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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Design thinking and process transformation: synergy of these approaches</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Business Informatics Department</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Moscow</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Russian Federation</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>evvasileva@fa.ru</string-name>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Business Informatics Department, Financial University under the Government of the Russian Federation</institution>
          ,
          <addr-line>Moscow, Russian Federation</addr-line>
        </aff>
      </contrib-group>
      <fpage>0000</fpage>
      <lpage>0002</lpage>
      <abstract>
        <p>The new digitalization trend is a global transition to the study of customer experience. Modern conditions require the unification of the theory of business process management and the tasks facing the business. The author emphasizes that today it is necessary to manage personnel taking into account a competently built employee path in the company - “Employee Experience”. The work environment and human-centered business processes create a good psychological climate, which determines how the employee will be able to solve tasks, get business results, manifest and be focused on developing their talents. Transformation and continuous improvement should change the culture of the organization, create partnerships between management and staff to ensure the success of the changes. An approach to process transformation is presented. The stages of the process transformation are presented and described in detail, where the end of the transformation is the beginning of a cycle of continuous improvement of business processes that have undergone changes. The authors emphasize that Design Thinking techniques can be used to develop and reengineer not only products (in the usual sense, as a product or service), but also in principle technology of activity as such (processes). The authors showed how CJM, HWM, CurrentFuture-Barriers, etc. can be included in the reengineering process. The presented examples of the use of Design Thinking techniques for the design of business processes can be detailed after clarifying the specifics of a particular project, supplemented by other Design Thinking techniques.</p>
      </abstract>
      <kwd-group>
        <kwd>Process Transformation</kwd>
        <kwd>Design Thinking</kwd>
        <kwd>Visualization</kwd>
        <kwd>HumanCentered Approach</kwd>
        <kwd>Employee Experience</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>In the last decade, there has been an adjustment in process thinking, an emphasis is
placed on customer-oriented processes that adapt to changing business conditions. In
addition, more and more attention is paid to the study of the activities of knowledge
workers (knowledge-intensive work) involved in the generation of value for consumers.
Of particular interest in this regard is the synergy of proven time-tested techniques and
approaches for continuous improvement and process transformation, on the one hand,
and design thinking approaches, on the other. The “Design Thinking” approach
implements “Human-centered design” (HCD).</p>
      <p>Design thinking techniques can be used to develop and reengineer not only products
(in the usual sense, as a product or service), but also in principle the technology of
activity as such (processes). In the context of this study, the product is an improved
business process, the user of the business process is the consumer and client.</p>
      <p>
        Currently, one of the new directions of the Design Thinking approach has been the
optimization of the company's business processes for the needs of employees
(Employee Experience or EX Design). This is a completely new way to look at the
personnel management process from within, to identify gaps in existing business processes
for the correct and convenient work of a person in an organization. This has a positive
effect on reducing and completely eliminating the risks associated with the so-called
human factor. To quote D. Norman: “The blame for most of the disasters is attributed
to human error, which in almost 100% of cases was the result of poor design” [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ].
      </p>
      <p>
        The modern leader understands that the working environment and human-centered
business processes create a good psychological climate, which determines how the
employee will be able to solve tasks, get business results, manifest and be focused on
developing his talents. That is, everything that is embedded in the concept of Employee
Experience. Thus, introducing the design thinking approach into its activities, SAP
builds relations with the employee in such a way that the employee becomes a partner,
part of the company’s system. Thus, the focus is not so much “on the role of the
employee in the life of the company, but rather on the role of the company in the life of
the employee” [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ]. German Gref, the head of Sberbank of Russia, considers staff as
internal customers, thereby emphasizing the importance of creating a favorable
“Employee Experience” for successful results in their work.
