OF THE NAPKIN

STEVE BLANK

SERIAL ENTREPRENEUR, AUTHOR, LECTURER


JOIN THE CONVERSATION NOW! WWW.DESIGNABETTERBUSINESS.COM DESIGN AS A DISCIPLINE

VISUAL PLAYBOOK

Bank, Audi, Autodesk, and Toyota Financial

These days successful companies don’t just

Design A Better Business is a visual playbook

Services, to small startups, incubators, and

manage their businesses, they design them.

about how to bring the accessible practices of

social impact organizations, Design A Better

Design is fundamentally about enhancing the

innovation and entrepreneurial growth into

Business provides a behind the scenes look at

way you look at the world. It’s is a disciplined

any organization. This practical guide contains

the best practices and pitfalls to avoid. Also

and iterative approach that marries creative

the full suite of road-tested business tools that

included are insights from thought leaders such

thinking and analytical rigor focused on creat-

support your teams from the earliest inception

as Steve Blank on innovation, Alex Osterwalder

ing relevant, intentional, unique value for real

of an idea to a validated road map.

on business models, Nancy Duarte on story-

people with real needs. When done right, it not

telling, and Rob Fitzpatrick on questioning.

only informs what the value is, but how it gets

CASE STUDIES AND PERSONAL INSIGHTS

delivered in a repeatable and viable way.

Detailing over 50 case studies and real life

What are you waiting for?

examples from large corporations such as ING

Let’s Design a Better Business!


TEAM OF AUTHORS

PATRICK VAN DER PIJL:

JUSTIN LOKITZ:

LISA KAY SOLOMON:

Patrick van der Pijl is CEO of Business Models

Justin Lokitz is an experienced strategy de-

Lisa Kay Solomon helps leaders design better

Inc. and producer of the global bestseller Busi-

signer and managing director of the Business

futures. A passionate design strategist and ex-

ness Model Generation. Patrick helps Board of

Models Inc. San Francisco office. 20 years of

ecutive educator, Lisa creates transformational

Directors, Top Leaders and Innovation Teams

experience managing business model strate-

leadership experiences at the MBA in Design

to innovate their business model and design a

gies, and always thirsty to learn (and do) more.

Strategy at the California College of Arts and

future strategy. Patrick is a demanded interna-

He leverages his experience across a wide range

Singularity University. She is the coauthor of

tional speaker and pioneer in the practice of

of industry sectors to help companies design

the bestseller Moments of Impact: How to

business visualization.

innovative, sustainable business models and

Design Strategic Conversations that Accelerate

strategies for the future.

Change (Simon and Schuster).

@PATRICKPIJL

PPIJL

@JMLOKITZ

JMLOKITZ

@LISAKAYSOLOMON

LISAKAYSOLOMON


& DESIGNERS

ERIK VAN DER PLUIJM:

MAARTEN VAN LIESHOUT:

JONAS LOUISSE:

Erik is founder and creative director at

Maarten van Lieshout is creative director and

Jonas, a visual thinker at heart, started as an

Thirty-X. He is passionate about visual

partner at Thirty-X. He has applied visual

entrepreneur and designer straight after receiv-

thinking and making complex things simple.

thinking at an early stage for a Dutch Idea

ing his MSc in Neuropsychology. He loves to

His background is in artificial intelligence,

factory making ideas visual and tangible. He

use his design and psychology skills to get his

computer games, and the startup scene.

always brings a new perspective to the table –

head around complex stuff and to get people

and stimulates others to get involved.

on the same page.

@MAARTENVL

@JONASLOUISSE

@EEEVDP

ERIKVDPLUIJM

MVLIESHOUT

JONASLOUISSE



PREORDER NOW WWW.DESIGNABETTERBUSINESS.COM/PREORDER

AVAIL ABLE STOR IN SEPT ES EMBE 19 TH R

DESIGN A BETTER BUSINESS MARKETING & COMMUNICATION

Marije Sluis: marije.sluis@businessmodelsinc.com


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