2. Agenda Customer-Centricity is a Challenge for Banks
Key Aspects of Design Thinking in a Corporate Context
Embedding Design Thinking In Deutsche Bank’s IT Division
The Evolution of Design Thinking Within Deutsche Bank
Design Thinking Outcomes at Deutsche Bank
Lessons Learned

3. Customer-Centricity is a Challenge for Banks
Banks need to develop a deep understanding of customers’ needs
This raises the question as to when banks should involve their customers in the development of new products and services.
Customers receive very attractive financial services offerings from new, non-traditional, players.
In fact, over 50% of the innovations in the financial sector are being made by non-traditional institutions.
This means that banks’ traditional development and innovation processes have to compete with the research and development environments of non-banks.
To respond to these challenges, traditional banking institutions clearly have to get better at innovation.

4. Agenda Customer-Centricity is a Challenge for Banks
Key Aspects of Design Thinking in a Corporate Context
Embedding Design Thinking In Deutsche Bank’s IT Division
The Evolution of Design Thinking Within Deutsche Bank
Design Thinking Outcomes at Deutsche Bank
Lessons Learned

5. Key Aspects of Design Thinking
Design thinking is a well-tested approach that enables organizations to see the world through the eyes of their customers
Customer-centricity involves a systematic and iterative discovery of customer needs (which may be latent).
A key aspect of customer-centricity is that end customers are continuously integrated into the organization’s innovation process.

6. Key Aspects of Design Thinking

7. Key Aspects of Design Thinking
Milestone
Description
Design Space Exploration (ongoing)
The problem design space is explored (concurrently with the following milestones)
Critical Functions
Critical functions are extracted from the problem space that need to be integrated in the ultimate solution
Dark Horse
(visionary)
Previous assumptions are challenged to explore unlikely-to-succeed ideas, knowing that if they succeed the performance payoff will be relatively large
Funky
(integrated)
The most successful elements from the previous milestones are connected; this milestone includes roughly connected concepts
Functional
The first concrete preview of the ultimate solution that integrates working functionalities is developed
X-is Finished
One key functionality, “x,” is completed
Final Prototype
The final prototype includes the solution for one/several key identified needs and delivers the experience of using the real product (even before development starts)

8. Agenda Customer-Centricity is a Challenge for Banks
Key Aspects of Design Thinking in a Corporate Context
Embedding Design Thinking In Deutsche Bank’s IT Division
The Evolution of Design Thinking Within Deutsche Bank
Design Thinking Outcomes at Deutsche Bank
Lessons Learned

9. Deutsche Bank’s IT Division
Founded in 1870 in Berlin, it is the largest bank in Germany and the largest currency dealer worldwide.
The Group, Technology & Operations (GTO) division is the bank’s “DNA.” GTO provides the
processes,
systems,
data and
Infrastructure needed for running the bank
GTO has about 24,000 employees, representing over 20% of Deutsche Bank’s total full-time-equivalents (the bank has about 100,000 employees worldwide). As of 2013.

10. Embedding Design Thinking
How the IT division could supply products and services to the business without having any idea of what end customers really wanted?
How the solutions it provides are actually deployed?
To enable customer proximity and the alignment of IT and business, end customers must be involved directly at the intersection of business and IT.
CIO agreed that end customers’ perspectives should have more influence on the business to enable it to deliver customer-centric innovations.

11. Agenda Customer-Centricity is a Challenge for Banks
Key Aspects of Design Thinking in a Corporate Context
Embedding Design Thinking In Deutsche Bank’s IT Division
The Evolution of Design Thinking Within Deutsche Bank
Design Thinking Outcomes at Deutsche Bank
Lessons Learned

12. The Evolution of Design Thinking Within Deutsche Bank
Dimension
Evolution Summary
Phase 1: Learning
(year 1-2)
Phase 2: Adapting
(year 3)
Phase 3: Diffusing
(year 4 onwards)
Organizational Structure
Strength of connectivity between DT project structures and organizational structures
Weak—isolated from other initiatives
Stronger—simplifying DT elements for use and company projects
Strong—core management of all DT projects
Project staffing of the DT team
Externally hired interns
Externally hired interns mixed with internal staff
Mixed team: externally hired interns; externally hired interns with internal staff; internal staff
Developing Customer Proximity Mindset
Employee design thinking capabilities
Key tools and interdependencies of tools
Understanding of holistic customer-centric innovation approach
Development of skillset for future work
Understanding of customer integration
Singular exchange points
Institutionalized in DT projects
Institutionalized beyond DT projects
Focus of DT
Business-IT alignment
Fostering customer-centricity and understanding customers
Application beyond DT projects

13. The Evolution of Design Thinking Within Deutsche Bank
Dimension
Evolution Summary
Phase 1: Learning
(year 1-2)
Phase 2: Adapting
(year 3)
Phase 3: Diffusing
(year 4 onwards)
Evolution Triggers
Triggers for each phase
Visibility of tangible project milestones and their outcomes
Strong sponsorship from strategic level
Externally coached learning for quick internal learning
Speed of development
Simplifying DT project structure for different project needs
Transfer of DT staff to development staff (especially after DT projects)
Systematically managed and taught innovation community
Visibility of DT as methodology and innovation hub
Standardization of DT toolbox
DT principles taught at executive level, operational level, IT division and business division
Projects
See descriptions in the boxes
E.g., Financial timeline (2009)
E.g., Accessing stored documents (2011)
E.g., Attracting new brokerage clients (2013)

14. Role Interdependencies
Bridgehead - Responsible for the internal strategic evolution of DT and for connecting the DT teams with the organization and vice versa.
Sponsor - Representing top management, defining the challenge and assigning professional coaches to the DT teams.
Professional Coaches - Providing specific know-how and expertise to DT teams.
DT Team - Applying the DT methodology
Innovation Community - Not formally assigned to DT projects, but showing interest in DT activities.
Method Coaches - Responsible for educating Deutsche Bank staff in the DT methodology and communicating method-related issues.
Researchers - Identifying findings from DT projects and reintegrating the findings in future projects.

15. Agenda Customer-Centricity is a Challenge for Banks
Key Aspects of Design Thinking in a Corporate Context
Embedding Design Thinking In Deutsche Bank’s IT Division
The Evolution of Design Thinking Within Deutsche Bank
Design Thinking Outcomes at Deutsche Bank
Lessons Learned

16. Design Thinking Outcomes at Deutsche Bank
Phase 1: Learning
DT was mostly observed by members of the innovation community. As they saw results, they started to adapt and practice their own ways of using the DT approach, step by step.
Phase 2: Adapting
Diffuse practices into the work culture, spreading awareness of customer-centric solutions.
Phase 3: Diffusing
150 members from all divisions who regularly attend presentations and have built a knowledge- and experience-exchange community.
DT teams located in the IT division had direct contact with the bank’s potential end customers, which enhanced their understanding of customers and increased customer involvement.

17. Agenda Customer-Centricity is a Challenge for Banks
Key Aspects of Design Thinking in a Corporate Context
Embedding Design Thinking In Deutsche Bank’s IT Division
The Evolution of Design Thinking Within Deutsche Bank
Design Thinking Outcomes at Deutsche Bank
Lessons Learned

18. Lessons Learned Create an Enabling Organizational Structure
Provide Design Thinking Education
Strategically Position Design Thinking Team Members
Use Prototyping as a Key Tool
Take an Evolutionary Approach to Building a Design Thinking Culture