2
      </p>
    </sec>
    <sec id="sec-2">
      <title>Continuous process improvement and process transformation</title>
      <p>Continuous improvement is an approach to improving the operational processes of an
organization, which is based on a continuous analysis of operations in order to identify
problems, as well as identify sources and methods of reducing costs, areas of
rationalization and other components of optimization. As part of continuous improvement, they
evaluate and monitor effectiveness, in other words, try to identify, describe, measure,
analyze and regulate business processes. In this way, an up-to-date list of opportunities
for improvement and the associated pool of projects for optimizing the activities of the
organization are formed and maintained.</p>
      <p>Six Sigma, Lean production, Lean manufacturing, Kaizen and other well-known
methodologies offer a wide range of techniques, the use of which can help improve the
quality of products, processes and management systems.</p>
      <p>
        Process transformation (reorganization, reengineering) [
        <xref ref-type="bibr" rid="ref3 ref4 ref5">3-5</xref>
        ] involves a fundamental
rethinking of processes. First of all, transformation is aimed at end-to-end processes. It
involves bringing processes, metrics, business functions, technologies, elements of the
organizational structure in line with the strategic goals of the organization and its
tactical tasks for the essential (sometimes they mention one of the definitions from the term
“business process reengineering” [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ], introduced by M. Hammer and J. Champy, the
“cardinal”) measurable increase in the value of a product / service for a consumer. At
the same time, it is assumed that innovations, new concepts, technologies will be
introduced into everyday work, new opportunities will be revealed for process
improvements, etc. It is believed that in the process of transformation, no idea will be left
without consideration, no proposal will be rejected (the exception is incompatible with the
law, financial capabilities and company policies). Improvement with this approach is
not a goal, but a consequence of a radical revision of views on the process.
      </p>
      <p>Transformation and continuous improvement must change the culture of the
organization, create partnerships between management and staff to ensure the success of the
changes. Transformation-level projects should use information systems of the BPMS
class and be based on the Business Process Management (BPM) approach. The end of
transformation is the beginning of a cycle of continuous improvement of business
processes that underwent transformation (see Ошибка! Источник ссылки не найден.).</p>
      <p>There are feedbacks in the figure. The feedbacks 1 and 2 mean that the testing of the
new process was unsatisfactory, therefore, redesigning the process or even adjusting
the goals of the transformation is required. Feedback 3 is possible in the situation when
the completion of one transformation project initiates the start of the next
transformation project. However, after a satisfactory completion of the transformation process
project, continuous process improvement can take effect.</p>
      <p>One of the capacious stages of the process transformation is process design. A
simplified process design scheme usually includes a description of the business context,
design of the internal structure of the business process, and planning of a business
process implementation project.</p>
      <p>The Business Context Description step may include the following actions.
• Brief description of the company;
• Definition of the company's mission;
• Analysis / formation of the strategic goals of the company (with the allocation of one
or more goals, the implementation of which will be carried out by the designed
business process)
• Naming a business process;
• Identification of the consumer of the business process and its requirements;
• Determining the value of the output of a business process for the consumer,
determining the target characteristics of the output of a business process (ideally:
specification of outputs);
• Collecting initial values of indicators of efficiency and effectiveness (if we are
talking about transforming an existing business process);
• Defining the characteristics of the inputs of the business process necessary to obtain
the required output / outputs (ideally: specification of inputs);
• Defining the events that trigger the execution of the process;
• Analysis of existing regulations, external and internal policies and rules that impose
restrictions on the design and execution of a business process.
4</p>
      <p>Process
transformation</p>
      <p>Continuous
improvement</p>
      <p>Defining the goals of process
transformation</p>
      <p>Process design
Testing a new process</p>
      <p>Analyzing testing results
Implementing a new process</p>
      <p>Analyzing results of the
implementation of a new process
1
2
3</p>
      <p>The stage “Designing the internal structure of the business process” may include the
following actions.
• Definition of actions that make up the business process;
• Definition of tangible results and artifacts created during the process and the states
through which they pass;
• Definition of organizations, functions and roles involved in the implementation of
the process;
• Definition of information systems involved in the process;
• Definition of the places of the performed actions and storage places related to the
process of material results and artifacts;
• Identification and indication of specific events that affect the execution of the
process;
• Definition of business rules restricting the execution of the process;
• Creating a list of business process metrics with target values, as well as indicating
the frequency of collection of actual values and measurement points.</p>
      <p>When performing the “Planning a business process implementation project” stage,
it is necessary to analyze the need to include the following actions in the
implementation plan.
