The Choice Architecture enables the management to make “tough choice” about innovation flavors and provide decent customer taste.
Choice architecture as a sort of personalized solution architecture, is the process of developing customer-centric solutions based on clearly-defined guidelines, predefined processes, and best practices that describe how the components and standards of the business work cohesively to provide personalized decisions by providing choices or options to fit for the needs of users and customers, with the ultimate goal to achieve people-centricity.
Art of discovery and options: Due to unprecedented convenience brought by information technologies, customers become more selective, today’s business leaders, especially in the consumer intensive industry need to become “Choice Generator,” provide choices for users and customers on how to solve their issues from their lens; provide choices for talented employees and internal users on how they would like to get the work done efficiently. A choice architecture is an instrument to reimagine how the organization needs to be reimagined to drive such transformative changes; restructured to optimize people-centric business processes, and realigned to expedite changes. In specific, a choice architecture can work to provide a framework that facilitates communication, explores the art of discovery and options, fosters innovation through education and reduction in stringent rules, lubricates processes, and embraces the new possibilities and alternative ways to do things.
Perhaps by pursuing abundant choices and options, we are shifting from the knowledge economy to the creative economy. Choice architecture can provide choices for businesses about communication content, the method and use their language support such customer-centric innovation only if it undergoes a paradigm shift-being experimental to try new things and exploring the “art of possibility,” Organizations become agiler to adapt to change and more information savvy for delivering real-time, intuitive products or services to delight customers. The architecture facilitates effective communications by listening to the folks in the trenches and being willing to toss old prejudices aside to actually evaluate new ideas based on merit as well as helping to solve unforeseen issues for increasing people-centricity.
Provides structure to manage people-centric innovation life cycle: Innovation has been misunderstood as mysterious or unmanageable sometimes, in fact, innovation is about how to manage creative/novel ideas to achieve its business value. People-centric innovation puts customers or varying stakeholders at the center of everything they do and provide choices (new features, personal taste, etc.) to fit their needs. To continuously innovate within organizations, individuals and groups need to connect and communicate more openly, easily and effectively. A well-designed choice architecture helps to eliminate confusion, apply a holistic view, align resources and talent, and take customized approaches to each critical problem, and make the continuous adjustment. It helps to orchestrate the business interrelationship between people and process, facilitate the planning and communication of innovation.
Choice architecture can make a contribution, for better communication, governance or knowledge management to enhance a healthy people-centric innovation cycle. It seeks to represent the architecture of an organization in terms of information, process, capability, and performance, either as it exists or as it is intended to be. Innovation is equivalent to sustainability and resilience, not for recovery only, it’s more long term driven. Engaging customers by providing simplified and intuitive products or services with personalized features and options on an ongoing basis to see how their goals are achieved is a good way to orchestrate a people-centric business. All the pressures and processes that drive business management toward a profitable, efficient operation tend to get in the way of developing the innovations that can actually delight customers and transform the business.
The Choice Architecture enables the management to make “tough choice” about innovation flavors and provide decent customer taste: There are hard innovations such as process/product/service/business model innovation; there are soft innovations such as leadership/culture/communication innovation, etc. There are need-based innovation, marketing-driven innovation, and technology enabled innovation; there are open innovation whereby a company uses the ideas, sources or help of people outside the company; close innovation whereby a company uses its internal R&D or talent across-company for managing innovation, etc. The company has to determine what can be open and what can be closed; “openness” and “closeness” are decisions relating to the architecture of the new product generation model. A comprehensive architecture encompasses at least some interfaces of the current/target ecosystem, brings the systems understanding of relationships, ecosystems, market dynamics, and the connections between related business functions to enhance the scientific discipline underneath it.
Thus, an architecture integrates the art and science for unpuzzling innovation serendipity, Customer-centric innovation often happens at the intersection of people, process, and technology; Choice Architecture is an effective tool for helping company leaders to orchestrate the organizational interrelationship between people and process. It’s input can be used to direct resources and attention to strengthening innovation competencies; it would look for leverage within the ecosystems, industries, and domain knowledge for discovering great opportunities for innovation and increase the probability for innovation success. It can also support effective communication to not only connect innovative dots but multiply them and help capture insight through them; amplify collective human capabilities, filter voice from noise, order from chaos, shape choice-enriched solutions to implement resulting innovations, and then further extend into innovation hubs or clusters.
The business era upon us is the era of empathy, choices, collaborations, and personalization. People-centric businesses are fluid, flexible, and intelligent in knitting all necessary elements together into great customer experience and drive a seamless paradigm shift. A clearly designed choice architecture brings enriched knowledge, technology/process aspect, a broader perspective on how to explore the customers’ need, developing a robust innovation pipeline to improve, tailor their taste to provide people-centric solutions, with a measurable and sustainable increase in effectiveness and customer value creation.
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