• Creation of new roles and powers or modification of existing ones;
• Creation of new or restructuring of existing functional units;
• Development or refinement of information systems, including automation of
business processes;
• Development and implementation of ancillary tools, such as standards, instructions,
and manuals;
• Opening of new channels and points of interaction with customers;
• Creation and implementation of monitoring tools for indicators of efficiency and
effectiveness of the process, dashboards for monitoring, as well as escalation
mechanisms.
3</p>
    </sec>
    <sec id="sec-3">
      <title>The Design Thinking approach</title>
      <p>
        The Design Thinking approach, actively promoted as a practical tool and scientific
discipline by the Hasso Plattner Institute (SAP) and d.school (Stanford), is aimed at
creating a product or service that is in demand by the consumer [
        <xref ref-type="bibr" rid="ref10 ref6 ref7 ref8 ref9">6-10</xref>
        ]. The DM process
includes phases such as empathy, focus, idea generation and selection, prototyping and
testing. The key positions of design thinking are associated not so much with the
generation of ideas as they are aimed at structuring intellectual personal and collective
work. Design thinking forms the design consciousness of the working group. Design
thinking in Russia has already been introduced as part of the management process at
Alfa Bank, Sberbank, Promsvyazbank, etc. and telecommunications companies. For 4
years now, we have been teaching the methodology of design thinking of IT specialists
and university professors in continuing education programs at the Financial University,
as well as conducting classes on undergraduate and graduate programs.
      </p>
      <p>SAP, P&amp;G, IBM and Cisco integrate software development and design thinking
throughout the organization, creating their own frameworks, training employees at all
levels, hiring professional designers and design researchers, and acquiring design
companies to work on large-scale projects. Cisco was the first company to launch a
nontechnical HR hackathon in 2016. For many companies, design thinking is becoming the
basis for the formation of a new corporate culture and corporate thinking necessary for
digital transformation.</p>
      <p>
        The tools included in the process of design thinking develop empathy, logic,
imagination, intuition and system thinking, the ability to organize and direct collective
cocreation, and engage practical thinking. Many of the previously developed collective
creative approaches and methodologies, known from the works of prominent world
scientists [
        <xref ref-type="bibr" rid="ref11 ref12 ref13 ref14 ref15">11-15</xref>
        ], are included in the package of techniques and tools for design
thinking.
4
      </p>
    </sec>
    <sec id="sec-4">
      <title>Design thinking for process transformation</title>
      <p>Design thinking techniques can be used to develop and reengineer not only products
(in the usual sense, as a product or service), but also in principle, technology of activity
as such (processes). After all, all participants in the project team primarily work with
the creation and restructuring of processes, designing the optimal organizational
structure, etc. In the context of this study, the product is an improved business process, the
user of the business process is the consumer and client.</p>
      <p>Companies, in the face of ever-increasing offers in the field of consulting, need to
pay special attention to flexibility and innovation, and, most importantly, to
understanding the needs of customers. This understanding is developed by the project team
through a phase-structured process: Empathize, Define (Point-of-View), Ideate,
Choice, Prototype, Test.
4.1</p>
      <sec id="sec-4-1">
        <title>Modeling «AS IS» и «TO BE»</title>
        <p>
          At the process simulation stage, the following Design thinking techniques can be
recommended.
1. Guerrilla Ethnography, including «Fly on the wall», «Shadow», «Moccasins»,
codesign, foto and video-ethnography, participant observation in the context
2. In-depth interviews using the well-known 5 Why &amp; How, including the one included
by Eric Ries in the Lean Startup Methodology [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ], as well as using the “5W”
questions technique, which begin with the keywords: «Who, What, Why, When, Where».
3. Analysis of personal belongings.
4. The Triad method used to compare the process with two similar ones. Thus, the
differences between one desired process and the other two are better revealed, a more
complete description is given, and emotions are determined that give the key to a
possible correction of the process’s failures.
5. Visualization of the user profile through Empathy Map and Customer Journey Map,
CJM. При исследовании пользовательского опыта или опыта персонала
изучают всю цепочку действий, стараются понять, какие эмоции при этом
испытывает участников процесса, определяют болевые точки и пути их
исправления. When researching user experience or personnel experience, they study the
whole chain of actions, try to understand what emotions are experienced by the
participants in the process, determine pain points and ways to correct them.
6. Service Blueprint – this is an extension of the customer experience chain through a
structural description of the service. The service card not only describes the actions
of the client, but the visible and invisible actions of the service provider in relation
to the client, reflects the nature of the support of the business system, including IT
infrastructure, identifies the bottlenecks of the business process, and evaluates the
processes under study: what is important? where can one be mistaken? where are the
risks? [
          <xref ref-type="bibr" rid="ref17">17</xref>
          ].
7. Employee Experience Journey Mapping (EXJM), as one of the tools for identifying
gaps in existing business processes, will allow the manager to understand whether
the employee is realizing his talents and abilities, whether he is developing, or setting
new goals for himself.
8. «Matrix of positive and negative experiences» - in this canvas it is convenient to
record and analyze the results of the interview. As a result, the user profile is
determined and the pain points of the business process are identified.
4.2
        </p>
      </sec>
      <sec id="sec-4-2">
        <title>Modeling «TO BE»</title>
        <p>At this step, the POV question is formulated using and technique «How Might We»
(HMW). The vision of the situation is determined, a detailed description of the problem
is given, and the main direction for finding a way out of it is highlighted.
4.3</p>
      </sec>
      <sec id="sec-4-3">
        <title>Transition to the target state</title>
        <p>The Current-Future-Barriers method, which defines ways to remove obstacles and
barriers between the current problem (the present) and the ideal product (the desired future
state), will allow discussing the possibility of implementing the chosen idea.
4.4</p>
      </sec>
      <sec id="sec-4-4">
        <title>Definition of key performance indicators, KPI</title>
        <p>The stage of describing the business context in the framework of the design of the
business process allows you to examine and fix the context of the business process. At this
stage, such artifacts can be created as the Organization’s Goal Tree with the allocation
of a strategic goal / goals, to which the projected business process is aimed, as well as
the expanded table “Balanced Scorecard”, which includes the following columns: name
of the strategic the personal goal that the projected business process aims to achieve;
name of the metric; current metric value; the target value of the metric, a list of activities
that contribute to the achievement of the goal (achievement of the target values of the
metrics).</p>
        <p>
          To evaluate and select the best design option (hypotheses), the "Effort-Effects"
Matrix can be built. Then the teams proceed to create a prototype of the key idea, which
received the maximum estimates by the criterion of efficiency and the minimum
estimates by the criterion of costs. Each of the steps of the case suggests that designers,
having tested the hypothesis, can at any moment make a turn (“pivot” [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]) to other
ideas.
        </p>
        <p>To test the viability of innovative proposals, an analysis can be performed using The
Venn diagram of "Sustainable solutions". It reflects the basic principles of innovation
development: it must be in demand by people, feasible from the point of view of
technology and cost-effectiveness.
4.5</p>
      </sec>
      <sec id="sec-4-5">
        <title>Testing the hypothesis for process improvement</title>
        <p>The phases of design thinking “prototyping” and “testing” allow you to work out the
idea developed in the research process on a layout, in an esque or script. At these design
phases, an experimental test is carried out with the help of users of the business process
involved for this purpose. Testing is best done on the principle of “The World Café”
(rounds of 5-10-15 minutes). This will allow project participants to collectively
highlight the strengths and suggest weaknesses of the hypotheses discussed.
5</p>
      </sec>
    </sec>
    <sec id="sec-5">
      <title>Conclusion</title>
      <p>Over the past decade, experts have noted the importance of adjusting processes in
terms of focusing on a person (client, user, company employee). This need is caused by
the need for quick adaptation to the rapid change of technology and business conditions.
Therefore, the company must take in its arsenal new approaches to management,
process design and development of innovative products. Of particular interest in this regard
is the synergy of proven time-tested techniques and approaches for continuous
improvement and process transformation, on the one hand, and design thinking
approaches, on the other. Design thinking techniques can be used to develop and
reengineer not only products (in the usual sense, as a product or service), but also in principle
the technology of activity as such (processes). After all, all participants in the project
team primarily work with the creation and restructuring of processes, designing the
optimal organizational structure, etc.</p>
      <p>Further development of this study may include: 1) expanding the scope of the Design
thinking approach to all stages of the process transformation; 2) the formation of
recommendations for the formation of a pool of Design thinking techniques, depending on
the context of the process transformation project.</p>
    </sec>
  </body>
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